Tencent tumbles as China curbs gaming to 1 hour per day and freezes new titles
Chinese conglomerate Tencent has taken a battering after authorities declared that they would be introducing a fresh round of restrictions designed to both limit gamers. As a result, daily gaming hours and the volume of available online games will be reduced.
Tencent tumbles as China curbs gaming hours and titles
The pincer movement sent shares in Tencent, now the largest video game company in the world, sliding 5% as investors fretted at the potential impact of moves to curb video game addiction in the country. Analysts fear that a tightening regulatory noose will further restrict Tencent’s ability to monetise, an area it was already struggling in before the latest curbs.
The Chinese crackdown comes on top of a month-long freeze in new game approvals as authorities seek ways of encouraging more outdoor activities, further singling out China as having the tightest game approval processes on the planet.
In a statement Chinese regulators said: “Parents should minimize the use of electronic products when they are with their children. The use of electronic products for non-learning purposes should not exceed 15 minutes and should not be more than one hour per day.”
Regulators are motivated by a desire to arrest rising rates of myopia among children and teenagers although it is unclear how exactly such limits can be enforced without parental supervision.
Last year Tencent joined Alphabet, Amazon and Facebook with a market valuation in excess of $500bn.
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Tencent Holdings Limited is a Chinese multinational investment holding conglomerate whose subsidiaries specialize in various Internet-related services and products, entertainment, AI and technology both in China and globally.Find out more