Few Chinese video gaming executives are expecting Beijing to significantly relax its licensing system to help the industry, according to interviews with delegates at a gaming industry conference in Shaoxing, a city in eastern Zhejiang province.
China's strict video game licensing system, with an eight-month-suspension last year, has made it difficult for the country's gaming studios to launch new titles and contributed to a downturn in China's gaming market.
According to a report released by China's gaming industry association on Thursday, total revenue for the country's gaming companies decreased 1.8 per cent year on year in the first half of 2022, the first decline on record.
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Although a policy document published by 27 ministerial bodies, led by the Ministry of Commerce, this week advocated expanding a pilot system to review online games to help China's cultural exports, it does not mean Beijing is ready to open the floodgates for new games, industry insiders said.
Ao Ran, secretary general of the China Audio-Video and Digital Publishing Association, the semi-official body representing gaming companies, said the policy does not necessarily point to a quicker pace of licence approvals.
"Reviewing games and granting licences are two separate steps," Ao said on the sidelines of the China Gaming Industry Innovation and Development Forum in Shaoxing.
But he added that the policy document sends a good signal for the games industry, which has been experiencing difficult times amid the tightened regulatory environment and slowing economy. "At this point in time, the industry needs more sustainable solutions than any time in the past," Ao said.
The Chinese video game industry is experiencing difficult times. Photo: Handout alt=The Chinese video game industry is experiencing difficult times. Photo: Handout>
The number of new licences issued so far this year is significantly lower than previous years after an eight-month hiatus since last summer. The National Press and Publication Administration, China's top watchdog for video games and other online media, approved 45, 60 and 67 licences in April, June and July, respectively.
Meanwhile, the number of video gamers in the first half fell 888,000 year on year, marking the first decline since data became available in 2008, according to the report by the gaming industry association.