“The removal of these incentives is likely to reduce daily active users and in-app revenue, and could eventually force publishers to fundamentally overhaul their game design and monetisation strategies,” said Ivan Su, an analyst at Morningstar.
Pop-ups warning users of “irrational” playing behaviour are also set to come into force.
Knock-on effect
China is the world’s largest gaming market, and Tencent is the global leader in the sector in terms of revenue. The company dominates the Asian market and has invested in game studios across the world.
Following the NPPA announcement, Tencent’s share price fell by 12.4%.
Tencent Games’ vice president Vigo Zhang said Tencent would strictly implement any new regulatory requirements. The new draft rules have not veered from regulators’ ongoing focus on ensuring companies have “reasonable business models and operating cadence”, he said.
He added that minors have been spending a historically low level of money and time on Tencent’s games since 2021 when protection of younger players became a focus for Beijing.
