The restrictions are aimed at excessive gaming behaviour.
The surge in popularity of video gaming is indisputable, as a substantial portion of global internet users invest considerable time and resources in this activity. The notable accessibility of video games across a variety of platforms, including consoles, PCs, and mobile devices, has led to a significant increase in the amount of time, money, and resources people invest in gaming. While this trend brings benefits to the gaming industry, it also has implications for other aspects of daily human life.
China's approach to video game regulation has indeed evolved significantly. The initial one-hour playtime limit for minors imposed in 2021 was a drastic step, but the recent focus on curbing in-game incentives marks a shift in strategy.
As per a report from the South China Morning Post, draft rules published on Friday by the National Press and Publication Administration (NPPA), an industry regulator, state that online games are prohibited from providing rewards that encourage individuals to engage in excessive play and spending. This includes incentives for activities such as daily logins and adding extra funds to user accounts.
All video games must put a cap on how much players can top up their accounts and alert users about “irrational consumption behaviour” via a pop-up window, according to the NPPA. The proposed regulation immediately prompted investors to dump shares in major Chinese video gaming stocks.
According to The BBC, China is the world's largest gaming market, and Tencent is the global leader in the sector in terms of revenue. The company dominates the Asian market and has invested in game studios across the world. Following the NPPA announcement, Tencent's share price fell by 12.4%.