Under 2019 rules, under-18s were allowed to play games for 1.5 hours a day on most days.
"There are over 110 million minors that play video games in China today, and we expect the new limits to lead to a decline in the number of players and a reduction in the amount of time and money spent in game by those under 18," Daniel Ahmad, senior analyst at Niko Partners, said.
"However, we do not expect the decline in spend to have a significant material impact on the bottom line of game companies given limits on time and spending have already been in place for minors for the past two years. Therefore, we expect a softer impact on overall growth rates as spending among minors was already low."
has previously stated that 2.6% of its gaming receipts in China is from players under 16. It's unclear how much of that is tied to online gaming revenue.Tencent said in a statement on its WeChat account that it will implement the new requirements and that it supports the new rules. The Chinese gaming giant has taken measures to pre-empt the regulators in recent months. In July, Tencent
a requirement for gamers to do a facial recognition scan on their phone to verify if they are an adult.For a long time, Beijing has been worried about gaming addiction amongst the country's youth. Gaming consoles were banned for around 14 years until 2014. And a state-affiliated publication ran an article this month
and calling for further restrictions. The article was taken down and later republished with a new headline and references to "opium" removed. But it raised concern among investors that further gaming restrictions could come.
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