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China's tech giant Tencent has announced it will limit the time children play its top online games after its stock was decimated by home media lashings. water for the game industry.
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A child plays Tencent's flagship online mobile game Honor of Kings - Photo: Getty Images
In a social media post, Tencent announced a series of new measures after it said "relevant authorities" had asked for more protection of minors in gaming and for companies to the gaming industry fulfills their “social responsibility”.
Hours earlier, an article in the Economic Information Daily, which is affiliated with China's largest state news agency Xinhua, compared digital games to "electronic drugs". " and called for more restrictions on the industry to prevent game addiction from "spreading" among children.
Although it did not mention the name of China's largest video game and social network, the newspaper criticized Tencent's flagship game Honor of Kings. highest in the world for the past two years.
"No industry, no sport can be allowed to develop to the point where it can destroy an entire generation", the article reads, "Society has realized the harm caused by online games. and they are often referred to as "psychic opiates" or "electronic drugs".
The parents cited in the article talk about children playing video games 7 hours a day, skipping breakfast to pay for games, and having their school grades plummet.
This article helped wipe $60 billion, or nearly 11%, from Tencent's market capitalization as investors fear that the gaming market will become the latest target of a crackdown on Tencent. with China's largest technology companies. However, shares of Tencent rebounded and ended with a 6% drop after the article was deleted online without explanation just hours after publication.
Tencent is a multinational technology corporation that operates China's largest social network and video game network, along with e-commerce and online payment businesses. Despite the pandemic that has pushed tech companies in the US to new heights, Tencent's value has fallen by nearly $400 billion this year as investors spooked by moves by Chinese regulators. China to limit the power of China's largest technology companies.
The Economic Information Daily's article came a few hours after a separate opinion piece on the same topic by China News Service on their Weibo account. Taking a softer stance, they said "schools, game developers, parents and other parties need to work together".
The new restrictions, which will initially only apply to Honor of Kings, will prevent children under 12 from spending money in the game and reduce the amount of time they can play each day from 1 hour and a half to 1 hour, from 3 hours to 3 hours. 2 hours on holidays. The new restrictions are even harsher than the authorities are demanding.
Against that backdrop, a related hashtag on Weibo has garnered more than 13 million views. Some are in favor of the new measures, while others argue that such regulation should be up to parents, or that the existing redundancy regulations have too many loopholes. Comments on the original article were mixed. Some decry that video games are "ruining youth in China for huge profits", while others liken it to the state's advice to people to "please stop eating in case you get sick". suffocation".
In June, more than a third of the revenue of the top 10 games came from Honor of Kings and another Tencent title, PlayerUnknown's Battlegrounds mobile game. The company's biggest games are not designed for consoles, but for playing online or on mobile phones using Android and Apple devices.
Tencent also put forward proposals for the entire industry to consider including a ban on gaming for children under 12. Chinese authorities have sought to limit the amount of time minors play video games, including a temporary ban on new video game licenses in 2018.
NetEase and Tencent have enacted a number of safeguards against young players, including Tencent's facial recognition feature on smartphones, to ensure that gamers are adults.
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