China Implements Stricter Regulations on Video Game Time and Spending
China has taken steps to regulate the amount of time and money individuals spend on video games in an effort to curb excessive gaming behavior. The surge in the popularity of video gaming has led to a significant increase in the investment of time, money, and resources in this activity by global internet users. With video games accessible across various platforms such as consoles, PCs, and mobile devices, the impact on daily life has become undeniable.
China’s approach to video game regulation has evolved over time. Initially, the country imposed a one-hour playtime limit for minors in 2021, a drastic measure. However, the focus has now shifted to curbing in-game incentives, indicating a change in strategy.
According to a report from the South China Morning Post, the National Press and Publication Administration (NPPA), an industry regulator, has published draft rules that prohibit online games from offering rewards that encourage excessive play and spending. This includes incentives for activities like daily logins and adding funds to user accounts.
The NPPA also requires all video games to set a cap on how much players can top up their accounts and to alert users about “irrational consumption behavior” through pop-up windows. The proposed regulations have prompted investors to sell shares in major Chinese video gaming stocks.
China is recognized as the world’s largest gaming market, with Tencent leading the sector in terms of revenue. Tencent, which dominates the Asian market and has invested in game studios worldwide, experienced a 12.4% drop in share price following the NPPA’s announcement.
These new regulations aim to strike a balance between the benefits of the gaming industry and the potential negative impact excessive gaming can have on individuals and society. By implementing stricter controls, China seeks to address the growing concerns surrounding video game addiction and promote healthier gaming habits.
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