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      Persona 5: The Phantom X Has Censorship For Certain Demon Designs

      Persona 5: The Phantom X Has Censorship For Certain Demon Designs

      Figment 2: Creed Valley Review – Fun Times That Aren’t a Figment of Your Imagination

      Figment 2: Creed Valley Review – Fun Times That Aren’t a Figment of Your Imagination

      Company of Heroes 3 – Free Major Update Soon

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      Nikke Pregnant Sakura Event

      Nikke Cherry Blossom Event Implies Robot Girls Can Get Pregnant

      FFXIV Stormblood Expansion Free for a Limited Time

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      Multiversus Open Beta shutdown

      MultiVersus Announces It Was In Open Beta The Whole Time, Shuts Down This June

      kabam king arthur

      [GDC 2023] Kabam Leads Tyler Black and Nick Anderson Give Us a Sneak Peek of King Arthur Legends Rise

      Nikke PC

      Goddess of Victory: NIKKE Upgrades Email Login to Level Infinite Pass

      Jane Hsu SpatialLabs

      [GDC 2023] Jane Hsu On How SpatialLabs Overcome its Hurdles

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      Persona 5: The Phantom X Has Censorship For Certain Demon Designs

      Persona 5: The Phantom X Has Censorship For Certain Demon Designs

      Figment 2: Creed Valley Review – Fun Times That Aren’t a Figment of Your Imagination

      Figment 2: Creed Valley Review – Fun Times That Aren’t a Figment of Your Imagination

      Company of Heroes 3 – Free Major Update Soon

      Company of Heroes 3 – Free Major Update Soon

      Nikke Pregnant Sakura Event

      Nikke Cherry Blossom Event Implies Robot Girls Can Get Pregnant

      FFXIV Stormblood Expansion Free for a Limited Time

      FFXIV Stormblood Expansion Free for a Limited Time

      Multiversus Open Beta shutdown

      MultiVersus Announces It Was In Open Beta The Whole Time, Shuts Down This June

      kabam king arthur

      [GDC 2023] Kabam Leads Tyler Black and Nick Anderson Give Us a Sneak Peek of King Arthur Legends Rise

      Nikke PC

      Goddess of Victory: NIKKE Upgrades Email Login to Level Infinite Pass

      Jane Hsu SpatialLabs

      [GDC 2023] Jane Hsu On How SpatialLabs Overcome its Hurdles

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      [GDC 2023] Kabam Leads Tyler Black and Nick Anderson Give Us a Sneak Peek of King Arthur Legends Rise

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      Vertigo games

      [GDC 2023] Vertigo Games CFO John Coleman Speaks About Bringing Different Genres To VR

      PICO Peter Li

      [GDC 2023] PICO Head Peter Li Talks Third Party Partnerships and The Future of The VR Industry

      Paul Brady Interview

      [GDC 2023] Paul Brady Talks About Resolution Game’s Upcoming Mixed Reality First Person Shooter Game In Interview

      Zhang Jian Interview

      [GDC 2023] Zhang Jian Talks About PICO’s Role in Moving The VR Industry Forward in Interview

      resident evil knife

      Resident Evil 4 (2023) Interview: The New Knife Parry Was Made Specifically For The Krauser Fight

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

      W. Amirul Adlan by W. Amirul Adlan
      1 year ago
      in All, Industry, News
      Reading Time: 2 mins read
      China Game Industry Faces Layoffs And More After 5 Months Of Game License Freeze
      Share on FacebookShare on TwitterShare on TelegramShare on Whatsapp

      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.


      Follow @GamerBraves

      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.


      Check This Out Next


      Tags: China
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      W. Amirul Adlan

      W. Amirul Adlan

      Avid enjoyer of games that sit about as far away from mainstream as possible. Also a proud UWE graduate with a degree in Media and Journalism, along with a TOA Diploma in Digital Animation. In that spirit, I enjoy- Soulsbornes, tabletop gaming (Warhammer 40K), Fighting games, and Character Action games. I also believe in the old adage: "I dig giant robots, you dig giant robots, we dig giant robots, chicks dig giant robots. Nice". Twitter: @wamiruladlan

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