In a move that's certain to make forays into the Chinese gaming market (worth $30bn) for game developers and publishers, country regulators have launched a new wave requirements for game release approvals. Besides more and more information now being required to be submitted by developers for any game that they want to launch in China (which may include scripts, mechanisms to curb game addiction implemented into the code, and other).
While the Chinese gaming market is an extremely significant one, the previously existing (and now updated) regulations mandate that every single game be single-handedly inspected and curated before its approval into the Chinese domestic market. A freeze in the process of games approval that lasted for 8 months (from February 2018 through to December) has already created a backlog of thousands of games pending approval - not to mention all of those that have undoubtedly been submitted since. It's expected that fewer than 5,000 games will be greenlighted for launch this year, so a lot of companies will likely have to review their revenue forecast - depending on how heavily they banked on the Chinese market.
Source: Bloomberg
While the Chinese gaming market is an extremely significant one, the previously existing (and now updated) regulations mandate that every single game be single-handedly inspected and curated before its approval into the Chinese domestic market. A freeze in the process of games approval that lasted for 8 months (from February 2018 through to December) has already created a backlog of thousands of games pending approval - not to mention all of those that have undoubtedly been submitted since. It's expected that fewer than 5,000 games will be greenlighted for launch this year, so a lot of companies will likely have to review their revenue forecast - depending on how heavily they banked on the Chinese market.
Source: Bloomberg