From Fortune:



China’s video gaming industry thought they were safe from government crackdown after an 18-month period of more friendly regulations. However, with just a week left in the year, Beijing announced new, strict rules from the National Press and Publication Administration that aim to curb the amount of time and money players spend on games online. These rules have caused significant drops in the market value of major game developers, such as Tencent and NetEase. The regulations will implement strict spending limits, bar games from revealing state secrets, and prohibit developers from rewarding daily logins or providing incentives for live-streaming games. This could be a big problem for China’s video game developers who earn revenue through a free-to-play model and small micropayments. The move has revived fears that China is once again turning the screws on its video game industry and could potentially encourage other countries to do the same. Chinese regulators will accept feedback on the new rules until Jan. 22, 2024, but it’s unclear when the rules will go into effect.



Original: Tencent, NetEase lose billions in value after China surprise gaming rules