According to Xi Jinping, the leader of the People’s Republic of China, many young Chinese are suffering from poor eyesight therefore they need to use eye glasses at such as early age. In response, the government decided to implement a new legislation concerning the video game industry. It is known that children can now buy games for cheap and playing too much video game is pointed out to be the major reason why there is an increasing number of children needing to use eye glasses.
As a result of the announcement by the government, the biggest video game firm in the globe has lost billions of dollars from its market value as the company’s shares declined. Authorities from the government of China recommended that newly launched online games should be subjected to monitoring and control in a measure to solve the nearsightedness issue with the adolescents of the nation.
Tencent is the leading game developer in the country and its shares have suffered since the announcement. The impact is not only felt in game developers based in China but in other parts of the region as well including Bandai Namco, Capcom and Konami which are all from Japan. The decline in the costs of the shares only proved how influential and essential the Chinese market is to the industry.
This is not the first time that Tencent got into misunderstanding with the government. State media from the country expressed the concern that the younger generation is getting more addicted with video games therefore their academic grades are suffering. A news headline from last year also grabbed the attention of many because a 17 year old residing in Guangzhou passed away because he played mobile games nonstop for 40 hours.
The government knows that the young people have access to buy games for cheap which can lead to them playing more than the recommended amount of time. Therefore, it is mandating that video game companies should put a limit into how much time a young person can play every day.