The undeniable surge in video gaming’s popularity is evident, with a significant portion of global internet users dedicating substantial time and resources to this activity. The widespread accessibility of video games across various platforms—consoles, PCs, and mobile devices—has led to a notable increase in the investment of time, money, and resources in gaming. While this trend benefits the gaming industry, it also holds implications for other aspects of daily human life.

China’s approach to video game regulation has undergone significant evolution. The initial imposition of a one-hour playtime limit for minors in 2021 was a drastic measure, but the recent emphasis on curbing in-game incentives signifies a shift in strategy.

According to a report from the South China Morning Post, draft rules published on Friday by the National Press and Publication Administration (NPPA), an industry regulator, declare that online games are prohibited from offering rewards that encourage excessive play and spending. This encompasses incentives for activities such as daily logins and additional funds added to user accounts.

The National Press and Publication Administration (NPPA) mandates that all video games enforce a limit on the amount players can add to their accounts, coupled with alerting users about “irrational consumption behavior” through a pop-up window. This proposed regulation swiftly led to a sell-off of shares in major Chinese video gaming stocks by investors.

Commenting on the development, The BBC notes that China stands as the world’s largest gaming market, with Tencent holding the global leadership position in terms of revenue. Tencent, a company that dominates the Asian market and has made strategic investments in game studios worldwide, experienced a significant drop in its share price by 12.4% following the announcement by the NPPA.

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