China’s gaming industry insiders praise new policy document but remain cautious on licensing prospects

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.

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.