A man plays an online game on a computer at an internet cafe in Beijing, China August 31, 2021. REUTERS/Florence Lo
HONG KONG, July 21 (Reuters) – China’s video game sector revenue fell in the first half of 2022 for the first time since data became available 14 years ago, as the world’s largest video game market continued to suffer from Beijing’s tight watch rolls.
The industry’s combined revenue fell 1.8% to 147.7 billion yuan ($21.8 billion) in the six months ended June, according to a report published by the China Audio-Video and Digital Publishing Association, a state-backed Industry group, on Thursday.
It marks the first decline since data began being published in 2008 and reflects how China’s massive gaming industry, once marked by unbridled growth, has been severely dented by Beijing’s efforts to tighten its oversight of the sector, including by reducing the number of gaming licenses. out and limit playing time for teenagers.
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The report also shows that the number of players nationwide fell for the first time, down to 665. On the same subject : Burning Music marked 20 years with 100 number 1.69 million from 666.57 million reported in December.
Chinese gaming companies domestic revenue fell 4.25% to 124.5 billion yuan. With tough regulations at home, companies turned to overseas markets for growth, where revenue rose 6.16% to nearly $9 billion in the period.
China froze approvals of new games for almost nine months before resuming them in April. However, industry giants including Tencent Holdings ( 0700.HK ) and NetEase have yet to win new licenses.
China’s moves against the gaming industry are part of a broader regulatory crackdown on broad swaths of its economy, from real estate to technology.
But authorities have changed their tune in recent months as they seek to boost an economy hurt by COVID-19 containment measures. The shift has raised hope for companies and investors that the worst is over, although jitters remain.
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Report by Josh Ye; Editing by Kirsten Donovan
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