Chinese gaming industry saw a rare decline in video game sales for first time in the last two decades. The sales in once a ‘booming industry’ fell 10 per cent in 2022, to roughly $39 billion amid Chinese government’s regulatory pressure and unstable global economic condition. Whereas, the overall user size shrank 0.33 per cent from what is was a year before, to 664 million. The mobile game industry was was down 14.4 per cent and the esports business also saw a decline of 14 per cent.
According to a report published by the Gaming Publishing Committee of the China Audio-Video and Digital Publishing Association, strict COVID-19 restrictions, growing competition from overseas, Chinese government’s strict crackdown on video are some of the factors that impacted the industry. “The whole industry is under pressure,” the association said.
There have been concerns among the country’s regulator about gaming addiction among minors. Earlier in 2021, China’s National Press and Publication Administration brought in rules that restricted kids under 18 years old from playing online games for more than 3 hours per week. However, now, these signs of intense crackdown on the domestic video games sector appear to be easing.
If we talk about 2022, as per reports, only 512 game licences were approved in China, including 468 domestic titles and 44 games from overseas. Whereas in 2021, 679 domestic games and 76 imported titles were approved.
