China is to bring in new rules that will limit the amount of money and time that people can spend on video games.
Beijing first moved against the gaming sector in 2021, ruling that online gamers under the age of 18 would only be allowed to play for an hour on Fridays, weekends and holidays.
Online games must not offer rewards that entice people to excessively play and spend, including those for daily logins and topping up accounts with additional funds, said the industry regulator, the National Press and Publication Administration (NPPA).
“The removal of these incentives is likely to reduce daily active users and in-app revenue, and could eventually force publishers to fundamentally overhaul their game design and monetisation strategies,” said Ivan Su, an analyst at Morningstar.
The new draft rules have not veered from regulators’ ongoing focus on ensuring companies have “reasonable business models and operating cadence”, he said.
He added that minors have been spending a historically low level of money and time on Tencent’s games since 2021 when protection of younger players became a focus for Beijing.
The original article contains 639 words, the summary contains 181 words. Saved 72%. I’m a bot and I’m open source!
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China is to bring in new rules that will limit the amount of money and time that people can spend on video games.
Beijing first moved against the gaming sector in 2021, ruling that online gamers under the age of 18 would only be allowed to play for an hour on Fridays, weekends and holidays.
Online games must not offer rewards that entice people to excessively play and spend, including those for daily logins and topping up accounts with additional funds, said the industry regulator, the National Press and Publication Administration (NPPA).
“The removal of these incentives is likely to reduce daily active users and in-app revenue, and could eventually force publishers to fundamentally overhaul their game design and monetisation strategies,” said Ivan Su, an analyst at Morningstar.
The new draft rules have not veered from regulators’ ongoing focus on ensuring companies have “reasonable business models and operating cadence”, he said.
He added that minors have been spending a historically low level of money and time on Tencent’s games since 2021 when protection of younger players became a focus for Beijing.
The original article contains 639 words, the summary contains 181 words. Saved 72%. I’m a bot and I’m open source!