Game changer: Tencent to limit playing time, check the credentials of young Chinese



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Beijing-

Tencent Holdings
Ltd.

TCEHY -0.08%

says it will verify the identity of all its video game players in order to significantly limit the online gambling time for young people in China, including limiting children 12 and under to one hour daily play.

A verification system will check the identity and age of players against police databases, and will be in place for 10 mobile games by the end of this year, said Tencent Monday, based in Shenzhen. He plans to expand the system to all titles by 2019.

The restrictions are the most comprehensive gambling limits ever imposed here, and come when the authoritarian Chinese government strengthens its control over video games, which have been attacked by the state media for their addictive quality and sometimes violent content.

"This is an innovative action: to verify the identity," said Chenyu Cui, senior research analyst at IHS Markit.

China has more than 600 million players and Tencent's verification system could involve checking hundreds of millions of people.

The verification system was set up for the first time in September on the mobile game "Honor of Kings", which became so popular among Chinese students that many would have missed their homework to play it late at night.

After verifying their identity, players 12 years of age and under will be limited to one hour of play per day and no play between 21:00 and 21:00. and 8 am, according to a Tencent statement posted on his official social media account. Players ages 13 to 18 will be allowed to play up to two hours a day.

"Minor protection is an important task to which the whole society pays special attention," the company said. Tencent "has a high degree of responsibility and obligation".

The company has qualified the identity checks and age restrictions of "health care system" and is committed to using advanced technology to protect young people in the future.

Tencent derives most of its revenue from video games. It was slammed by the government's freeze on the sale of new securities, which was imposed in March as part of a regulatory reform. Game executives say the freeze could continue until next year.

Tencent shares fell nearly 4% Monday to 292.40 dollars Hong Kong, and plunged nearly 40% since the peak reached in January.

The company announced in August that its second quarter earnings had dropped 2% from the previous year. This was the first decline since 2005. Analysts expect the company's third quarter results, expected on November 14, to be affected by the regulatory freeze.

On Monday, on Chinese social networks, many reacted to the announcement of these restrictions stating that enterprising young players will bypass the limits by borrowing phones from their parents or other adults.

South Korea has been imposing age restrictions on games for several years, but determined young players have found ways around the system.

"
This action is innovative: perform the verification of the identity.
"


-Chenyu Cui, IHS Markit

In response to a request for comment, Tencent emphasized its official statement and said more details would be announced later. Last month, he stated that he was testing facial recognition software in "Honor of Kings" to verify the identity and age of the players.

Tencent's announcement on Monday after last week's People's Daily praise to the government that the "Honor of Kings" audit system is considered "an important step in taking social responsibility."

Write to Shan Li at [email protected]

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