Tencent and NetEase lost several billion dollars following new regulations in China
, by Thibaut
Tencent and NetEase got the worst Christmas present ever. In 2024, China plans to heavily regulate consumer spending on games.
As a result, brands will no longer be allowed to reward players who log on to a game every day. Added to this is the fact that the amount that can be deposited in digital gaming wallets will now be limited. These measures are due to come into force in 2024.
Alas, the repercussions were immediate for Tencent, whose shares plummeted 16% on the stock market. NetEase followed a similar trajectory, down 25%. The market value of both companies thus lost around $80 billion.
Source: videogameschronicle.com