Despite a lull in new game titles being approved, revenue in China’s gaming sector should recover by late 2019 and rebound by 2020, but gaming companies will continue to feel pressure on their profit margins, according to a report by market research firm Niko Partners

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. The Ministry of Culture, which also oversaw approvals is also in the throes of restructuring.

However, the regulatory upheaval has yet to be completed and new game titles haven’t been published since March, resulting in diminishing revenue and slow growth in the industry. Niko Partners says the restructuring is due to be complete by the end of 2018, but agencies have until April 2019.

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Chris Udemans

Christopher Udemans is a Shanghai-based data and graphics reporter. He covers Chinese artificial intelligence, mobility, and cybersecurity. You can contact him at chrisudemans [at] technode [dot] com.