The world’s biggest gaming market has put into disarray as the Ministry of Culture and Tourism has made the process of getting any game to be released in the China market more stringent as the agencies involved have been going through a series of personnel changes and restructuring earlier this year as the part of President Xi Jinping consolidated power.
Regulators have shown concerns over the amount of violence and gambling systems that are implemented and released in the China market currently. There are no exception to this gaming freeze as well as Gaming Giant Tencent await approval for many of their games that are ready for release.
To shed more light on the matter, the gaming industry in China currently sits at around $32.5 Billion annually and with this report, Tencent has shed almost $160 million in their market value, as the smaller players struggle to survive without releasing new games into the market.
Not only Tencent but many major game developers has felt the effect of this shutdown as companies like Netease, Capcom, Blizzard has seen their stock drop anywhere from 2% – 5%.
China is notorious with their obsession of control, they’ve implemented this approval process a couple of years back in which i have blogged about and this approval process can take anything from 2 – 3 months. Nobody really knows when this freeze is going to end and Developer and Publishers are impatiently waiting for anything to come out of the Ministry of Culture and Tourism on the next steps.
Let’s hope it happens early than later.