China's two largest gaming companies, Tencent and NetEase, have lost a total of more than $60 billion in value over the past 24 hours. That's eight times more than what Microsoft paid for Bethesda's parent company ZeniMax.
The stock rally comes as China continues to dominate the video game industry in China. Last month, Chinese officials decided that children under the age of 18 could only play video games for an hour on Fridays, weekends or holidays. Previous rules allowed 1.5 hours during the week and three hours on weekends. Xinhua reported that Chinese regulators met again with industry leaders this week and advised them to stop focusing. Take advantage and start making game design changes that "add nothing".
"The Xinhua News Agency reported that officials have instructed companies and operating systems to check the content of their games." “Bad, violent content and those that promote unhealthy tendencies” such as money and femininity, must be eliminated. The South China Morning Post notes that the agency that administers such licenses - the National Bureau of Press and Publications - is rushing to publish a list of approved titles at the end of each month. However, it has not yet revealed its approved list for August.
Shares of gaming giants Tencent and NetEase plunge overnight after more Chinese regulations threaten