On August 30th, China enacted new regulations that limit minors to three hours of video gameplay each week. This comes after a state-published article described gaming and esports as “spiritual opium”.
According to the new rules, Chinese children under the age of 18 will be limited to one hour of gaming three days a week. Minors are permitted to play video games from 8:00 PM to 9:00 PM on Fridays, Saturdays, and Sundays. They are also allowed to play at the same time during public holidays.
“Teenagers are the future of our motherland,” said an unnamed National Press and Publication Administration (NPPA) spokesperson. “Protecting the physical and mental health of minors is related to the people’s vital interests and relates to the cultivation of the younger generation in the era of national rejuvenation.”
These are not the first video game restrictions created by China. In 2019, rules were launched that limited minors to gaming for at most 1.5 hours a day.
The Profit‘s Take:
This is going to hurt the global gaming industry, undoubtedly. More importantly, though, this effectively kills the gaming industry in China. There is no future for gaming in China. Anybody that’s investing there right now is going to lose their shirt. The risks are so high. It makes absolutely zero sense to be investing in Chinese video game businesses moving forward.
(All information was provided by Reuters)