China Approves 88 New Games in July, Mostly Mobile Titles

China has granted licenses to 88 new games in July, with mobile titles accounting for 86% of the approved games. Notable studios such as 4399, Glacier Network, and Xishanju have received new licenses. However, major players like Tencent and NetEase are conspicuously missing from the list.

This recent batch of approvals indicates that China’s mobile gaming industry is recovering after the regulatory changes that have impacted the market in recent years. In 2021, China imposed a long pause on new game approvals, which significantly affected its mobile games market. The country also implemented strict restrictions on playtime for young gamers in an effort to combat video game addiction. Furthermore, major mobile gaming companies such as Tencent and NetEase have faced their own challenges, including Tencent losing its position as China’s largest company and experiencing its first-ever quarterly loss, as well as the high-profile dissolution of NetEase’s partnership with Blizzard. As a result, several companies have expanded globally to maintain profitability.

Is the Turmoil Over?

The dominance of mobile gaming in China makes its market a significant point of interest. As the birthplace of some of the world’s largest mobile game developers, the condition of the Chinese market serves as an indicator for the global gaming industry. Even though some major players are absent from this month’s list, the reintroduction of approvals suggests that the turbulence is temporarily settling.

In October 2022, no licenses were granted, marking a dramatic low. However, in 2023, Chinese authorities issued 88 licenses in January, 86 licenses in March, and the total number of licenses granted in 2023 surpassed the combined total of the previous two years by April.

Although China’s major players are diversifying their revenue streams by investing in or establishing console and PC developers, mobile gaming remains the dominant force in the country’s gaming industry. Additionally, it is the most profitable gaming platform globally. With mobile titles comprising 97.7% of the newly approved games, it is evident that China’s industry continues to prioritize mobile gaming.

In June, we reported that Tencent and NetEase generated 80% of the revenue from China’s top game makers in Q1.