New Gaming Regulations in China Hit Tencent, NetEase Stocks
Tencent and NetEase’s stocks are dropping at a massive rate due to China introducing new gaming regulations. Tencent’s stocks dropped around 16%, while NetEase’s fell 25%. [Thanks, Josh Ye!]
The new policies in question focus on online game management. These regulations mainly center on curbing spending in video games, specifically ones with a gacha element or a daily login. Here are some of the new policies that China is setting for its video game companies:
- Online games will no longer be able to offer rewards for daily logins. They can no longer give rewards for when players first spend money or when they spend money several times in a row.
- Games need to have a limit on how much players can spend to top up their digital wallets.
- Developers cannot offer “probability-based lucky draw features” to minors.