By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Tencent and NetEase Lose $80 Billion in Value as China Announces New Rules to Limit Game Spending

Tencent and NetEase Lose $80 Billion in Value as China Announces New Rules to Limit Game Spending - News

by William D'Angelo , posted on 01 January 2024 / 9,846 Views

Chinese regulators has announced new rules that are designed to limit how much people in the country can spend on video games.

The new rules caused video game companies in China see their stock value plummet as Tencent and NetEase have lost a combined $80 billion in market value, according to Reuters.

Online games will now be banned from giving players rewards from logging in every day, if they spend money on the game for the first time, or if they spend several times on the game consecutively.

The new rules will also set limits on how much players can add to their digital wallets for in-game spending.

Tencent shares dropped by as much as 16 percent at one point, while NetEase saw share prices drop by as much as 25 percent following he National Press and Publication Administrations publishing the new draft rules.

Tencent Games' vice president Vigo Zhang in a statement said the company will not need to change "its reasonable business model or operations" for games and it has been strictly implementing regulatory requirements.

Zhang added that minors have been spending very little money and time since China in 2021 implemented minor protection. 

"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 Morningstar analyst Ivan Su.

The new rules do include requiring regulators to process game approvals within 60 days. The administration is looking for public comment on the rules through January 22, 2024.


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.


More Articles

59 Comments
aTokenYeti (on 22 December 2023)

β€œOnline games will now be banned from giving players rewards from logging in every day, if they spend money on the game for the first time, or if they spend several times on the game consecutively.

The new rules will also set limits on how much players can add to their digital wallets for in-game spending.”

A lot of Chinese game regulations are questionable but this is not one of them. This ought to be emulated globally

  • +23
JackHandy aTokenYeti (on 22 December 2023)

I prefer less government over-lording and more free will, myself. lol

  • +4
Pemalite JackHandy (on 22 December 2023)

...Which historically doesn't work as companies tend to prioritize profits over the consumer.

The EU for example has forced tons of companies to change in a positive manner.

See: Apple with USB C as the latest victim.

  • +19
VAMatt Pemalite (on 22 December 2023)
  • -16
LurkerJ Pemalite (on 26 December 2023)

One could say your obsession with buying the powerful PC gear is in fact a sign that you've fallen a victim to a company overcharging you. Should the amount of money you spend on hardware be regulated too?

  • +5
Pemalite LurkerJ (on 27 December 2023)

I buy powerful PC gear because I actually profit from it.

And the amount of money I spend on hardware is actually regulated.
See: Taxes.

  • -1
LurkerJ Pemalite (on 28 December 2023)

I am sorry, China doesn't make the distinction between those who make money by playing video games and buying in-app purchases like YouTubers and streamer from those who only play and don't profit. So you can't make that distinction for yourself either.

  • +3
Vengeance1138 (on 22 December 2023)

RIP Diablo Immoral lol

  • +16
Mnementh (on 22 December 2023)

The restrictions described here are actually good, they target predatory tactics. More countries should limit these tactics.

  • +15
VAMatt Mnementh (on 22 December 2023)

More countries should limit a person's ability to make their own decisions? No, thanks.

  • -10
Mnementh VAMatt (on 22 December 2023)

These companies limit a persons ability to make their own decisions by employing psychological interference.

  • +8
UnderwaterFunktown VAMatt (on 23 December 2023)

Except for the digital wallet thing they're only limiting companies business tactics here, not individual freedoms.

  • +3
VAMatt UnderwaterFunktown (on 23 December 2023)

Do you actually believe that? It is completely illogical.

  • -3
UnderwaterFunktown VAMatt (on 23 December 2023)

Lol yeah I believe it since it's actually the case

  • 0
VAMatt UnderwaterFunktown (on 23 December 2023)

What do you think a company is? It's just people.

Anyway, even if you set that aside, you still point out how this limits human freedom. So, someone supportive of freedom is, by definition, opposed to this.

  • -10
UnderwaterFunktown VAMatt (on 23 December 2023)

That's an extremely black and white statement, you're basicly saying supporting freedom means, by definition, being opposed to rules in general. Anyways, I'm not interested in going any further with this discussion.

  • 0
VAMatt UnderwaterFunktown (on 23 December 2023)

I'm not opposed to rules. I'm opposed to rulers. So, yes, you are correct in your underlying summary of my position, and that it is very black and white, that being supportive of human freedom necessitates that one oppose government infringing upon freedom.

