China's High-Intensity Game Shutdown Policy Hits Domestic Industry

[Asia Economy Reporter Kang Nahum] China has strengthened regulations to prohibit minors under 18 from playing online games except for one hour each on Fridays, Saturdays, Sundays, and holidays, which is expected to deal a significant blow to the domestic gaming industry. Some domestic game companies have faced a 'China risk,' with their stock prices plummeting.

According to the industry on the 31st, the National Press and Publication Administration, responsible for the gaming sector in China, announced on its website the day before that minors under 18 will only be allowed to play online games for one hour from 8 to 9 p.m. on Fridays, weekends, and holidays. Gaming is prohibited for youths at all other times. Minors must undergo real-name verification procedures to play games.

Previously, Chinese authorities limited minors' online gaming time to three hours per day on holidays and one hour and 30 minutes on other days. With the tightening of gaming regulations, China has further increased restrictions related to youth.

Domestic game companies currently operating in or preparing to enter the Chinese market have been adversely affected. In particular, Pearl Abyss, which received the game license (permission to operate games in China) for 'Black Desert Mobile' last month, faced negative news even before the official service launch.

Pearl Abyss began pre-registration for Black Desert Mobile's Chinese service on the 27th. They held a live broadcast of the 'Black Desert Mobile Presentation' in Shenzhen, China, and performed a celebratory event, raising expectations for their entry into the Chinese market. However, on that day, Pearl Abyss's stock price opened 3.92% lower than the previous day's closing price and was trading at 96,000 KRW, down 5.88%, as of 10 a.m.

A Pearl Abyss representative said, "Since Black Desert Mobile has not been officially released yet and the game's main target audience is adults, it is difficult to make a premature judgment about this situation," adding, "Currently, we are focusing on content localization and closely monitoring the situation in China."

Wemade, the developer of 'Legend of Mir 2,' considered one of the top intellectual properties (IP) in China, also faced difficulties when its stock price dropped 10.05% following a mention of 'spiritual opium' by a Chinese state media outlet on the 3rd. However, Wemade has shown signs of recovery, hitting the daily upper limit the day before due to expectations for the global success of 'Mir4.'

Com2uS, which operates 'Summoners War: Sky Arena' in China, appears to have largely avoided this recent negative impact. A Com2uS representative said, "Since Summoners War is only serviced to adults in China, the impact of China's measures is expected to be minimal."

This content was produced with the assistance of AI translation services.