The National Press and Publications Administration (NPPA), which is responsible for overseeing game content in China, has revealed a new set of guidelines to regulate in-game spending and content. In summary, the NPPA aims to reduce the tactics used by game publishers to increase player spending and game time. For example, they prohibit rewarding players for frequent logins and prohibit forcing players into competitive modes. The guidelines also propose additional measures, such as setting a maximum limit on in-game spending and requiring Chinese game companies to present content that complies with Chinese laws, even if the game is sold overseas.
Zeng Xiaofeng, Deputy Head of Niko Partners, a game market research company in China and Southeast Asia, believes that these regulations will impact most games in China, except for games that are sold without in-app purchases, as they directly affect the monetization methods of these games.
While these regulations are still in draft form and in the process of seeking public feedback, analysts view them as a reflection of the Chinese authorities’ desire to exercise further control over the game industry. This has resulted in a significant decrease in the stock prices of major Chinese game companies such as Tencent and Netease after the publication of these guidelines.
TLDR: The National Press and Publications Administration in China has unveiled new guidelines to regulate in-game spending and content. These guidelines aim to restrict certain tactics employed by game publishers to increase player spending and game time. They include measures such as prohibiting frequent login rewards and forced competitive modes. Furthermore, Chinese game companies must ensure their game content complies with local laws, even for games sold abroad. The impact of these regulations has caused a decrease in stock prices for major Chinese game companies.
Leave a Comment