Teenagers negotiating with their parents over how much time they can spend playing video games is often a fraught process. Beijing’s draconian restrictions take the argument up a notch. Watchdogs want gaming time for under-18s cut to just three hours per week. The announcement sends a threatening signal to China’s lucrative game industry.
About two-thirds of Chinese teenagers play online games. Minors are only supposed to play from 8pm to 9pm on Fridays, weekends and public holidays. Beijing says that this prevents gaming addiction, which it blames for increased nearsightedness and poor academic performance.
Clamping down further will deal an immediate hit to game makers’ revenues. For the big game companies such as Tencent, it will be manageable. Sales to minors contribute less than 3 per cent of local revenues. Longer term, however, restrictions may threaten player loyalty — the foundation of the $40bn local gaming industry. Game creators rely on starting players at a young age. Shares in NetEase, which gets three-quarters of its sales from games, are down 30 per cent from a February peak.