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    Mecha Break Franchise Set to Expand Beyond Gaming, Creators Reveal Future Plans

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    Superman (2025) Review – A Fresh and Vibrant Start to the DCU

    FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

    FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

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    Japanese Indie Dev Explains Why Japanese Studios Struggle with FPS Games

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    Sushiro Singapore x Street Fighter 6 Launches Wave 2 with New Menu and Exclusive Merch

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    Hideo Kojima and Yoji Shinkawa Open Up About Death Stranding 2: Connection, Creativity, and Walking Through Loneliness

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    [EXCLUSIVE] Gearbox Executives Share Details on Borderlands 4 – Story, Weapons, and Lessons Learned

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    [EXCLUSIVE] Wan Hazmer Reveals How No Straight Roads 2 Expands Beyond Vinyl City with Shueisha Games

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      Superman

      Superman (2025) Review – A Fresh and Vibrant Start to the DCU

      FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

      FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

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      Japanese Indie Dev Explains Why Japanese Studios Struggle with FPS Games

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      Asus RTX 5050

      ASUS Malaysia Launches New RTX 5050 Gaming Laptops For ROG, TUF, And ASUS Gaming, Now Available

      Rumored Assassin’s Creed Black Flag Remake Leaked via Steam Page

      Rumored Assassin’s Creed Black Flag Remake Leaked via Steam Page

      Sushiro Singapore x Street Fighter 6 Launches Wave 2 with New Menu and Exclusive Merch

      Sushiro Singapore x Street Fighter 6 Launches Wave 2 with New Menu and Exclusive Merch

      Mecha Break Franchise Set to Expand Beyond Gaming, Creators Reveal Future Plans

      Mecha Break Franchise Set to Expand Beyond Gaming, Creators Reveal Future Plans

      Apple Arcade games

      Apple Arcade adds Play-Doh World and Three New Games, Arriving August 7

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      Superman

      Superman (2025) Review – A Fresh and Vibrant Start to the DCU

      FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

      FANTASY LIFE i: The Girl Who Steals Time Gets Physical Nintendo Switch 2 Release This August

      Japanese Indie Dev Explains Why Japanese Studios Struggle with FPS Games

      Japanese Indie Dev Explains Why Japanese Studios Struggle with FPS Games

      BlazBlue Entropy Effect mobile

      BlazBlue Entropy Effect Mobile Version Set to Release on July 22, 2025

      Asus RTX 5050

      ASUS Malaysia Launches New RTX 5050 Gaming Laptops For ROG, TUF, And ASUS Gaming, Now Available

      Rumored Assassin’s Creed Black Flag Remake Leaked via Steam Page

      Rumored Assassin’s Creed Black Flag Remake Leaked via Steam Page

      Sushiro Singapore x Street Fighter 6 Launches Wave 2 with New Menu and Exclusive Merch

      Sushiro Singapore x Street Fighter 6 Launches Wave 2 with New Menu and Exclusive Merch

      Mecha Break Franchise Set to Expand Beyond Gaming, Creators Reveal Future Plans

      Mecha Break Franchise Set to Expand Beyond Gaming, Creators Reveal Future Plans

      Apple Arcade games

      Apple Arcade adds Play-Doh World and Three New Games, Arriving August 7

    • Interviews
      Hideo Kojima and Yoji Shinkawa Open Up About Death Stranding 2: Connection, Creativity, and Walking Through Loneliness

      Hideo Kojima and Yoji Shinkawa Open Up About Death Stranding 2: Connection, Creativity, and Walking Through Loneliness

      RAIDOU Remastered Interview – Director Yamai Kazuyuki on Reviving a Classic Detective RPG for Modern Audiences

      RAIDOU Remastered Interview – Director Yamai Kazuyuki on Reviving a Classic Detective RPG for Modern Audiences

