New registrations of China mobile game companies decreased by 18.88% in 2021 compared to 2020, according to Qichacha, a Chinese enterprise data platform. There were only 464 newly registered game companies last year.
In 2018, the Chinese administration agencies stopped issuing video game publication licenses for more than five months, and more than 30,000 small video game companies went bankrupt. That started a downward spiral. In 2019, there were still 1,282 new mobile game companies venturing into the business. But only 572 new registrations in 2020.
According to Qichacha, 2,372 mobile game companies are currently based in Guangdong, making the southern province a hot spot. There are an additional 616 mobile game enterprises based in Zhejiang and 374 in Hainan.
China’s gaming industry in 2021 saw a new major setback. When the issuing of video game publication licenses was suspended eight months ago, the suspension continues to this day. ChinaStarMarket said that there would be a stricter ban to reduce minors’ gaming addiction, forbidding game content related to apocalyptic settings, feminization, and homosexuality.
However, soon The National Press and Publication Administration denied the rumor. Following the turmoil, the stock prices of renowned game companies Tencent, Kuaishou, 37Games, and Bilibili, fell by 5.23%, 7.29%, 6.46% and nearly 10% respectively on closure.