Tencent Tumbles After Media Calls Gaming “Spiritual Opium”

Share post:

Shares in Tencent Holdings Ltd are set to fall on Tuesday to their lowest level in a decade after a Chinese state-run media agency described online video games as “spiritual opium,” fuelling concerns that the sector could face tough regulation.

China’s largest social media and video games company lost more than 10% in morning trading, losing nearly $60 billion through its market capitalization.

The newspaper mentioned Tencent’s flagship game, “Honor of Kings,” which it said was the most popular online game among Chinese students, who often played up to eight hours a day.

Authorities have sought to limit the hours teenagers can play online video games, and companies like Tencent have introduced anti-addiction systems that seek to limit young users’ game time.

Citing legal experts and professors, The Economic Information Daily said the current restrictions are not effective in preventing youth addiction, and that there should be more “mandatory means” to increase the social responsibility of video game companies.

Tencent is already under intense pressure from increased regulation on online platforms, having been excluded from exclusive music copyright agreements in July and fined for unfair market practices.

Tencent did not respond to requests for comment.

For more information, read the original story in Reuters.

SUBSCRIBE NOW

Related articles

Intel CEO Pat Gelsinger Retires Amid Record Losses and Ongoing Restructuring

Intel CEO Pat Gelsinger has announced his retirement effective December 1, marking the end of a challenging tenure...

Qualcomm Explores Potential Acquisition of Intel

In a shocking turn of events in the semiconductor industry, Qualcomm has, as reported in the New York...

Intel’s contract manufacturing hits setback with quality issues

Intel’s contract manufacturing business has encountered a major setback after silicon wafers produced for Broadcom failed to meet...

Dell has another major round of layoffs

Dell has initiated another round of layoffs, affecting a significant number of employees, including long-term company veterans. HR...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways