China’s recent gaming regulations have been pretty controversial, resulting in a massive price drop and losing a ton of investors. With price drops hitting a big low, China is looking to review its new rules and make changes to regain the confidence of its investors.
According to Bloomberg, Tencent’s major price drop is down to 16% while NetEase is grossed even lower to 28%. Popular social media Bilibili has also seen its prices drop down to 14% as the social media service is used by gamers.
Ultimately, all of these drops led to China losing $80 billion, which is why the country is panicking and attempting to fix its regulations. Only time will tell if this tactic ends up working, as the country has lost a ton of gaming money, but we’ll see what happens.
For those unaware, the country’s new gaming regulations limit the amount of times players can purchase microtransactions. The draft also wants daily login rewards from online games to be removed, so that players don’t play too much. This is done so that gamers won’t display “irrational consumption behavior,” though this won’t help anything.
It will be interesting to see how the country rebounds from this, as China has one of the biggest gaming communities out there. Despite numerous restrictions, the mobile market does have a ton of games for players to partake in, which is why these rules have been so controversial.
With games like Genshin Impact and Honkai: Star Rail making a huge impact, this drop in gaming stocks could affect the country’s influence big time. Granted, China isn’t the only country that wants to limit microtransactions and gaming addiction, but it’s clear that stockholders think they’ve gone too far. China will need to make some major changes to appease its shareholders and do right by their
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China hasn’t said when they will be showing their new gaming regulations, but the draft is getting reviewed.