China blocks gaming license approvals

It is no secret to anyone that China has quite strict regulatory measures for video games. This week Monster Hunter World was withdrawn from the market and all indications are that the problem is big and could affect other titles.

According to a Bloomberg report, Chinese regulators froze all approval of game-related licenses. The reason is a restructuring of various government departments. Also, issues related to the levels of violence in certain titles are not ruled out.

This is a major blow to the industry, which is reflected in the fall in profits of Tencent, one of the most important companies in the Chinese market. The measures mean that no new titles can be launched, affecting both small and medium-sized developers.

All of this stems from the complex and strict approval process required for games in China, as a measure to control multimedia content. The effect of the blockade can be quite significant, considering that China is one of the world’s largest video game markets.

According to the details, the Ministry of Culture and Tourism has strengthened the approval procedure in recent months. The National Radio and Television Administration, which is also in charge of the process, has been reorganized and has been blocked.

The phenomenon is already affecting Tencent, which is responsible for bringing important titles to the country, such as Fortnite and PUBG. However, there are speculations that even more companies like Activision, Blizzard and Electronic Arts could be affected by their dealings with Tencent, which distributes their respective games in China.

Some Japanese companies (Capcom, Konami, Nintendo) lost points on the stock market when this blockade became public. It is estimated that the regulation will not have a negative impact forever and that new games may be distributed later.

What are your thoughts about this strict Chinese blockade? Tell us in the comments!

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