2023-12-24 01:22:04
NetEase and Tencent’s stock prices plummeted: Inducement rewards such as daily login are not allowed due to the draft opinion on online games
2023-12-24 09:22:04
The National Press and Publication Administration recently issued a notice on the “Online Game Management Measures (Draft for Comments)”. The notice stated that online games are not allowed to set inductive rewards such as daily login, first recharge, and continuous recharge.
Online game publishing units shall not provide or condone high-priced transactions in virtual props in the form of speculation, auctions, etc.
All online games must set user recharge limits and announce them in their service rules. Pop-up warnings should be issued to users for irrational consumption behavior.
The notice also prohibits forced battles, and online game publishing and operating units are not allowed to set up forced battles in online games.
After the notice was released, the stock prices of NetEase and Tencent both plunged. As of today’s close, NetEase’s stock price was HK$122, down HK$39.8 from the previous day, or 24.6%, and its market value had evaporated by HK$131.2 billion;
Tencent’s stock price was HK$274, down HK$38.6 from the previous day, or 12.35%, and its market value evaporated by HK$362.1 billion. Other gaming stocks also suffered disastrous declines.
Today, many people lament the foresight of ByteDance.
In November 2023, ByteDance’s game business has been undergoing a large-scale business contraction – for games that have been launched and are performing well, they will seek to divest them while ensuring operations; for projects that have not yet been launched, except for Except for a small number of innovative projects and related technology projects, all will be shut down.
ByteDance’s decision will result in at least hundreds of employees losing their jobs. This is also another retreat by ByteDance in the gaming field.
Recently, Pico, a subsidiary of ByteDance, also carried out major layoffs. PICO once had more than 2,000 employees, but now it may only retain a few hundred employees. PICO has also lowered its sales target for 2023 and will no longer burn money to expand the market, but will turn to in-depth operations to retain users.
In addition, there are rumors in the market that ByteDance is considering selling the game studio Mutong Technology. In 2021, ByteDance will acquire Muton Technology for a consideration of about US$4 billion. According to analysts, Mutong Technology’s performance since its acquisition has been mediocre, which is one of the reasons why ByteDance hopes to sell.
With ByteDance’s series of adjustments in the gaming industry, it also marks that ByteDance is experiencing a major defeat in the gaming industry. Of course, this series of subsequent disturbances was also avoided.
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