Beijing has given NetEase and Tencent licenses to publish new paid games

Beijing has given NetEase and Tencent licenses to publish new paid games ...

China is quite strict when it comes to entertainment for youngsters. Last year, it announced a new regulation that restricted minors to only one hour of gaming per day on the weekends and absolutely no access to games on the weekdays. This legislation is imposed by pressuring publishers and game developers to introduce these limitations in their games.

Two of China''s largest gaming businesses, Tencent Holdings and NetEase, have received permission to release new paid games in the country. The National Press and Publication Administration (NPPA) has granted these licenses to 73 online games, from which the vast majority (69) are mobile titles.

It''s important to note that not all businesses had their licenses paused for the entire period of July 2021 - September 2022. In fact, Beijing offered licenses to 241 games between April 2022 and August 2022, but none of these titles were made by NetEase or Tencent. As such, both businesses are now able to distribute new paid games after a 14-month break.

NetEase''s stock plummeted by 5% on the New York Stock Exchange (NYSE) in pre-market before falling again in the morning.

Both NetEase and Tencent are seeing greener pastures in overseas markets as of late. Quantic Dream, a Western game studio and Heavy Rain developer, has been acquired by NetEase, whereas Tencent is currently holding a 16.25% share in Elden Ring developer FromSoftware.

It is important to understand that China has increased its position in its local IT sector recently, but that its scope isn''t limited to the gaming industry.