In-depth interpretation丨The supervision of the game industry has been tightened again, pointing to the commercialization model of online games

21st Century Business Herald reporter Cai Shuyue, Zhu Weijing reported from Shanghai

On December 22, the National Press and Publication Administration officially released the Measures for the Administration of Online Games (Draft for Solicitation of Comments) (hereinafter referred to as the "Draft"), which became the number one news in the game industry at the end of 2023.

The Draft Opinion focuses on the commercial design of game products, adding a number of new requirements, including "online games shall not set inducing rewards such as daily login, first top-up, and continuous top-up", "all online games must set user top-up limits", and "the same enterprise shall not operate online game currency issuance and online game currency trading services at the same time".

An industry insider close to the supervision revealed to the 21st Century Business Herald reporter that in fact, as early as three or four months ago, it was learned that there would be a new regulatory approach to online games, "I only know that the overall direction is the recharge limit for adults, and the specific content is not particularly clear." ”

However, he was also amazed at the fierce performance of the market today. After the release of the "Opinion Draft", dozens of media game stocks fell in response. As of the close of Hong Kong stocks in the afternoon, Tencent and NetEase fell more than 12% and 24% respectively.

21 The reporter also tried to interview a senior executive of a listed game company about the "Opinion Draft", and after a long silence, he replied to the reporter: "I can't talk about it, you can directly read the market feedback." ”

A senior industry source based in Beijing told 21 reporters that the paper regulation at the end of the year indicates that the game industry may usher in a big year of regulation again in 2024. "Rather than discussing specific provisions, it would be more practical to think about why this document is being released at this time and what the regulatory trends will be next year. He said.

The reporter noticed that the heated discussions among major game practitioners and concerned people mainly focused on:

1. Is it good news that the approval process for online game business units has been shortened to 60 days?

2. What impact will restricting excessive use and high consumption of games have on the commercialization of the entire game industry?

3. How will the intensity and depth of the anti-addiction problem of minors be deepened?

The 21st Century Business Herald interviewed a number of industry insiders to try to explain the above questions.

Ad-only monetization games may require a version number

As a key element in determining whether a game can be successfully launched, the approval process of the version number has always been a matter of close attention to domestic game companies.

Article 7 of Chapter 2 of the Draft Opinion mentions that those engaged in online game publishing activities should submit an application to the local provincial publishing authority, and after review and approval, submit it to the national publishing authority for approval.

It is worth noting that the document sets out clear requirements for the limited period of approval of online game publishers. The Draft Opinion points out that the competent department of publication shall make a decision to approve or disapprove the application within 60 days from the date of accepting the application. If it is not approved, the reasons shall be explained.

Although the Draft Opinion clearly stipulates the approval period for engaging in online game publishing activities, many industry players do not believe that this regulation will bring substantial benefits to the industry.

Lin Yong (pseudonym), the legal director of a listed game company, pointed out to 21 reporters that the analysis of this regulation needs to be combined with Article 12 of Chapter 3 of the document. Article 12 points out that before online game publishing operations, the unit that has obtained the "Online Publication Services Permit" for the scope of online game publishing business must submit an application to the local provincial-level competent department for publication, and after review and approval, report to the competent department for national publication for approval.

"The above-mentioned 60-day review period only takes effect on the approval of the publishing qualifications of online game publishers. As far as the version approval process is concerned, there is still no specific timeliness benefit. He said.

"Many people think that this article belongs to the approval of the edition number, but in fact, it has nothing to do, it is just the approval of the qualification of the publishing unit. Fang Zinan, a lawyer at Guangdong Global Jingwei Law Firm, believes that this article has little to do with the approval process of the version number, and the essence is to clarify the process for game publishers to obtain the "Online Publishing Service License".

At the same time, he also pointed out to reporters that after the official implementation of the "Opinion Draft", pure advertising monetization (IAA) mini games may also be mandatory to obtain a version number before they can be launched.

Article 21: According to the "Technical Testing Specifications", if online game technical testing has any of the circumstances of publicly providing client software that can be directly registered and logged into the server, charging online game users, and obtaining revenue through commercial cooperation, advertising and sales, etc., it shall be viewed as an online game operation, and must obtain an approval number and publication number for publication approved by the competent state departments for publication.

The supplementary provisions of the Draft also point out that the act of providing users with online game downloads or online interactive use through information networks, charging users or obtaining benefits through advertisements and other means is counted as the scope of online game operation. And the IAA Mini Games, which are monetized by advertising, clearly fall into this category.

Commercial design of the main knife game

After the release of the "Opinion Draft", a number of industry insiders lamented to 21 reporters that the main object of this document is the current commercialization model of online games.

As expressly required in Article 18 of Chapter 3, excessive use of games and high consumption should be restricted. Online games are not allowed to set up inducing rewards such as daily login, first recharge, and continuous recharge.

