Video games: Chinese giants collapse on the stock market after a turn of the screw from Beijing

2023-12-22 15:17:49

Published on Dec 22 2023 at 11:20Updated Dec 22 2023 at 4:17 p.m.

This is yet another hard blow inflicted on the Chinese video game giants in their domestic market. On Friday, Beijing announced that it would put in place new rules to restrict in-app purchases and microtransactions within video games, a financial windfall for all players in the sector around the world.

In detail, the regulatory authority dealing in particular with the video game industry – the National Press and Publication Administration (NPPA) – intends to cap the possibility for “gamers” to reload their wallets within games, but also prohibit rewards offered to the most diligent among them and which might encourage them to play even more. Alert messages warning players that they are potentially behaving “irrationally” should also be added to this system.

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