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"There's already been changeover in leadership in the past few months in the new agencies. Meanwhile, gamers are still avid, and games are still hot."

Chris Kerr, News Editor

September 13, 2018

2 Min Read

Regulatory changes are stopping developers from releasing games in China, which is understandably a concern given it's the single largest video game market in the world. 

Worryingly, a report from the South China Morning Post earlier this week suggested the licensing freeze impeding devs might even last for another six months -- but some experts believe it's unlikely to take that long. 

Niko Partners' analyst Lisa Cosmas Hanson -- a specialist in the Asian video game market -- claims the country could in fact start issuing new licenses sooner rather than later, and that the six month timeframe is the very longest it could possibly take.

"People are speculating that the hold on new game licenses will last another six months. The reason they say that is because the new agencies have six months to complete their reorganization process and get back to work," she commented.

"But, it is unlikely that they will hold off on wielding their power for a full year. These agencies want to exercise power and issue licenses - that is their mandate."

China claims to be clamping down on video games in an attempt to stamp out myopia (short-sightedness) in children and teens, and is restructuring its government and revamping regulations in order to do so. 

As part of the shake up, the Communist Party's propaganda department will reportedly handle all game licensing moving forward, though the ramifications of such a move won't be clear until the change is set in stone.

"The reshuffling of power looks to be heading in the direction of granting all games licensing authority to the Central Propaganda Committee's newly formed State Administration of Press & Publication, and taking it away from the Ministry of Culture (which has been changed to the Ministry of Culture and Tourism)," she added.

"Yet until games are actually licensed again, we will not know for certain. This is not a ploy against Tencent. This is not a staunch stance against South Korea. This is about a changing of the guard, for a reason unknown to us, and we need to wait and see.

"Meanwhile, games are granted greenlight month-long commercial testing licenses and Chinese gamers are still devoted to spending time and money on PC and mobile games."

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2018

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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