China suspends licensing of new video games
Nov 15, 2021
Guangzhou [China], November 15 : The Chinese government apparently has suspended the licensing of new video games.
China had approved the last video game license in July this year, reported by a newspaper, NIKKEI Asia.
This comes as the Chinese government limits children's gaming exposure and as application stores deplatform unauthorized titles.
The Chinese authorities have not made any official statement regarding the suspension of further licensing to new video games. Although, Investment Bank China Securities considers the intermission in rendering new licenses is the consequence of a convergence of separate policy initiatives, reported China's NIKKEI Asia.
Engineers and developers in China fear further extension and job security due to video game license freeze.
An engineer from Guangdong Province, home to much of the gaming industry said, "Multiple projects at my company have been halted because of the license freeze, I worry that staff might be cut if the licensing suspension persists," reported NIKKEI Asia.
Evidently, China has been stiffening its scrutiny over the media and entertainment industry. Recently in August this year, a crackdown was launched against online groups that pressure and force people into joining celebrity crowdfunding campaigns, reported NIKKEI Asia. People think the gap in game licensing could be a part of this state-led campaign.
Earnings of developers are not likely to be affected immediately if the license freeze persists. The reason being, majority of the developers tend to hold the release to analyze competing titles and other market conditions.
Another anticipated reason is the Chinese government's limitation over child exposure to video games. Children below the age of 18 years are allowed to access online gaming services only for one hour a day on weekends and holidays, mentioned NIKKEI Asia.
Websites from where games are downloaded pose another risk factor. During the 2018 halt over game licensing, certain downloading portals were willing to carry titles that were unlicensed, or carried fake certifications, reported the newspaper.
A global game developer, Tencent Holdings is building and creating markets outside the reach of Chinese authorities. Even TiMi Studio Group has launched independent game studios in Seattle and Los Angeles.
Apparently, China is encouraging and promoting the expansion of gaming commerce outside China, reported NIKEI Asia.
Yang Fang, Vice-Director of the Publishing Bureau of the Communist Party's Central Publicity Department, during a July Expo in Shanghai stated, "We need to further raise awareness for internationalization," reported NIKKEI Asia.
The rising speculation, scrutiny and regulation by the Chinese government over different markets and industries are hampering small developers.
