Tencent, a Chinese computer behemoth, has received its first license for a video game in the previous 18 months. This ends a dry period that has jeopardized the company’s status as the leading game developer in the world.
As part of an expansive crackdown on large technology businesses that began in 2016, Beijing took action against the country’s thriving gaming industry. This action included putting a limit on the amount of time that children and teens may spend playing video games.
Additionally, the authorities stopped approving any new titles for the next nine months, which will end in April.
The National Press and Publication Administration, which is China’s gaming regulator, announced on Thursday that it had approved 70 new titles in the month of November. These titles include the action game “Metal Slug: Awakening” developed by Tencent and the role-playing game “Journey to the West: Return” developed by rival NetEase.
In order to produce and sell video games in the Chinese market, publishers need to get the necessary gaming licenses.
Tencent’s most recent acquisition of a significant license was in May of 2021.
In September, a Tencent subsidiary was awarded a license, although the license was for an educational game that was free to play.
After the license news was made on Friday morning, the stock price of the Hong Kong-listed business moved up 0.5 percent in early trading, while NetEase climbed five percent.
The decision is a hint that China’s stringent stance toward technology corporations is beginning to loosen.
In an effort to satisfy the requirements set out by the government, hundreds of game developers gave their word that “politically detrimental” information would be removed from their wares and that they would place restrictions on the participation of minors.
Players under the age of 18 are only allowed to play for a total of three hours each week according to the stringent limitations that were imposed the year before.