Following the new China gaming regulations that took the industry by surprise, there are now some reviews of the regulations. These reviews now lift the restrictions on 105 domestic games, and this will help the gaming industry to keep growing. So gamers who play any of the domestic gaming titles that China lifted the restrictions on will no longer have limitations on their spending while playing.
Most of the domestic gaming titles that China lifted the restrictions for are from Tencent Holdings Ltd. and NetEase Inc. Gamers will now be free to spend as much as they want while enjoying the titles from these developers. Both Tencent Holdings Ltd. and NetEase Inc. are some of the biggest domestic developers in China’s ever-growing gaming industry.
The easing of these regulations came in time as both Tencent Holdings Ltd. and NetEase Inc. saw a major plunge in their revenues. This came after the new China gaming regulations went into effect on Friday. China did well to listen to the cries of its domestic game developers for help as their stocks in foreign markets were toppling.
The reason for the plunge is that most developers rely on in-game purchases to make a profit. Investors in the games hit by the new China gaming regulations were quick to pull out their financial backing to avoid running at a loss. Now that the regulations are easing off, some of these investors might return to the likes of Tencent Holdings Ltd. and NetEase Inc.
However, this might take some time to happen as most investors might still be afraid of another regulation. With time, these investors might make a return, hence boosting the shares of domestic game developers in the Chinese region. Until then, gamers are now allowed to make in-game purchases and receive their gaming rewards on titles from Tencent Holdings Ltd. and NetEase Inc.