You Yunting, a senior partner at Shanghai Dabang Law Firm, pointed out that if the regulations come into effect, they will have a great impact on the game industry in the short term. "Although the rewards of first recharge, daily login, and continuous recharge are suspected of inducing recharge, on the other hand, they are also a kind of concession for novice players. If the above consumption items are completely banned, it may directly affect the final revenue of the company. ”

At the same time, the Draft Opinion points out that online game publishing business entities shall not provide or condone high-priced transactions of virtual props in the form of speculation, auctions, etc. This means that some online trading channels for game products that exist in auctions and bought and sold at high premiums may also face strict supervision.

However, a number of experts and industry insiders euphemistically said in an interview with 21 reporters that it is still debatable whether the legitimate profits of game companies should be restricted through industry policies.

"Angelica to Caesar, Angelica to God". Lawyer Fu Gang, deputy director of the Intellectual Property Committee of the Shanghai Lawyers Association, analyzed to 21 reporters that the regulation of administrative regulations is only an industry management document, and it is not too detailed to stipulate the details of the operation, as long as it is necessary to stipulate the general direction and keep the bottom line. "I suggest that similar relevant provisions related to specific business details in the Consultation Paper should be streamlined as much as possible to avoid causing too many constraints on the operation of game enterprises. He said.

"Incentives for user payment behavior are widespread in all business models, and the essence of business is definitely to hope that users will spend more, even if they order takeout, there are similar incentives such as discounts on the first order and large full discounts. Fang Zinan believes that this article will have an impact on the operation of various game companies in a short period of time.

He further analyzed that this article adopts the development expression of "inducing rewards", in addition to the three types of mechanisms that have been clarified, in the actual enforcement process, it is not excluded that the possibility of other games' recharge promotions will also be included in the supervision.

Article 25 mentions that "the same enterprise shall not operate online game currency issuance and online game currency trading services at the same time". In addition, Article 17 [Prohibition of Compulsory Battles] mentions that online game publishing business units must not set up compulsory battles in online games.

Fang Zinan believes that this regulation may have a greater impact on MMO (massively multiplayer online game) products, because the current mainstream game asset transactions are basically carried out around MMO games.

Random selection services must not be provided to minors

Minors have always been the focus of online game protection, and in addition to continuing to focus on the construction of anti-addiction with limited time and quota, the draft has made clear provisions on card gacha.

Article 39: Article (5) of "Time Limits and Consumption Requirements" mentions that random selection services must not be provided to minors. Article 27: "Random Selection" also mentions that when providing random selection services, online game publishing business units should make reasonable settings for the number and probability of drawing, and must not induce online game users to spend excessively. At the same time, users should be provided with other ways to obtain virtual props and value-added services with the same performance, such as exchanging virtual props and purchasing online game currency directly.

"Gacha also has to give a direct purchase method, and many two-dimensional game gacha mechanisms may be banned. A senior expert who has been involved in the protection of minors in game companies for a long time believes that this will have a certain impact on the commercial design of minors under the anti-addiction system, such as the mall can only sell skins and props, and can no longer provide card drawing services.

However, a middle-level listed game manufacturer based in Shanghai said that the impact on the second game may not be particularly drastic, and many of the second games have direct purchase packages, "Many games can directly purchase character gift packages, and there are many normal operation strategies that can be used." ”

You Yunting believes that the protection of minors is now the focus of attention of various game manufacturers, so it will not be difficult to implement the above regulations. "Because once you violate the rules, the penalties for the manufacturer will be very severe. Therefore, if the provisions of the Draft Opinion need to be implemented, the resistance to actual implementation will not be very large. ”

Fu Gang, who has long been concerned about the protection of minors in online games, pointed out that from a commercial point of view, the implementation of the regulation will not have a great impact on the revenue structure of the existing game industry. From the perspective of the compliance of game companies, it is only on top of the original juvenile model, and then further excludes the randomly selected gameplay and services in the model. He believes that under this regulation, it seems to be a more sensible business choice for game companies to abandon minor users. He also called on all parties in society to fulfill their responsibilities and work together to do a good job in the protection of minors, "and do not simplifyingly blame online game companies for some problems in the protection of minors."

It is worth noting that the current document is only a draft for comments, and parties can still raise different opinions until January 22, 2024.

Fu Gang believes that on the whole, the introduction of the "Draft for Comments" means that the regulatory order has gradually returned to normal after the institutional reform, and has released a positive signal to the industry, which is worthy of affirmation. Secondly, after all, the document is a "Draft for Comments", and it is inevitable that there will be imperfections, and it is necessary for all sectors of society, especially the industry, to actively speak out, and put forward reasonable opinions and suggestions in combination with the actual situation of the industry, so as to make the final provisions more scientific and more grounded, and there is no need to over-interpret them before they are officially implemented. "Of course, I also hope that the competent authorities will be able to speak widely and prudently finalize the draft. He said.

"Before the boots actually hit the ground, manufacturers don't need to be overly pessimistic. At present, there are only two things that can be done: one is to quickly develop and launch a game that has already obtained a version number, and the other is to operate the product that has been launched. Lin Yong said bluntly to 21 reporters.

For more information, please download the 21 Finance APP