Recently, the Measures for the Administration of Online Games (Draft for Solicitation of Comments) (hereinafter referred to as the "Measures") released by the National Press and Publication Administration have attracted widespread attention and discussion in the game industry. The introduction of this new regulation has undoubtedly brought unprecedented challenges to the game industry, but it has also nurtured new opportunities.
First, the advent of the era of strict supervision.
The promulgation of the Measures marks that China's online game industry has officially entered an era of strict supervision. Since 2021, the competent authorities have continuously strengthened the supervision of the game industry, and the promulgation of the Measures is a continuation and deepening of the regulatory thinking in the past few years. This is undoubtedly a heavy blow for gaming companies that are pinning their hopes on the "relaxation cycle".
However, from the perspective of strict supervision, this measure is conducive to regulating the order of the game market, protecting the rights and interests of consumers, and promoting the healthy and sustainable development of the game industry. In the past period, the game industry has been full of chaos, such as false publicity, inducing consumption, gambling and pornography, and other problems are not uncommon. The existence of these problems not only harms the interests of consumers, but also affects the image and development of the entire industry. Therefore, it is imperative to strengthen supervision.
2. Challenges and opportunities coexist.
In the face of the advent of strict regulation, gaming companies are undoubtedly facing huge challenges. First, some of the new and more stringent provisions in the Measures will have a profound impact on the performance of game companies. For example, Article 12 of the Measures clearly stipulates that game publishing and operation units shall go online within one year of obtaining the version number, which will greatly reduce the product scheduling margin of game companies and require them to improve their R&D efficiency and market prediction capabilities. At the same time, Article 18 of the Measures restricts the excessive use and high consumption of games, which will directly affect the commercialization model of in-app pay-to-play games and the profitability of high-ARPU games.
However, challenges and opportunities often go hand in hand. In the context of strict regulation, game companies need to pay more attention to improving the quality of games and optimizing the user experience. Only by truly being user-centric can we win the recognition of the market and consumers. At the same time, some provisions in the Measures also provide a new direction for game companies. For example, Article 27 of the Measures on random selection requires game operators to provide users with direct purchase or redemption, which will prompt game companies to explore new profit models and innovative ways to play. In addition, the provisions of the Measures on Mini Program games will also provide new market space and development opportunities for game companies.
3. Adapt to change and seize opportunities.
In the face of the advent of strict regulation and the transformation of the gaming industry, gaming companies need to actively adapt and seize the opportunities. First of all, game companies need to strengthen their study and understanding of the Measures to ensure that their business meets the requirements of the regulations. At the same time, it is necessary to strengthen communication and exchanges with the competent departments, give timely feedback on problems and difficulties, and strive for policy support and guidance.
Second, game companies need to focus on improving game quality and user experience. In the context of strict regulation, only high-quality games and high-quality services can win the recognition of the market and consumers. Therefore, game companies need to increase their investment and efforts in game research and development, technological innovation, and user experience optimization.
Finally, game companies need to actively explore new monetization models and innovative ways to play. Under the restrictions of the Measures, the traditional profit model will be challenged, so game companies need to find new profit points and innovative ways to respond to market changes. For example, we can explore diversified profit models such as advertising models and subscription models, as well as combine new technologies such as virtual reality and augmented reality to improve user experience and attractiveness.
IV. Conclusion. The introduction of new regulations on online games has undoubtedly brought unprecedented challenges to the game industry, but at the same time, it has also nurtured new opportunities. In this era of change, game companies need to actively adapt to changes, seize opportunities, and continuously improve their own strength and innovation capabilities in order to remain invincible in the fierce market competition. At the same time, we also look forward to a healthier and more sustainable development of the game industry under the promotion of strict regulation, and bring better gaming experience to the majority of players.
Draft Measures for the Administration of Online Gaming