Game Studios Bankrupt Due to China’s Failure to License

According to Chinese law, game developers must obtain a license before they can sell games on the App Store and other app marketplaces. However, it seems that China is giving up on app developers producing for the App Store and other platforms due to regulatory inaction that has caused thousands of small game studios and related companies to go bankrupt in the country. issuing new game licenses continues to avoid.

The regulators’ decision to cease licensing in late 2021; It is expected to continue in 2022. On the other hand, the National Press and Broadcasting Administration (NPPA), which licenses games in China, lists of games refuses to publish.

It is estimated that 140,000 businesses went bankrupt due to the ban.

According to reports, approvals for new games in the first half of 2021 were considered “a little too aggressive” and regulators began rolling out game license approvals in July. to suspend had decided. At the time it was not specified how long this ban would last; however, according to the South China Morning Post, the ban, which began at the end of July, has resulted in new gaming licenses being issued since the nine-month cut in 2018. The Longest has become a suspension. While the NPPA has not officially given a reason for the current suspension, it is thought to be related to government gaming pressure, which includes restrictions on playing time for minors.

The impact of the regulator’s decision to refrain from providing new licenses is causing many problems for game developers in the region. Since the decision was made in July, nearly all of the gaming industry has been around, including studios and companies engaged in broadcasting, advertising and sales of games. 140,000 businesses alleged bankruptcy. In comparison, it is stated that 180,000 game companies closed in the whole of 2020.

apple, to local laws Suspends updates from the Chinese App Store, which has no license from the NPPA, since July 2020, to comply. The fact that a game is unlicensed naturally means that it cannot be submitted to the regional App Store or updated. The effects of this lack of new licenses are being felt by the big players as well. TikTok’s owners ByteDance, Baidu, and Tanwan Games fired their game units in response, while Tencent also expanded more into foreign markets. source has started to transmit.