  • -6
2zosteven VAMatt (on 27 December 2023)

chit, i think im the only one who agrees with you.

  • +2
VAMatt 2zosteven (on 27 December 2023)

Eh. It is what it is. People are so used to being controlled that they often fail to recognize that it is even happening.

  • +1
tslog (on 22 December 2023)

The 1st 2 comments summed it up well.

All those billions lost on the stock market, because China regulated gaming exploitation, predatory tactics and gaming addiction……Not only would Western countries never allow this, we all can see exactly what corporations and stock streets value the most, which is extracting our money by any immoral and criminal/illegal way possible.

  • +6
Mnementh (on 23 December 2023)

I am a bit surprised by the comment section here. These regulations target companies, not people. Companies aren't your friends, they use manipulation to increase profits. Companies aren't democratic controlled entities, they are authoritarian controlled and they have goals that don't align with the goals of the consumers - us. And without a doubt global companies are far more powerful than people. So having governments in our corner should be good not bad, because these companies limit our possibilities to make our own choices and only governments have the power to match them.

  • +5
VAMatt Mnementh (on 23 December 2023)

There are no governments in "our" corner. That's the core mistake in what I assume to be your belief system. If you honestly believe that, you are ignorant of history. You can find government behind every major problem the human race has ever faced. Every genocide, every instance of mass murder, every instance of widespread caging of humans, every famine since the advent of modern farming, every instance of runaway inflation, and so on. Government is not accountable to you, and simply does not exist to help you.

  • -9
S.Peelman VAMatt (on 23 December 2023)

Would you prefer a world with no government (at all)? Just curious.

  • +3
VAMatt S.Peelman (on 23 December 2023)

Possibly. But, to be honest, we are so far away from that point that I don't spend a lot of time thinking about it. I wouldn't argue with the anarchist label. But, I prefer to call myself a hardcore libertarian. Governments exist, and it appears that will continue to be the case for the foreseeable future. So I'm not out here actively advocating for the end of government. But, I am actively advocating for rolling just about anything back, and especially not adding any further intervention of any kind.

  • -1
burninmylight VAMatt (on 23 December 2023)

How do these new laws benefit the Chinese ruling body?

  • -1
VAMatt burninmylight (on 24 December 2023)

They further entrench the state in the lives of the people and the business community. They further desensitize the population to nanny state control.

  • -1
LivncA_Dis3 (on 24 December 2023)

Ah china with their authoritarian ways gotta love it.

  • +1
Zeruda-Hime (on 24 December 2023)

"Online games will now be banned from giving players rewards from logging in every day, if they spend money on the game for the first time".
Pokemon Unite : πŸ‘πŸ‘„πŸ‘
Anyway, i don't play Pokemon Unite everyday but just the time necessary to be Master every season but, as i know, chinese versione has more costumes for the characters and more functions.πŸ˜…

  • +1
hellobion2 (on 25 December 2023)

oh noooooooooooo

  • 0
LurkerJ (on 22 December 2023)

Surprised by the comment section here, so it's ok to buy physical games and be addicted to that but if it's in-app purchase then it's deemed evil worthy of over regulations? I don't get it, what's next, limit how many hours I can play per day?

  • 0
Ayla LurkerJ (on 22 December 2023)

That would also create a healthier population. We all know it. Far too many people spend all their free time playing video games.

  • -1
Shatts LurkerJ (on 22 December 2023)

Yes because most physical games have an end with content. These f2p games focuses on keeping the player through tedious grinding, multiple updates, and making them spend money. Not the gameplay or experience. In-app purchases doesn't have a limit either, which definitely requires restrictions.

  • +13
VAMatt LurkerJ (on 22 December 2023)
  • -16
Jumpin LurkerJ (on 22 December 2023)
  • -12
Random_Matt (on 24 December 2023)

There is a tencent employee within the comments.

  • -1
NarimanZ (on 26 December 2023)

Its funny how western people still believe in their democracy and free will after Palestine genocide. you bring Palestinian flag to any govermanetal place and see the democracy with your bare eyes. democracy is just an illusion. you think you have democracy because you still dont have significant disagreement with goverment. as soon as your interest have significat disagreement with your goverment all this democracy things become jokes. but problem is you are the last person to understand and wake up

  • -5
Draconidas (on 22 December 2023)

The beauty of communism.

  • -6
VAMatt Draconidas (on 22 December 2023)

Yup. Beauty is in the eye of the (state), I suppose.

  • -9
Comment was deleted...