China plans to introduce new rules limiting video game spending to prevent obsessive gaming behavior, causing shares in tech giants to plummet and affecting the world’s largest online gaming market.
Beijing plans to curb online gaming, banning content that threatens national unity, security, or reputation. Restrictions include limiting gaming to certain hours and removing excessive rewards.
Knock-on effect
Tencent, the world’s largest gaming market, has experienced a 12.4% drop in share price following the NPPA announcement. The new regulations could affect “monetisation models” and potentially lead to the removal of some games from stores. The government’s new gaming rules could also speed up the approval process, requiring servers to be housed in China. Shares in rival NetEase and Dutch tech investor Prosus also fell.