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 ViewsChinese 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.
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βOnline 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.β
A lot of Chinese game regulations are questionable but this is not one of them. This ought to be emulated globally
I prefer less government over-lording and more free will, myself. lol
RIP Diablo Immoral lol
The restrictions described here are actually good, they target predatory tactics. More countries should limit these tactics.
Except for the digital wallet thing they're only limiting companies business tactics here, not individual freedoms.
Do you actually believe that? It is completely illogical.
Lol yeah I believe it since it's actually the case
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.
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.
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.
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 addictionβ¦β¦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.
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.
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.
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.
How do these new laws benefit the Chinese ruling body?
They further entrench the state in the lives of the people and the business community. They further desensitize the population to nanny state control.
Ah china with their authoritarian ways gotta love it.
"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 : πππ
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.π
oh noooooooooooo
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?
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.
There is a tencent employee within the comments.
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
The beauty of communism.
Yup. Beauty is in the eye of the (state), I suppose.







