The Chinese government launched a crackdown on video games

Since July 2021, the Chinese Communist Party has not allowed any video games to launch on its territory. As a consequence, almost 14,000 development studios have closed down in China.

Following new governmental regulations, latest video games, whether they are on PC, console or mobile phones, are not allowed in China. This freeze on the gaming industry has forced many companies to close down. Bigger developers like Tencent and Baidu were lucky enough to relocate to Taiwan and Hong Kong.

The impact is significant as the Chinese market regularly ranks in first or second place in the video game industry. It is too early to say whether the Chinese government will go back on its decision. In the meantime, the crackdown on video games is moving quickly across the country.

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