China suspends approval of new online games in the country

The government of China paralyzed, indefinitely, the licensing process that approves the entry of new online games in the country. The information is from the newspaper South China Morning Post.

According to the report, according to sources linked to the government, the decision is part of a recent policy in the country to combat addiction to games among the younger population. For now, there is no official statement confirming or not the new suspension measure.

China has recently drastically reduced the amount of time minors can play online, a move that has even affected the actions of companies in the sector.

Fewer options to play

According to the article, the objective of the gambling period control policy would be to “reduce gambling addiction” in the country and also limit the supply of new games, as frequent releases would only contribute to this situation.

Traditionally, the Chinese regulatory body publishes the list of approvals at the end of each month, and only after this stage can the bonds be traded in the region.

For the time being, there is no indication of the duration of the suspension, but as of August 2021 no new license was granted. Some of the sources consulted allege that there was no stoppage, but a deliberate delay in approvals.

Government against Big Tech

Local companies like Tencent and NetEase tend to launch frequently, especially in the mobile sector, and may have suffered in the process. They also received guidelines to avoid dealing with certain content and also not to focus only on obtaining profit from microtransaction mechanics or games in freemium format, for example.

LoL: Wild Rift is one of the titles on hold in China.LoL: Wild Rift is one of the titles on hold in China.Source: Riot Games

The Chinese version of League of Legends: Wild Rift, which is published by Tencent, was approved by the government in early 2021, but its release is now delayed without a new date to take place.

Disputes between government and technology companies in China are currently not restricted to trying to limit youth gambling: national giants in the sector have received sanctions to curb their own national and international expansion. As a result, some IPO processes were canceled and investment funds are holding back new partnerships in the country.