Chinese tech groups hit by limits to online gaming access for children

Chinese children are allowed to play video games for only an hour on Fridays, Saturdays and Sundays with fresh curbs set to attack game providers such as NetEase and Tencent.

The latest rules, released in China’s state media on Monday, are coming amid widespread regulatory turmoil in the country’s tech industry, which has wiped tens of billions of dollars from the market value of the largest players.

under Rules, Online gaming companies can allow children to play only on Fridays, Saturdays, Sundays, and holidays from 8 pm to 9 pm. Game companies must use the real name registration system and login requirements to enforce the rules.

The Chinese mass media said the move was to protect the mental and physical health of minors, defined as under the age of 18, and to prevent excessive spoiling of online games.

Daniel Ahmad, a game analyst at Niko Partners, said this was a “very restrictive policy.”

“Today, there are about 110 million minors playing video games in China,” said Ahmad. “According to Tencent, players under the age of 16 make up about 2.6% of a player’s total spending, which shows that the overall impact is less important, but it’s still a noteworthy chunk. “

In the second quarter of this year, Tencent’s mobile game revenue increased by 12% to RMB43 billion ($ 6.6 billion). Overall revenue for the quarter was RMB138 billion.

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Martin Lau, President of Tencent, warning In an increasingly stringent regulatory environment, the company is “very focused” on reducing the amount of time and money children spend playing games. “This is a complex issue that requires regulatory and industry consensus … It also requires a system to monitor it, but from a practical point of view it is actually feasible.” He said.