internet - Government limits profitable gaming

New limitations on online game have been introduced by the government on Tuesday to safeguard the health of internet users, writes the Financial Times.

The system, which will encourage players to play less by cutting the benefits they gain in online games, is to be implemented by local internet companies that have signed a code of conduct drawn up by China's press and publications administration.

The move can be highly damaging for one of the more profitable internet industries in China, where gaming tops any other online activity. The market was expected to grow this year 65 percent to 633 million US dollar, says the article.
The move is rather similar to an action of the government last year where the profitable online content market - mainly SMS-based - was reshuffled by the government to the advantage of the larger telecom providers and put a dent in the revenue of content providers and portals. Drastic government measure can change overnight a profitable market into a non-profitable one.