After 2018, the Chinese government once again suspended the issuance of game version numbers on July 22 last year. According to a report by the Chinese media “Securities Daily”, a total of 14,000 game-related companies closed down and cancelled during a five-month period.
A person in charge of a game company said that even though his company conducted two tests for a game last year, it still has not passed the game approval of the National Press and Publication Administration. Because the game does not have a version number, the launch date is far away. He pointed out that large enterprise game companies still rely on existing games to make profits, and the suspension of game version numbers has the greatest impact on small and medium enterprise game companies.
There are currently 300,000 game companies in China with a registered capital of less than 10 million yuan. Only 5 months after the suspension of game version numbers on July 22 last year, 14,000 companies have closed down and cancelled. The suspension of the game version this time led to a wave of layoffs in the industry as in 2018, and game publishers, Geeky Games, also joined the ranks of layoffs. Even though the game has released many popular games such as “Blue Moon”, it lost about 1 billion yuan in profit in the first two months of 2020. Some employees pointed out that the company has laid off employees in the past two months, and cancelled the year-end bonus and Double pay.
The market share of web games is not as good as before. Only 0.5% of the total number of web games will be obtained in 2020. Only 4 web games will be approved in the first 7 months of 2021, and the number of users will also start from 2013. With the decline in the year, a large number of users criticized the production of web games as “coarse and shoddy” and lacked new ideas.
Source: Securities Daily
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