Tencent & NetEase stocks slip on China's strictest anti-gaming measures yet
Both companies saw significant dips coming into Monday's market as China's government passed major restrictions on allowable game time.
China’s government has become one of the biggest threats to its own gaming giants by far. The continued effort to restrict playtime, game availability, and more have done financial harm to numerous companies in the video game and tech industries in China. However, the latest regulations from China’s government may be the hardest hitting yet to video game companies like Tencent and NetEase, and these restrictions appear to have caused stocks in both companies to take quite a tumble.
The Chinese government passed its newest regulations on gaming over the weekend, as reported early on August 30, 2021, by sources like video game analyst Daniel "ZhugeEX" Ahmad. According to the new regulations, minors in China are now restricted to one hour of playtime on Friday, Saturday, and Sunday, the strictest measures yet introduced in the country. Meant to curb gaming addiction, the new restrictions have had quite an effect on gaming publishers and developers like Tencent and NetEase, which make up two of the biggest forces in gaming in the country. Both also saw a significant dip in stock value on Monday, August 30, immediately following the news.
At first, NetEase saw the bigger dip in value, but it has climbed back a bit on news that it has recently reached “final negotiations” to poach Yakuza creator Toshihiro Nagoshi from a 32-year-long career at Sega.
Indeed, NetEase and Tencent may continue to turn their efforts beyond the borders of China and grow their influence in other nations, given the arguably ridiculous amount of regulation both companies are facing on their home turf. It's a matter that Tencent felt necessary to address directly in its recent quarterly reporting. Further measures are likely in the future for both companies as they seek to continue to grow despite government restrictions. Stay tuned as we continue to follow this story for further updates and information.
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replyTJ Denzer posted a new article, Tencent & NetEase stocks slip on China's strictest anti-gaming measures yet
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China moves to limit minors' video game time to only 3 hours a week, one hour a day on Friday, Saturday and Sunday. No weekday games otherwise. Not clear what the age cutoff is but expected to be 18 and younger.
https://www.wsj.com/articles/china-sets-new-rules-for-youth-no-more-videogames-during-the-school-week-11630325781
https://www.gamesindustry.biz/articles/2021-08-30-china-bans-minors-from-playing-games-during-the-week-
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Might be an attempt to make it easier to enforce.
They probably got something involving the Chinese firewall for this kind of enforcement.
Is arbitrary and very restrictive. We'll see how this plays out.-
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Still doesn't change the fact that it's stupid and arbitrary.
Eventually this might make it harder to sell games to people under the age of 18.
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National Game Hour. It's patriotic and a great way to achieve cultural harmony.
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Snitch.
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Nobody will notice their money is missing!
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Solve the 3 body problem.
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I solved that with a very nice lady last night.
It was your mom awwww yeah-
什么?
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Assemble PS5s
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This is the answer we're all looking for.
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I'm thinking it's more likely they'll have the parents do their part in enforcement.
If they don't do their patriotic duty then they might be forced to re-educate somewhere along with their kids.
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Lots of people above the age of 18 still hacking.
This will solve nothing. Might end up pissing off a lot of minors in China.
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Totally something Winnie the pooh would do.
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Frankly this is a great move and other countries should follow suit. There are no drawbacks.
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Totally agree. I'd also apply same restrictions to reading and watching TV/Movies.
Our society will be the MOST productive society. -
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Video games are a dangerous addiction and run counter to the 996 spirit
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Hey to be fair to China I think the government of China is trying to crack down on that 996 thing.
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Nah, China will frown upon it but won't do much to stop it since it's productivity. But they can use it as leverage against business leaders or companies they don't like to punish them.
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Sadly this is probably the truth.
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They put them in horse dewormer. Pretty brilliant move in my opinion.
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That would amount to progressing 100 feet per week in a Dark Souls game for me.
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Just another brick in the wall, so to speak. Friends of mine play LoL, Arena of Valor, Honor of Kings, etc. for hours upon hours each day. They'll eat bans if they play too long, and there's a cooldown before they can join servers. Applying it to minors is just an escalation of an a system that's already in place for adults. ED thinks it's a good thing, and I although I kind of agree, it's just another restriction on people's lives here; passive social engineering by the CCP.
I'm constantly thinking of an explanation for these authoritarian policies (in comparison to other conventional democracies) but this is just the way the CCP has decided to govern 1.4 billion humans. Overall, it's the onset of a dystopian hellscape but like...how else do you maintain control and avoid an absolute catastrophe? I'm not shilling here, and I'm definitely not a tankie, but it seems like the country's leadership is inevitably painting itself into a corner on the international stage to harness 18% of the global population.-
Well there might be severe economic consequences of not allowing people to do what they want with their daily lives.
Good example of this is the one child policy that China just recently revoked. They have an aging population that are not likely to consume.
Eventually China might have to literally print money to keep this from being too much of a problem but it's definitely going to be a problem. -
Another possible severe consequence of authoritarian governments is that people become less creative.
North Korea decided to solve this problem by kidnapping musicians 😂 lol-
Wait I just realized I meant people in the film industry in South Korea not musicians.
I do know North Korea kidnap people pretty regularly.
I'd provide specific examples but I just can't be bothered.-
I know what you’re talking about. But to your point about stifling creativity: there are still creative endeavors here but they’re constrained by the state, and it runs deep. Most of what I have to say about it is anecdotal but with the folks I interact with, I notice it. Specifically with kids, the concept of ‘imagination’ is different than how I understood it growing up.
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If I had to choose between living in an authoritarian government and one not quite so authoritarian I would choose the latter over the former.
There are some advantages of an authoritarian government. Such just getting people vaccinated for covid-19. That vaccine product that they vaccinate with everybody with might not be Pfizer or Moderna. So the efficiency might not be all that great but everybody will be vaccinated.
I'm mostly thinking of the Sputnik vaccine product in Russia as I type this up.
But outside of that it would really suck to be living in some country you like China. Your quality of life might be good but you may be miserable because you don't get to choose how you live your life. -
I guess what you're saying is that people in China or Russia are creative in different ways compared to people in America.
Their imagination is different and there are problem solving approaches are different from American approaches.
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Yes I see that now. Tricked once again!
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So I guess the market for single player only games is about to explode.
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Confirmed, playtime < 1 hour:
https://en.m.wikipedia.org/wiki/Winnie_the_Pooh:_Adventures_in_the_100_Acre_Wood
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China, particularly the central government, is very insecure and pushing that on everyone. Any chance they can leverage to show how they're better than others they'll take it.
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Which eventually might backfire against the government of China in some colossal fashion.
I'm thinking of some dystopian future where there's lots of jobs but nobody can accept them because they broke some law in China or they're just too old.-
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True. We'll see how this works out for the government of China in the long run.
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Maybe that's the next step?
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Man, the Chinese government sucks so much.
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