[Updated]China set to ban gacha games from compulsive gambling practices (official in charge has been removed)

[shrike0fth0rns]

This isn't the first time the CCP has said they were going to do something like that, although this time it looks more serious, so I'll just wait until the bill ACTUALLY passes.

Last time they got aggressive and cracked down on big tech tencent lost 100 billion dollars and still haven’t recovered fully. They’ve lost 50 billion so far within hours of the announcement of these new regulations. If these new regs become law I can see tencent about very aggressive and going on an acquisition spree in the U.S ( where it will face have regulator scrutiny if they try to buy anything big), Europe and Japan. All the investment and buying shares in western devs was laying the groundwork for this type of scenario. Tencent owns like majority stakes in a dozen game corporations and minority stakes in a dozen more notably including epic, ubi, remedy, shiftup, from, krafton.

 

[Yurinka]

I don't understand why Sony is launching initiatives in China. Why not South Korea and Japan? Stable countries.

Because China is the biggest gaming market in the world in terms of revenue and amount of players and has important growth, and because both western and Asian AAA teams hire Chinese outsourcing teams to codevelop their AAA games. They also have top mobile and PC gaming companies and platform holders, so there's a lot of talent there.

It's a very appealing market, where they will want to grow partly with the help of local talent. And after their big success with the Genshin Impact deal, I assume they want to repeat it with potential similar cases.

As I remember, after the launch campaign China became their top 6 country, while for the same period was top 11 for PS4. There's a lot of potential growth there.

Regarding Korea and Japan, Sony already signed deals with multiple top companies from Korea and Japan. Recently announced deals with NC Soft (top Korean company) or Akatsuki (top Japanese mobile gaming company).

 

[Gamernyc78]

Because China is the biggest gaming market in the world in terms of revenue and amount of players and has important growth, and because both western and Asian AAA teams hire Chinese outsourcing teams to codevelop their AAA games. They also have top mobile and PC gaming companies and platform holders, so there's a lot of talent there.

It's a very appealing market, where they will want to grow partly with the help of local talent. And after their big success with the Genshin Impact deal, I assume they want to repeat it with potential similar cases.

As I remember, after the launch campaign China became their top 6 country, while for the same period was top 11 for PS4. There's a lot of potential growth there.

Regarding Korea and Japan, Sony already signed deals with multiple top companies from Korea and Japan.

This! They are aiming at India to and its large, explosive population.

 

[Yurinka]

This! They are aiming at India top and I Dia has an explosive population.

Yes, India is a similar case: like China they have a huge population who mainly plays on mobile and PC and even if in their case the gaming market is smaller in terms of revenue is the fastest growing one.

Like China, they also have studios from AAA publishers and outsourcing teams who often work for AAA games.

By supporting and partnering with local teams, Sony aims to make their console more popular there and find some new local gem, plus also to set a base for their growth in PC and mobile there with the help of local teams.

 

[Systemshock2023]

Not a fan of bans and restrictions. Seems to be an extremely dumb move that harms business, but commies love to do that.

 

[Gamernyc78]

Not a fan of bans and restrictions. Seems to be an extremely dumb move that harms business, but commies love to do that.

There seems to be no equilibrium in any country, it's always an extreme.

 

[Johnic]

The same games Sony's investing in over there?

 

[BroodCorp]

Gambling is way too accessible now.

 

[Yurinka]

The same games Sony's investing in over there?

Yes. Most of these gatcha oriented things don't affect Sony, but affects mainly the top Chinese platform holders and publishers (Tencent or Netease).

The only thing affects Sony is that new games submitted for approval must be processed within 60 days (now they took many months without approving a new game).

Most of the other things already were implemented or don't affect much them. I think the only thing that would affect many f2p games there is the phohibition of daily rewards.

And well, now demand to have servers in China, I assume to protect them from foreign goverments spying them or something. But big online gaming companies already have servers in different regions and nothing to hide (maybe some US one is an exception?), so that wouldn't be an issue.

 

[Yurinka]

Seems that it was a draft, and after the obvious controversy from companies and players plus its effect in the stock market they removed it.

I asked a contact I have there -a Spanish guy who lives there since many years ago and makes youtube videos- for clarification.

Regarding China as a gaming market. It's the biggest country for mobile and PC, but in console only has the same size than Japan regarding userbase:

https://gcdnb.pbrd.co/images/579Dx27o9fJg.png?o=1

 

[Zzero]

Not a fan of bans and restrictions. Seems to be an extremely dumb move that harms business, but commies love to do that.

To me its little different from the bans on gambling that most American states have. I see nothing wrong with those provisions. Now the ones about banning "forced PVP", mandated server locations, bans on tipping, etc. And, indeed, the closed nature of the regulatory aspects of China's gaming industry (and governance in general). Those are all the bad parts of gaming/living in China.

Anyways, all of China's biggest game companies are aware of the wobbly ground they are on and have been for years now, its why Mihoyo set up Hoyoverse, why Tencent has invested in all of those non-Chinese companies, why NetEase has formed or purchased no fewer than 13 non-Chinese "traditional-style" game studios over the past two years, etc, etc.

 

[anonpuffs]

I do think these regulations will go through in some form but probably watered down a bit. It isn't the first time china has forced video game makers to comply with their rules.

 

[historia]

I for once like the CKS. Unbelieveable.

 

[anonpuffs]

Update: the official in charge has been removed

reuters link

HONG KONG, Jan 2 (Reuters) - China removed an official at a government body overseeing its press and publications regulator, five sources who were briefed on the matter said, days after Chinese gaming stocks were hit by proposed rules to curb spending on video games.

Feng Shixin was removed last week from his position as head of the publishing unit of the Communist Party's Publicity Department, the sources said. The department oversees the National Press and Publication Administration (NPPA) which in turn regulates China's vast video games sector.

China's State Council Information Office, which handles media queries on behalf of the Chinese government, including on personnel matters, did not immediately respond to a request for comment and Reuters was unable to obtain Feng's contact details to reach him for comment.

The five sources said Feng's removal was linked to rules the NPPA announced last month that sent stocks in the world's largest video games sector, including industry giant Tencent (0700.HK), plunging.

The sources declined to be identified as authorities had yet to officially announce Feng's departure.

 

[TubzGaming]

Update: the official in charge has been removed

reuters link

Added to OP and title updated

 

[Gamernyc78]

Update: the official in charge has been removed

reuters link

Good update. Alot of things can change now.