Mainland control network traffic Tencent plug-in
The regulatory risk of the Internet game industry in the Mainland continued to rise. The authorities indicated that it intends to control the number of new games. The news hit Tencent Holdings (00700), which fell by 17.4 yuan (4.9%) on Friday and closed at 340 yuan, with a turnover of 17.5 billion yuan.
Daxing said that the details of the measures have not yet been clarified. If the number of new games is reduced, it will have a certain impact on the market sentiment. As large developers have better R&D capabilities, they will be able to cope with policy changes.
The company is attacking the global game industry
In addition, Tencent will team up with Japanese game developer Square Enix to develop new games. The two companies will establish a joint venture to expand the global game business. Tencent is authorized to distribute and sell Square Enix’s popular game Final Fantasy in the Mainland.
The Ministry of Education and other 8 departments jointly issued the “Integrated Prevention and Control Program for Myopia for Children and Adolescents” on Thursday night. One of the measures is that the National Press and Publication Administration plans to control the number of new online game operations, study the age warning system, and limit the use time of minors. .
Nomura believes that the above-mentioned documents are based on the instructions of President Xi Jinping about students’ myopia problems, so they are not only tightening regulatory actions against the game industry.
The bank also said that even if it controls the release of new games, the game approval has been suspended for 4 months, and a large backlog of games is pending. Online games contributed 204 billion yuan in revenue last year, and it is estimated that regulators will not “break the road.”
Nomura quoted the game company as saying that the details of the measures are not clear at present, and the easiest way to infer is to reduce the number of casual game approvals, such as poker and chess, which account for about half of the 600 to 800 new games per month, and have many students. Player.
Approval is expected to restart in the second half of the year
JPMorgan Chase said that the document reflects that the game-related regulatory restructuring is about to be completed, and the game approval has the opportunity to restart in the second half of the year. The bank added that if the new game supply is reduced, developers need to pay attention to the quality of the game. Therefore, companies with strong R&D capabilities and better relationship with the government, such as Tencent and NetEase, can benefit, and small companies are under pressure. In terms of game sales, large developers can increase bargaining power and have a positive impact on operating margins.