China has always been strict on video game releases. As a country with massive censorship and regulations, video games are difficult to release. This month, China started a video game freeze to prevent new game releases which made many studios and developers nervous. China has the highest sale potential outside of the United States. The gaming industry in China was expected to have over $24 billion in revenue in 2018 according to Newzoo. Unfortunately, China recently announced they will start regulating video game releases.
Chinese president, Xi Jinping, stated the game regulations are ruining children’s eyes. A recent growth in myopia (nearsightednesses) in China has caused great concerns. While reports from the BBC and Professors state it may due to excessive studying and lack of sunlight, the Chinese government believe it’s a different goat.
The regulations are still blurry at the moment but expect heavier censorship from China. New video game releases will be heavily moderated and limited and reduce the number of online games available. In response to the changes, Tencent’s stock has dropped by 5% in a single day. Tencent is a game publisher in China and they own Riot (League of Legends) and has huge stock in Epic (Fortnite). They were supposed to release Monster Hunter World in China but it was pulled off the market due to “complaints.” The removal may have been due to the proposed video game regulation.