As first reported by Reuters, China's video game regulator issued 45 foreign games publication licenses for release in the country on Wednesday, Dec. 28, considerably loosening the industry's grip over the past 18 months.
China's video game regulator, the National Press and Publication Administration (NPPA), has granted 45 publishing licenses to foreign video games. This rare move will allow them to be released in the country.
Sudden Shift
SCMP reported that in August 2020, Beijing had paused the game approval process, halting the distribution of new games in the country. People thought this was a significant setback for China's video game industry, which used to be one of the biggest and most profitable in the world.
However, the suspension did not constitute a total ban on video games in China. While the Chinese government halted the game approval process, gamers could still access and play previously approved and launched games. While still detrimental to the industry, this approach allowed the government to target specific issues without entirely shutting them down.
This recent shift signals the end of Beijing's 18-month crackdown on the video game industry, which saw the suspension of the game approval process in August 2020.
The NPPA approved five games to be published by Tencent Holdings, including "Pokémon Unite" by Nintendo and "Valorant" by Riot Games. In addition, 84 domestic games were approved for December.
The suspension of the game approval process was seen as a significant blow to China's video game industry, which had previously been one of the largest and most lucrative in the world. It resulted in a considerable decline in the number of new games released in China and a drop in revenue for domestic and foreign game developers.
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The resumption of game licenses for domestic games in April was seen as a positive step towards lifting the regulatory curbs on the industry. However, it was only with the recent approval of foreign games that the industry recovered fully.
The approval of these 45 foreign games is expected to boost the Chinese video game market, bringing in new players and revenue for foreign and domestic game developers. It also marks a significant shift in China's regulatory approach to the video game industry, signaling a move towards greater openness and collaboration with international partners.
Tencent Granted Licenses
Tencent, China's largest gaming and social media company, has received its first commercial game license in over a year and a half. The permit was granted in December, along with 45 other foreign video game publishing licenses, marking the end of Beijing's 18-month crackdown on the industry.
Other imported games approved include CD Projekt's "Gwent: The Witcher Card Game" and Klei Entertainment's "Don't Starve." In addition, NetEase, ByteDance, XD Inc., and iDreamSky also received game approvals in December. However, the number of licenses granted is fewer than in previous years, with China approving 76 imported games in 2021 compared to 456 in 2017.
