Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chinese teens vent at new gaming limits as investors weigh impact on industry

Stock MarketsAug 31, 2021 06:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A logo of Tencent is seen at its booth at the 2020 China International Fair for Trade in Services (CIFTIS) in Beijing, China September 4, 2020. REUTERS/Tingshu Wang 2/2

By Brenda Goh

SHANGHAI (Reuters) -Young Chinese gamers took to social media to express their outrage at new rules that limit their gaming time to just three hours per week, while investors fretted about the long-term impact on the industry.

Authorities argue the restrictions https://www.reuters.com/world/china/why-how-china-is-drastically-limiting-online-gaming-under-18s-2021-08-31 are necessary to stop growing gaming addiction and the People's Daily, the ruling Communist Party's official newspaper, said the government had to be "ruthless" as online games impair normal study life and the physical and mental health of teens.

The curbs are part of Beijing's efforts to promote the primacy of socialism and strengthen controls over society it now views as having become too lax after years of laissez-faire growth for the tech sector and other industries.

Young gamers were, however, angry.

"This group of grandfathers and uncles who make these rules and regulations, have you ever played games? Do you understand that the best age for e-sports players is in their teens?" said one comment on China's Twitter-like Weibo (NASDAQ:WB).

"Sexual consent at 14, at 16 you can go out to work but you have to be 18 to play games. This is really a joke."

While the hit to gaming stocks was relatively measured as children do not provide much revenue for gaming companies, analysts noted that the implications for the long-term growth of the industry were much more severe.

"The root of the problem here is not the immediate revenue impact," said Mio Kato, an analyst who publishes on SmartKarma. "The problem is that this move destroys the entire habit-forming nature of playing games at an early age."

There was also relief that the regulations did not go further.

"What the industry is really afraid of is if the government stops approving new games like they did in 2018," said a Beijing-based private equity investor, referring to a nine-month period when China suspended approvals of new video game titles as part of an overhaul of the regulatory bodies that oversee the sector.

"The new policy is not the worst thing that could have happened," said the investor who declined to identified given the sensitivity of the topic.

ONUS ON GAMING COMPANIES

Shares in Tencent, the world's largest gaming firm by revenue, initially slid but ended up 3%, with analysts noting it had already imposed additional limits on gaming for minors earlier this month.

Krafton Inc, a South Korean company that earns fees by providing services for a similar game to its blockbuster "PlayerUnknown's Battlegrounds" (PUBG) to Tencent, finished 1% lower.

Tokyo-listed Nexon and Koei Tecmo joined NetEase (NASDAQ:NTES), which is traded in United States and Hong Kong, in losing more than 3%.

The new rules place the onus on implementation on the gaming industry and are not laws per se that would punish individuals for infractions. Kids can often circumvent rules that require the use of their real names and national identification numbers when signing into games by using the login details of adult family members.

"This is a family education issue, not a gaming issue," said a 17-year-old gamer who wanted to be known only by her surname Luan.

But some parents like Li Tong, a hotel manager in Beijing with a 14-year old daughter, were heartened by the new rules.

"My daughter is glued to her phone after dinner every day for one to two hours and it's difficult for me or her mother to stop her," he said.

"We told her it's bad for her eyes and it's a waste of her time, but she won't listen."

Chinese teens vent at new gaming limits as investors weigh impact on industry
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Al Gore
Al Gore Aug 31, 2021 3:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
muh gyna muh weegur
IceIce Baby
IceIceBaby Aug 31, 2021 2:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ha-ha-ha. Poor kids. I wonder where the frustration over living in a dictatorship will release steam in them if not in gaming.
Kaveh Sun
Kaveh Sun Aug 31, 2021 2:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
R those Chinese parents so incompetent to control their kids from playing games?
frankie cheah
frankie cheah Aug 31, 2021 2:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will see how competent the Chinese kids comparing to the others. Answered lies is in near future.
Don Rupley
Don Rupley Aug 31, 2021 2:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
frankie cheah  Hopefully more competent than you in your response. Kaveh is referring to the parents.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email