Beijing has taken a step back from the proposed restrictions on the video game industry by quietly removing the draft guidelines from the official website. This move comes after the initial release of the draft rules led to a significant drop in the market value of local gaming giants, causing widespread concern.
Key Takeaway
Beijing has quietly removed the proposed gaming rules from the official website, leading to a positive market response. The withdrawal and the potential reconsideration of the regulations indicate a significant development in the regulatory landscape for the video game industry in China.
Reversal of Decision
The link to the draft rules was found to be inaccessible, as reported by Reuters. This development led to a surge in the shares of Tencent and NetEase, signaling a positive response from investors to the news of the withdrawal of the proposed gaming regulations.
Official’s Removal
Furthermore, Beijing has also removed a key official, the head of the publication bureau of the Communist Party’s Propaganda Department, in connection with the handling of the release of the draft rules. The unexpected nature of the guidelines had caught both investors and gaming giants off guard, leading to widespread repercussions.
Possible Revisions
Recent reports from local media have suggested that authorities might be considering revising some of the proposed rules, indicating a potential shift in the regulatory stance. This speculation gained traction following the significant impact on the market and the industry as a whole.
Proposed Measures
Last month, China’s video game regulator put forward new measures aimed at curbing excessive time and money spent on computer and smartphone games. The specific suggestions included the elimination of rewards for daily play, which can contribute to addiction, and the restriction of in-game purchases to limit spending.
