China Resumes Issuing Game Licenses After 8 Months... Will the Gaming Industry Breathe Again?

[Asia Economy Reporter Seungjin Lee] Chinese authorities have issued new online game licenses, known as "panhuo" (game service permits within China), for the first time in over eight months.

According to foreign media on the 12th, the National Press and Publication Administration of China granted panhuo licenses to a total of 45 games. This comes more than eight months after the suspension of new panhuo issuance on July 22 last year without any explanation.

The games that received panhuo this time include "Geomang 3 Yeon-gi," "Sonyeon Samgukji," and "Mongsang Daehanghae." Among them, 39 are mobile games, five are PC games, and one is a console game, all developed by Chinese game companies.

China has continuously regulated the gaming industry. In September last year, new regulations limiting online gaming time for minors to three hours per week were implemented. Accordingly, those under 18 years old are only allowed to play games for one hour from 8 to 9 p.m. on Fridays through Sundays and public holidays.

The suspension of panhuo issuance and restrictions on gaming time dealt a direct blow not only to Chinese game companies but also to foreign game companies targeting the Chinese market. Epic Games, the developer of the first-person shooter (FPS) game "Fortnite," halted its trial service of "Fortnite" in China. Nexon's "Dungeon & Fighter Mobile" suddenly postponed its release just one day before its scheduled launch in August 2020 and was later released domestically last month.

However, with the authorities resuming panhuo issuance, cautious expectations are emerging that foreign game companies will also find some relief. Pearl Abyss's "Black Desert Mobile" will begin its open beta test (OBT) in China starting on the 26th. This is 10 months after receiving the panhuo license from the Chinese government in June last year. It is the first time since 2017 that a Korean game has been officially released after obtaining a panhuo license.

Previously, Pearl Abyss reportedly conducted a total of three tests and a closed beta test (CBT) to provide content and services suitable for the local Chinese market. This was due to concerns over frequently changing government policies, such as the sudden postponement of the release of "Dungeon & Fighter Mobile."

A game industry official explained, "Although panhuo licenses were issued mainly to local small and medium-sized game companies, the resumption after eight months raises expectations that government regulations on the game market may ease somewhat," adding, "Since the gaming industry is well established in China, continued strict regulations will be difficult."

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