China’s video game license freeze continues. South china morning post notes that the National Press and Publication Administration (NPPA) has not published a list of newly approved titles since July 2021. Because of this, the state newspaper Securities daily
Typically the NPPA approves around 80 to 100 games per month, so the lack of an approved list has stalled part of the industry. China is such a huge market and the disruption has created uncertainty that has led to layoffs at game companies. and conglomerates with game departments. However, it sounds like the smaller outfits have been hit the hardest.
In comparison, companies like tech giant Tencent have continued to expand internationally to offset the regulatory situation at home. SCMP
No reason was given for the break, and the NPPA has not given it when the permits are restarted. Before that recent freeze, the longest period of no new game licenses released was a nine month window in 2018.
SCMP points out that the admission freeze took place a few months after March 2021, when President Xi Jinping expressed concern about the psychological effects of gambling on young people. later in August, state media related to Video games as “spiritual opium” and “electronic drugs”. Then on September 1st Restrictions that restrict online gambling of the youth of the nation came into effect. While these restrictions were not a law (and were soon bypassed), the combined effects of it all, the lack of new approvals for games and the general uncertainty, affects the industry – and not in a positive way.
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