China Halts Special Approval Process for New Games

China's regulators have ended the issuance of game licenses through a stopgap approval process, Bloomberg reported Wednesday, citing people familiar with the matter. The move would close the last known official path for making money from new titles in the world's biggest gaming market. From the report: Licenses are no longer being granted through a process known as the 'green channel,' used for testing both domestic and foreign games, said the people, who asked not to be identified because the matter is private. The approval mechanism had been in place since at least August, following the government's decision earlier this year to restructure how it reviews video games for violence, gambling and sensitive topics. The new restrictions in the $38 billion market threaten the fortunes of game companies such as Tencent Holdings and NetEase and add to the uncertainty about the Communist Party's long-term plans for regulating the industry. While it's unclear why Beijing has shut that window, the government has stepped up its oversight of an industry it sees fomenting addiction, myopia and other ills among the country's youth. Some analysts had anticipated that the broader freeze would end by September. They had seen the green channel as a temporary solution to carry the industry until then.

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