China's Video Game Industry Sees Continued Growth with Monthly Approvals

In February, Chinese regulators approved a total of 113 video game titles, including 110 domestic and three foreign games. This marks the continuation of high monthly approval levels since the easing of strict regulations in 2022. The National Press and Publication Administration (NPPA) announced the list, which included popular titles such as NetEase’s Lingshou Adventures, Plants vs. Zombies 3, and Door Kickers: Action Squad. Over the past year, the number of monthly licenses has remained robust, with over 100 approvals each month, except for April and May which had 95 and 96 approvals respectively. The regulatory environment for China’s gaming industry has significantly improved following an eight-month hiatus in 2021. Additionally, rules for underage gamers have been strictly enforced, allowing playtime only between 8 PM and 9 PM on specific days. In 2024, a total of 1,306 domestic games and 110 foreign titles were approved, reflecting a significant increase from previous years.

Enhanced Regulatory Environment Boosts Game Approvals

The recent surge in game approvals signifies a positive shift in China's regulatory approach towards the gaming sector. Since the relaxation of stringent controls in 2022, the NPPA has consistently granted a substantial number of licenses each month. This trend reflects the government's growing support for the industry while maintaining necessary oversight. The inclusion of both domestic and international titles, such as NetEase’s Lingshou Adventures and imported games like Plants vs. Zombies 3, demonstrates the diversity and vibrancy of the market. The steady flow of approvals has reinvigorated the industry, providing developers with greater confidence and opportunities to innovate.

The improvement in the regulatory environment is particularly notable given the challenges faced by the industry in 2021. During that period, an eight-month pause in license approvals created uncertainty and hindered growth. However, the subsequent resumption of approvals has led to a more stable and supportive ecosystem. Developers now benefit from clearer guidelines and faster processing times, enabling them to bring new and exciting titles to market more efficiently. This change has not only benefited established companies but also encouraged smaller developers to participate actively in the thriving gaming scene. Moreover, the enforcement of strict rules for underage gamers ensures responsible gaming practices while fostering a healthy balance between entertainment and education.

Increased Approvals Reflect Growing Market Demand

The significant rise in game approvals in 2024 underscores the growing demand for diverse gaming experiences within China. With a total of 1,306 domestic and 110 foreign titles approved this year, the numbers are substantially higher compared to previous years. This increase highlights the expanding interest in both local and international content. The consistent monthly approvals have provided a steady stream of new releases, keeping players engaged and satisfied. The inclusion of popular imported titles further enriches the market, offering gamers a wider range of choices.

Looking back, the industry saw a dramatic decline in approvals during 2018 due to government restructuring, followed by a freeze in 2019. However, the recovery has been remarkable, with over 2,000 games licensed in 2018 and more than 1,500 in 2019 after the resumption of approvals. The current upward trend indicates a strong and resilient market. The boost in approvals not only meets consumer demand but also stimulates economic growth. As the industry continues to thrive, it is expected to attract more investment and talent, further solidifying China's position as a global leader in gaming. The combination of robust regulatory support and increasing market demand sets the stage for a promising future for the Chinese gaming industry.