Mobile games in China generated $8 billion in revenue during the third quarter of this year, down 19% compared to Q3 2021, according to a recent report from China-based video gaming analytics company CNG (via South China Morning Post).
Per report, the reason behind the sharp decrease is the downward trend in mobile gaming usage among Chinese people.
“Compared with the same period last year, the numbers of active users and hours dropped significantly and spending power has weakened,” the firm said.
In addition, The South China Morning Post reported that the number of mobile titles that were shut down also grew by 89% during the quarter compared to Q2.
In August last year, a state-owned Chinese newspaper referred to online gaming as ‘opium for the mind’, signaling that the government would soon impose further regulations on the gaming sector.
A month later, China slowed down its approval process for online games to make sure they complied with its new rules that now requires gaming companies to restrict the amount of time minors may spend playing to three hours a week.
The approval freeze came to an end this April, when The National Press and Public Administration issued publishing licences to 45 games from various companies such as Baidu, iDreamSky, XD Inc, and Shenzhen Zqgame.