Tencent shares plummet by $20 billion thanks to Chinese regulations
Tencent is responsible for publishing Fortnite and PUBG in China, developing robot zombie versions of Call of Duty, and releasing a major competitor to Steam. Everything seems to be going right for the company – but even it’s still vulnerable to market fluctuations. So when China’s Ministry of Education put out regulations targeting the video game industry, Tencent’s stock value plummeted by a staggering $20 billion.
China has made extensive changes to its regulatory systems over the past year, which is already frustrating studios in the industry. But a new set of recommendations go a step further and limit the number of online games approved for distribution.
Once these recommendations went public, Reuters and GamesIndustry.biz reported that Tencent’s stock value decreased by $20 billion. That brings the total losses over the past year up to $160 billion.
The good news is this might be a temporary setback for Tencent, who reported that profits were up by 25% for the first half of 2018. But until the approvals process is addressed in a way investors can feel secure in, further losses could be in store.
Posted:
Related Forum: PC Gaming Forum
Source: https://www.vg247.com/2018/09/03/tencent-shares-plummet-20-billion-thanks-chinese-regulations/
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Comments
JimboPosted:
That's horrible for Tencent. China is really being strict when it comes to video games. I'd hate to live there.
JimboPosted:
Chris Yeah the more interesting part of this story is the regulations they put in place.
If you're underage, you have 2 hours a day to play legally in China.
They are also limiting the new online games that come out. Which is why the stock dropped.
Only 2 hours a day?! That's horrible I'd go insane. How do people live in this country?
kamilcaPosted:
Decy Never understood why china has always had this thing against the gaming industry... They don't realise it could easily be one of the biggest industrys over there if they actually lifted these stupid sanctions. With the way the world is now technology wise also its gonna be tougher for them to try and even stop it with more and more people connected than ever.
because its a country of workers. they dont want people playing games. ontop of that they have some really really bad gamign addiction cases such as children being neglected etc
ChrisPosted:
Yeah the more interesting part of this story is the regulations they put in place.
If you're underage, you have 2 hours a day to play legally in China.
They are also limiting the new online games that come out. Which is why the stock dropped.
If you're underage, you have 2 hours a day to play legally in China.
They are also limiting the new online games that come out. Which is why the stock dropped.
DecyPosted:
Never understood why china has always had this thing against the gaming industry... They don't realise it could easily be one of the biggest industrys over there if they actually lifted these stupid sanctions. With the way the world is now technology wise also its gonna be tougher for them to try and even stop it with more and more people connected than ever.
coolbunny1234Posted:
That's an insane number to try and come back from, especially due to the regulations that are out of their control.
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