What happened: China’s State Administration of Radio and Television has not granted licenses for new games since March 2018, causing a drastic slowdown in industry growth. Mobile games have been hit the hardest, with year-on-year growth lunging from 50% to 13%. However, industry players have also attributed slowing revenue growth to other factors including market saturation and the rise of short video apps.
Why it’s important: The lack of approvals comes after the State Administration of Radio and Television (SART) was formed in March to replace the State Administration of Radio, Film, and Television (SARFT), which in turn forms part of a broader push by the Chinese government to strengthen its control over cultural policies. Short video platforms such as Douyin have been some of the hardest hit after numerous crackdowns on “vulgar” and “inappropriate” content.