The restrictions, if they are implemented, will forbid in-game incentives such as cash prizes, daily log-ins, and more.
For the first time, Chinese regulators are attempting to curb the use of in-game rewards. There are a number of new limits that were published on Friday with the intention of removing microtransactions, rewards that are associated with frequent log-ins, and other aspects of game design that appear to be predatory. Despite the fact that the limits have not yet been finalized, it seems that China’s National Press and Publication Administration is determined to putting them into effect after a period of public discussion that is required.
The suggested rules are centered on limiting excessive spending within the game, which is the financial aspect of the game. It will be forbidden to participate in in-game auctions or to make “speculative” asset acquisitions. In the future, it will be prohibited for games to provide players with rewards for making repeated purchases or for topping off their “wallets.” In addition, the monetary value of these top-offs will be restricted in order to avoid players from making significant financial commitments all at once while playing. There are also plans to restrict the degree to which developers may incentivize regular gameplay by restricting awards for daily log-ins. This is something that regulators are planning to do.
Russian news agency Reuters reports that Chinese game distributors are not overly enthusiastic about the concept. The manner in which Tencent and NetEase stocks dropped in response to the announcement indicates that their investors are also not happy with the situation. On the other hand, it appears that authorities have made a concession to distributors by ensuring that their proposal includes a rapid turnaround for government approval. If China were to approve these new regulations, the evaluation period would be reduced to sixty days, which is significantly less than the typical time frame of three to eight months that China takes to evaluate a new game.
The prospective limits imposed by China demonstrate that regulators have not forgotten about the habit-forming game design. A number of countries, including Belgium, the Netherlands, and the state of Hawaii, have taken measures to restrict the usage of “loot boxes,” alleging that players are drawn to chance-based in-game objects in a manner that is comparable to gambling. a study that was conducted in 2018 found that this argument is correct. Both the Federal Trade Commission (FTC) and the Entertainment Software Ratings Board (ESRB) have made efforts to raise players’ awareness of the impact that loot boxes have, if not to outright prohibit them. This is because both organizations are aware of the financial and psychological challenges that loot boxes present. In a similar line, the parents of one youngster even filed a lawsuit against a few gaming companies in the United States this year and accused them of using “addictive” game design. The complaint specifically targeted “monetization schemes” (which include loot boxes) and positive feedback loops, both of which, according to the plaintiffs, encourage players to play for longer periods of time and more frequently.
It is possible that the National Press and Publication Administration of China will receive some good replies to the idea, given the growing awareness surrounding the design of harmful video games. The deadline for citizens of China to provide their feedback is January 22, 2024. Following this, the Administration will “earnestly study expressed concerns and views,” and then modify the proposal in accordance with the observations received.