China Technology Group is hit by restrictions on access to children’s online games


Game industry update

Chinese children are only allowed to play video games for one hour on Friday, Saturday and Sunday under the new restrictions. These restrictions will hit game providers such as NetEase and Tencent.

The latest regulations announced in China’s state media on Monday coincided with the extensive regulatory reforms in China’s technology industry, as the industry’s largest companies lost tens of billions of dollars in market value.

under Regulation, Online game companies can only allow children to play games between 8pm and 9pm on Friday, Saturday, Sunday and holidays. Game companies must enforce this rule by using a real-name registration system and login requirements.

Chinese state media stated that the move is to protect the physical and mental health of minors (defined as under 18) and prevent excessive indulge in online games.

Daniel Ahmad, a game analyst at Niko Partners, said this is an “extremely strict policy.”

“Today, about 110 million minors in China play video games,” Ahmed said. “According to Tencent’s data, players under the age of 16 accounted for approximately 2.6% of its total player spending, which shows that the overall impact will not be too large, but it is still a significant part.”

In the second quarter of this year, Tencent’s mobile gaming revenue increased by 12% to RMB 43 billion (US$6.6 billion). Its total revenue for the quarter was RMB 138 billion.

Hawick Lau, President of Tencent warn An increasingly severe regulatory environment. He said the company is “very focused” on reducing the time and money children spend on games. “This is a complex issue that requires regulatory agencies and the industry to reach a consensus… It also needs a system to monitor it, but from a practical point of view, it is actually feasible,” he said.

Tencent has Previously limited the duration Allow minors to play games on its flagship game King of Glory From 1.5 hours to 1 hour per day, and from 3 hours to 2 hours on holidays. They said that the rules will be extended to the rest of the game lineup later. Companies are also seeking to deploy facial recognition technology to prevent young people from evading regulations.

The move came after a Chinese official media group briefly labeled the game as “Spiritual Opium“Before withdrawing comments. This article also complains about the prevalence of Internet addiction among young Chinese.

Chinese Internet giant NetEase has also been affected by these changes. The company’s US-listed shares fell 8.4% in premarket trading.

Supplementary report by Hudson Lockett in Hong Kong


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