China recently updated their policy for online gaming and it has sent the whole gaming industry of the country into a downward spiral financially. The new measures that have been revealed for managing online gaming have caused the Tencent Games stock to plummet by 16%, which caused an overall loss of $80 billion for the industry. Learn more below.
As reported by Bloomberg, On Christmas day, China approved 105 domestic games, however, they also imposed some new restrictions on the industry too. These new rules have been created to manage online gaming in a better manner and also bring down the spending by adult players on gaming. As a part of the restrictions, China wants rewards such as daily logins, first-time charges, or continuous recharges to disappear. On top of that the probability for receiving rewards through random draws should be higher, to decrease the expenditure by players.
These new restrictions had an impact on the investors and the major players of the country that incurred the losses were Tencent and Netease. According to a recent X post (formerly Twitter) by The Kobeissi Letter, Tencent’s stock suffered a crash of 16% within the announcement of the new policy. This led to the largest one-day drop for the company since 2008 and they ended up losing $55 billion of their market cap.
Also read: China: Gaming Restrictions Might Not Have Changed Youth Behaviour in Reducing Total Playtimes, Says Latest Research
Tencent’s New Patent Will Let Players Watch Streams While Gaming
As spotted by Exputer, a new patent by Tencent Games has surfaced online. This patent has been titled, “Combined System for Game Live-Streaming and Gameplay”. According to the description, this new patent will allow players to watch live streams of the game they are playing while being in-match. The live stream will be shown to the player through a “picture-in-picture view”. Stream snipers are going to love this one.
Continue reading: Google Had Plans to Purchase Epic in Partnership with Tencent According to New Documents; Epic CEO Talks About Google’s Control Over Android Apps
