After the market declined by $80 billion, China altered the regulations in the video game sector, easing them
In China, 105 video games from local publishers, including projects by Tencent Holdings Ltd. and NetEase Inc., have been approved. Bloomberg reported this development.
The Chinese government took this step after the country's regulatory body recently introduced new rules limiting expenditures and rewards that incentivize players in video games. According to the new regulations, gamers cannot be rewarded for daily logins, initial expenditures, or consecutive spending.
These new rules immediately impacted the country's video game industry. Tencent Holdings' shares dropped by 16%, while NetEase's fell by 25%. As a result, the industry suffered an immediate loss of $80 billion in market value.
As a response, the Chinese regulator listened to all sides to improve the rules. The approval of 105 video games in China is seen as a sign that the government has decided to soften its stance regarding the new regulations.
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