Tencent’s plans to reinvigorate its mobile gaming portfolio may be impeded by Chinese government plans to implement regulations around online video games, following concerns about an increase in eye problems among the country’s young people.
China’s Ministry of Education said the use of mobile phones and other electronic devices are in part to blame, and suggested controlling how many new video games are allowed to be released, a CNBC report stated. It also wants to implement an age rating system and restrict the time minors can play.
The report quoted Kevin Leung, an executive director of investment strategy at Haitong International Securities, as saying the recommendations were “in line with China’s policy of putting a stronger clamp on gaming”.
Earlier this month, regulators stopped the internet giant from selling a game called Monster Hunter: World for not meeting regulatory requirements.
Following tough times in its gaming business, Tencent said that it wants to “reinvigorate our mobile game revenue growth, via initiatives including deepening engagement with our existing major titles, monetising the proven popularity of tactical tournament games, launching a broader range of games in high-ARPU categories (such as the RPG genre), and increasing contributions from publishing our China-developed games internationally”.Subscribe to our daily newsletter Back