      Pac-Man Goes Dark – Producer Seigo Aizawa Reveals the Making of Shadow Labyrinth

      Pac-Man Goes Dark – Producer Seigo Aizawa Reveals the Making of Shadow Labyrinth

      Honor of Kings Producer Reveals Game-Changing Hero Flowborn and Major Updates

      Honor of Kings Producer Reveals Game-Changing Hero Flowborn and Major Updates

      [ASIA EXCLUSIVE] Bringing Back a Classic: Inside the Making of FINAL FANTASY TACTICS – The Ivalice Chronicles

      [ASIA EXCLUSIVE] Bringing Back a Classic: Inside the Making of FINAL FANTASY TACTICS – The Ivalice Chronicles

      Onimusha: Way of the Sword Developers Reveal Details About the Long-Awaited Comeback

      Onimusha: Way of the Sword Developers Reveal Details About the Long-Awaited Comeback

      Diving Deep into the Digital World – Producer Ryosuke Hara Discusses the Direction of Digimon Story Time Stranger

      Diving Deep into the Digital World – Producer Ryosuke Hara Discusses the Direction of Digimon Story Time Stranger

      [EXCLUSIVE] Gearbox Executives Share Details on Borderlands 4 – Story, Weapons, and Lessons Learned

      [EXCLUSIVE] Gearbox Executives Share Details on Borderlands 4 – Story, Weapons, and Lessons Learned

      [EXCLUSIVE] Wan Hazmer Reveals How No Straight Roads 2 Expands Beyond Vinyl City with Shueisha Games

      [EXCLUSIVE] Wan Hazmer Reveals How No Straight Roads 2 Expands Beyond Vinyl City with Shueisha Games

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      China Game Industry Faces Layoffs And More After 5 Months Of Game License Freeze

      W by W
      4 years ago
      in All, Industry, News
      Reading Time: 2 mins read
      0 0
      China Game Industry Faces Layoffs And More After 5 Months Of Game License Freeze
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      The China Game Industry has faced layoffs and more ever since the Chinese government put a freeze on new game publishing approval 5 months ago, with many game companies in the country shutting down.

      Briefly, the way it works is simple: The Chinese government doesn’t allow games to be published in the country without prior approval from the government. This involves rigid content checks, making sure games don’t go against the government’s values.

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      In the midst of their big overhaul, the government had frozen approval for new licenses- meaning no new games could be published in the country.

      On the Game Development Side

      While obviously bad for the gamers, it’s also terrible for developers. Game development isn’t cheap, and to have your months or even years of hard work suddenly choked out by the license freezing means no means of getting the income to pay your staff.


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      According to Securities Daily, 300,000 game companies had reported less than 10 million yuan earnings, with more than 14,000 companies shuttered.

      Worse still, game studios that remained open in China were subject to massive layoffs- Covetous Blue Moon publisher Covetous Games saw far less game approvals this year, with only 4 before the license freeze in July.

      As a result, Securities Daily says the company has been laying off staff for the past two months, as well as cancelling the year-end bonuses.

      This affects small companies the hardest: While big companies like Tencent have many live service games to provide revenue streams, the Chinese Government seems inclined to make things harder, especially with the reported blacklisting of Steam providing a challenge.

      Game Companies Head Overseas

      Tencent
      If you’re a mega corporation, you can always just buy a publisher outside of China and have your games published through there for the rest of the world

      According to the report, many game companies in the country have started heading overseas due to the tightening restrictions.

      “The suspension of game license number issuance does have an impact on small and medium-sized game enterprises, but it also forces them to find a way out.” Zhang Yi, CEO and chief analyst of Ai Media Consulting, told the Securities Daily, “In fact, when the issuance of game license numbers was suspended in 2018, some companies realized the importance of ‘going abroad’, and the domestic game ‘going abroad’ The rhythm of the company is accelerating, and some companies’ business focus is even overseas.”

      It’s no surprise they would- mega-companies like Tencent have publishers outside of China, and even miHoYo had done the same with its Singapore-registered Cognosphere.

      However, not every company can afford this- small indie teams obviously wouldn’t be able to afford a whole remote publisher overseas, and even big companies like Perfect World have had to give up their overseas branches.


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