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This is a huge blow to the gaming industry in China that rely on loyal players and subscribers. But is this an attempt to regulate children’s exposure to “specific types of video games?”. On the other hand, is this an attempt to regulate children’s media exposure as a whole in China? In 2021 there over 110 million minors playing video games in China. It’s expected that this number will decline due to the reduction in time they’re allowed to play, which will also influence money spent by these players under 18. https://www.cnn.com/2021/08/31/tech/china-ban-video-games-minor-intl-hnk/index.html

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In 2019, there were limits restricting play to 90 minutes a week for children. Authorities state that these new restrictions were created to attempt to prevent young people from becoming addicted to video/online games. They also stated that placing these specific restrictions will protect the healthy growth of minors in China. In reaction to this, investors such as NetEase (NTES) declined 3.4% during trading hours in New York Monday the 27th.

This may also impact the industry of eSports in China. Its the international gaming competition (Olympics) for online video gamers. If minors are limited to the amount of hours they are allowed to play, the momentum for this event could die down, impacting China’s economy. On the other hand, they are paying close attention to the potential behavior changes for children/adolescents after exposure to these games. Attempting to get ahead of the “problem” they see for their citizens. Will Chinese kids find a way around this restriction? And play video games as normal? What does the enforcement of these new restrictions look like?

” There are over 110 million minors that play video games in China today, and we expect the new limits to lead to a decline in the number of players…”

– Danial Ahmad