Mainland China’s Game Licensing System Expands to Include Mobile Applications

China’s game licensing system, which previously impacted console and PC games, will now extend to include all mobile applications. According to Reuters, this new regulation requires mobile app providers in the country to register their details with the central government. This registration process necessitates either establishing a presence in China or partnering with Chinese publishers.

The existing game licensing system has already posed challenges for developers and publishers, causing a freeze in the approval of new games. This freeze has had a significant impact on both domestic and foreign game makers, particularly smaller companies.

The Impact on Smaller Developers and Publishers

This expansion of regulations to cover all mobile apps, although in a different form than games, is likely to create additional problems for smaller developers and publishers. It also highlights the fact that games are the segment of the mobile market most affected by strict regulations.

Ironically, these tighter regulations could lead to greater market control for major companies like Tencent and NetEase, potentially allowing them to monopolize gaming in China. Tencent, which also develops the widely popular WeChat app, has a distinct advantage in this scenario. However, this regulatory shift further emphasizes the unique nature of China’s mobile market in comparison to those in the West.

A Potential Boost for Other Markets

The increased restrictions in China could generate more interest in other major markets, particularly India, which has been more receptive to input from game makers. Indian authorities have demonstrated a willingness to listen to developers, creating a favorable environment for mobile innovation. As a result, India may become a new hub for gaming startups and industry growth.