China is hitting the gaming industry again. 14 thousand fell. small businesses

Chinese authorities have frozen the issue of new licenses for the emerging video games. The trial has been underway since July last year. Many small companies closely related to the gaming industry closed their activities, and some of them moved abroad, reports the magazine South China Morning Post.

The last such enormous turmoil in this industry took place in 2018, when there was a strong regulatory reshuffle. Now with the National Press and Publications Administration (NPPA) in China, an institution dealing with the regulation and licensing of games, over 14,000 enterprises have been deregistered (from July 2021).

Larger companies, often real hegemons in the industry, such as Tanwan Games, Tencent Holdings if NetEase, they were forced to lay off many employees or transfer resources to foreign markets. The aforementioned Tencent announced plans to open his new video game studio in Singapore. However, not everyone could afford it.

In order to find the origin of all these problems, it is necessary to go back a few months. Then in Middle State the gaming industry has come under real fire. In Economic Information Daily, which belongs to a state news agency in China, computer games have been dubbed an “electronic drug” … and then things got worse.

New campaigns were introduced successively, based on special, dedicated applications and personalized advertisements, to raise the issue of social problems. Many of them were related to gaming and the Internet. Chinese regulators began to pressure huge industry corporations to more rigorously comply with the new requirements (e.g. limiting children’s playing time).

The State Council has decided to implement a unified electronic system that will serve as a control system. Thanks to special identity authentication, the institution has access to information about who spends how much time online.

Regulatory measures were implemented extremely vigorously and regularly. Children under 16 were forbidden to stream on special, adapted services. Young fans of computer entertainment could also spend less time with their favorite activity than before introducing the described barriers.

The restrictions began to cover other sectors. On November 1, 2021, registration on Chinese servers in the popular game – Fortnite has been disabled. Exactly two weeks later, all servers in this production were permanently removed. In practice for citizens China It was tantamount to the inability to use and play this production – in a normal, conventional way, without trying to circumvent the law.

As you can see, the carousel of restrictions is not going to stop. Many Chinese companies have suffered from the blows against the gaming and electronic sports industries. Probably many inquisitive people would ask the question: when will it end? The answer to this question will not be clear. There are many indications that we are witnessing something historic.


About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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