Patcay.com – The Chinese government released draft regulations last week aimed at tightening regulations on online gaming activities in the country.
One of the key points in these new regulations is the prohibition of online games offering incentives or rewards for daily purchases or logins.
The National Press and Publication Administration, the regulatory body, also stated limits on the amount users can top up and issued warnings against “irrational consumption behavior.”
Shares of Tencent, China’s largest gaming company, initially plummeted by 16 percent following the Chinese government’s announcement before recovering and closing 12 percent lower last week.
Meanwhile, its competitor NetEase saw a loss of around 25 percent after the announcement of the game activity restrictions.
For gamers, it’s not uncommon for popular games to offer daily login rewards for players who consistently log into the game every day. These rewards, often in the form of in-game items, typically require players to log in consecutively for a specific period to claim them.
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In recent years, the Chinese government has been tightening regulations on the gaming industry, including its players. A study released in China last year claimed that strict regulations in the country’s gaming sector had successfully reduced issues related to online game addiction.
This report was published by The China Game Industry Research Institute in collaboration with several other departments in the “2022 China Game Industry Progress Report on Protection of Minors.”