Bad news from China. The stop of video game licensing, which began in March, is being delayed. There is a high probability that the Chinese authorities will not allow the publication of any new games in the country for the next six months.
This is reported by the South China Morning Post with reference to a government source. It also notes that the situation around licensing is settling down. It became finally clear who in the country will be responsible for this process.
Recall that before the reform, gaming licenses were given by the State Administration for Press, Broadcasting, Cinematography and Television (SARFT). Today it has been reorganized into the Administration for National Radio and Television. The games themselves were previously registered by the former Ministry of Culture, which today is called the Ministry of Culture and Tourism.
Now the right to issue a permit is in the hands of the Propaganda Department of the Central Committee of the Communist Party. Their official representation in the Government, the newly organized State Administration for Press and Publication Affairs (SART), is responsible for working with third parties. The latter will also control the number of online games on the market, control the number of new video games operated online, work on a rating system and take measures to limit the time that minors spend on games.
The Propaganda and SART Department just needs another four to six months to complete the new licensing system and related documents. This means that the Chinese market is going to have a difficult time in the near future.
The freezing that has been going on since March has already hit the market. According to the South China Morning Post, the Chinese gaming market in the first half of the year showed the lowest dynamics over the past decade. The central regional player, Tencent, saw its profits fall for the first time since 2005 due to a change in the regulator. This is despite the fact that the company, like other local publishers, had a “cushion”. Publishing licenses in China were usually obtained three to six months before the release. In other words, they had something to publish in the summer. Now this pillow is no longer there. And they cannot influence the situation in any way.
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