Video games do not exist in a vacuum. They are already a huge industry that has to respect laws and regulations in different parts of the world. This can bring you several benefits, but it can also severely affect you. The proof is in China, a country where 14,000 gaming companies have closed in recent months due to decisions by the authorities of that country.
9 months ago, the Chinese government froze approvals for new video games in China. As a consequence, since July 2021, the country has not approved the sale of any new title in this country.
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It is a decision that has severely affected the Chinese video game development industry, who have been unable to publish their creations. As a result, thousands of developer studios have gone bankrupt and more are expected to follow suit during 2022.
According to figures from Securities Daily, a Chinese government news organization, this situation has led to the closure of 14,000 development studios. This number is in addition to the 18,000 video game companies that closed their doors in China during 20220.
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The law puts the foot to the gaming in China
Gaming is going through a difficult time in China. In addition to the government ceasing to approve games for sale, measures have also been put in place to prevent children from playing. According to the law, minors cannot play during the week and can only enjoy this pastime for one hour on Fridays, Saturdays and Sundays.
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Given all these measures, it is not surprising that companies like Tencent are betting on the Western market. We remind you that this gaming giant has invested millions in recent years to own several development teams that have their headquarters in this part of the world.
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