China Online Games Ethics Committee: No Approval For Tencent in 2019

China Online Games Ethics Committee: No Approval For Tencent in 2019

China Online Games Ethics Committee: No Approval For Tencent in 2019

China Online Games Ethics Committee: No Approval For Tencent in 2019

The China Online Games Ethics Committee (COGEC) has already released its approval of 80 new games. However, none of them are from the Chinese game developer Tencent Holdings Ltd.

With this move, the world’s largest publisher of video games could be hurt even more. This move already incurred enormous losses in 2018 due to the implemented freeze on new game titles. Amidst all these, the move has already been lifted, and Tencent may not be able to stand up just yet.

According to Business Insider, the company lost at least $200 billion as its share price made a dip of about 30 percent, which started when COGEC decided to freeze the release of new video games in March 2018.

The decision was mainly influenced by the number of criticisms which alleged that such could cause addiction and myopia among young gamers. Some of the games’ themes reportedly promote violence as well, Reuters reported.

With the regulatory decision of China, being the largest market for video games all over the world, Tencent is now suffering the consequences.

Earlier in December, the committee was formed to ensure that the country’s citizens, especially the young ones, are being protected from any unhealthy entertainment product. Thus, the China Online Games Ethics Committee was born.

The entertainment industry is a multi-billion economic driver in China. The gaming industry alone is already proving itself as a massive economic driver.

According to the state-run news agency, Xinhua, the country’s online gaming market is already worth 235.5 billion yuan, or around US$34.3 billion, based on the Cyberspace Administration of China’s data.

Amid this growing trend, the Chinese government had to do something to mitigate its unpleasant impact. The gaming addiction, which the World Health Organization cited as a mental disorder, and the harmful content of some video games were the primary considerations in the creation of the COGEC.

On the other hand, it can be recalled that Tencent appeared to have high hopes when it was reported that the committee is already continuing with the deliberation and assessment for the approval of new games.

“This is clearly exciting news for China’s gaming industry,” an unnamed spokesperson of the company was quoted saying.

“We’re confident that after the publishing license approval, we will provide more compliant, high-quality cultural works to society and the public,” the spokesperson further said about the reported development from the COGEC.