Online gaming for children is very beneficial because it entertains them. But, at the same time, it also has some side effects. So, to avoid its side effects, China has announced for those under 18 years to play online for only three hours a week.
Over 110 million children play video games in China today, and according to senior analyst Daniel Ahmad of Niko Partners, “we expect the new limitations will lead to a fall in the number of players and a reduction in the amount of time and money spent in games by those under 18.”
“However, given that time and spending restrictions have already been in place for minors for the previous two years, we do not anticipate the drop in spending will impact gaming firms’ bottom line significantly. Therefore, given that spending by young people was already low, we expect a minor effect on overall growth rates.
The new regulations, released on Monday, represent a significant turn by Beijing to tighten control over its society and critical economic sectors, including tech, education, and real estate, following years of unchecked expansion.
The limitations applicable to all devices, including phones, are a death blow to the global gaming business, which serves tens of millions of young gamers in the most profitable market in the world.
According to the state news agency Xinhua, they only let under-18s play for an hour each day, from 8 to 9 p.m., on Fridays, Saturdays, and Sundays. On vacations, they can also play simultaneously for one hour.
A further crackdown by Beijing on China’s digital titans, including Alibaba Group (9988. HK) and Tencent Holdings, coincides with the regulations from the National Press and Publication Administration (NPPA) (0700. HK).
Tens of billions of dollars have been lost from shares sold domestically and overseas due to the push to stop what the state media has dubbed the “savage rise” of some corporations.
Teenagers represent the nation’s future, a spokeswoman for the NPPA reported by Xinhua as stating. In the age of national rejuvenation, cultivating the younger generation is essential, and protecting minors’ physical and mental health is connected to the people’s vital interests.
According to the regulator, who is in charge of the nation’s video game industry, gaming businesses would be prohibited from offering services to minors in any way outside of the allotted hours and must make sure they have placed real-name verification procedures in place.
Before 2019, China set a time limit of 1.5 hours per day and 3 hours per day on holidays for children under 18 to play video games.
On Weibo, China’s equivalent of Twitter, the new regulations quickly rose to the top of the most talked-about subjects. While some praised the regulations, others were shocked by how strict they were.
One remark, which earned over 700 likes, read, “This is so ferocious that I’m totally stunned.”
But, at the same time, some people said that the restrictions might be brought fruit and we achieve our desired goal.