Niko Partners, the Chinese and Southeast Asian market intelligence provider, has released its detailed report showing how the new regulations introduced in China on the gaming industry have affected young gamers.
China implemented new rules on September 1, 2021, stating that gamers under 18 years old will be allowed to play only on Friday, Saturday, Sunday, and legal holidays, for one hour per day between 8 pm and 9 pm.
That's limiting these gamers to only three hours of gaming a week.
According to Nikko's report, 60 per cent of Chinese youths played video games in 2020. However, after the NPPA implemented the 3-hour regulation, the percentage of youth gamers dropped to 40 per cent, meaning 77 per cent of Chinese youth play fewer hours per week as a direct result of the limitation. The nation now has 54 per cent of youth gamers playing within the approved government-mandated hours.
The report shows the regulation had a mixed reception, with 76 per cent of people believing video games have a positive influence, opposing the 52 per cent of people agreeing with the limitation.
Niko goes on to predict that the number of young Chinese gamers will rise to 115 million by 2026, compared to the current 83 million now and 122 million at its peak in 2020.
The National Press and Publication Administration (NPPA), the Chinese government regulator for video games, further restricted the amount of time that young gamers in China could play video games in order to strengthen the nation's anti-addiction regulations.
Despite the clampdowns and curbs on the previously run-away growth, it appears that the games industry in China is not slowing down. China Mobile Games and Entertainment Group Limited (CMGE), a publisher and developer of mobile games in China, has partnered with DreamWorks Animation LLC and Universal Pictures for a special project.
China also played a noteworthy part in the mobile industry's performance in July, with titles like Harry Potter: Magic Awakened and Fantasy Westward Journey seeing significant success.