Chinese Government Further Restricts Gaming for Kids by Limiting Playtime to 3 Hours Per Week

The Chinese government is at it again. A few weeks ago Tencent began implementing facial recognition software into their games to ensure kids don't bypass their daily gaming allotment by using their parent's phones. This week the government announced new restrictions on gaming for minors and unlike previous restrictions these are strict. Anyone under 18 years old will only be able to play video games between 8pm to 9pm on Friday, Saturday, and Sunday only for a total of 3 hours per week.

Government regulations are also requiring game companies to ensure their players are using their real identities when setting up accounts to ensure compliance with weekly gaming limits.

This isn't the first time the Chinese government restricted youth gaming. In 2019 the government banned minors from playing at all between 10pm and 8am and limited gaming to 90 minutes a day on weekdays and unlimited time during weekends.

Tencent and other gaming giants in China likely won't be effected too much in the near term as minors only makes up 1-5% of gaming revenues. Long term though, limited access to video games may result in kids developing non-gaming hobbies, which could result in long term declines in the Chinese gaming market. Effects on gaming companies outside of China will likely be even more limited as their exposure to China is indirect through local partnerships.

Further Reading: WSJ Article, Bloomberg Article