China’s gaming industry faces challenges due to new regulations aimed at curbing spending and rewards that encourage video games, affecting both companies and the global gaming market.

What China’s new rules suggests

China bans daily login rewards, first-time or consecutive spending in online games, sets playtime limits for players under 18, and suspends new video game approvals for eight months due to gaming addiction concerns.

How these rules is affecting China’s online gaming industry

New online game spending limits have caused panic among investors, wiping off nearly $80 billion in market value from China’s two largest gaming companies, prompting speculation on potential earnings impacts and potential restrictions.