In January 2024, China approved 115 new video game titles, marking the largest batch of approvals in the country in 18 months. This increase in approvals comes after a regulatory proposal caused industry concerns and led to a decline in gaming stocks of companies like Tencent and NetEase. Following the publication of the proposal, China approved 105 titles for sale in its December batch, the first time over 100 games were approved at once since July 2022. Companies such as Tencent, Lilith Games, Shenzhen Zhongqingbaowang Network Technology, and 37 Interactive Entertainment had their titles approved in January 2024.
Industry Rebound
Gaming companies listed in Shanghai, Hong Kong, and the US have collectively lost approximately $80 billion in value since the draft regulations were published. In response to the market turmoil, the NPPA removed the proposed regulation from its website. Initially, the NPPA framed the proposal as an effort to promote the “healthy development” of the gaming sector. However, it has now committed to consider public opinion in future revisions, as reported by the South China Morning Post.
During the previous year, 1,076 titles received licenses for release in China, marking a doubling from the 512 titles approved in 2022. This surge comes after the industry navigated an eight-month licensing freeze. As a result, Beijing has eased its regulatory scrutiny on technology firms to support economic growth amid a gradual post-Covid recovery.
