Tencent, Netease share prices drop after Chinese State Media outlet takes a jab at online games

Other companies also affected

After an article published in Economic Information Daily, where a Chinese State-affiliated media outlet criticized online video games and called them “spiritual opium”, the stock prices of video game companies took a hit due to shares being sold off globally as reported by Reuters. The share prices of companies like Tencent, the country’s largest video game firm, Netease, XD Inc. and GMGE Technology experienced a sharp drop as panicked shareholders triggered selloffs.

Global concern regarding gaming addiction is on the rise

The article from the news outlet, which has now been taken down also mentioned Honor of Kings, Tencent’s popular MOBA title for China available on iOS and Android and developed by TiMi Studios. The article cited a student who claims that their classmates spent more than 8 hours a day playing the game.

No industry or sport should prosper by eradicating an entire generation,” was another statement in the article, given by an academic at a state institution. The article led to panic-induced unloading of stocks of companies like Tencent and Netease, leading to a considerable drop in their share prices.

The stock prices of Tencent, Netease, and XD Inc. dropped, share prices of Tencent, Netease, and XD Inc. dropped
The stock prices of Tencent, Netease, and XD Inc. dropped

For a while now, a lot of concern has been raised globally regarding the amount of time minors are spending staring at screens, and how video game addiction is on the rise. Curbs already exist with the authorities and companies that publish games putting limits on the amount of time that can be spent on a game.

Tencent, Netease share prices dropped: What else is expected

The Economic Information Daily, however, believes that current curbs aren’t enough to prevent game addiction. With support from legal experts and professors, the outlet believes that more mandatory means should be implemented to increase the social responsibility of video game companies, who’ve already been under pressure from the authorities for a while now.

While comparing video games to drugs is quite extreme, gaming addiction, especially among growing children and young adults, is still quite a big issue in today’s world, and curbs to combat it might be more necessary than one might think. It seems very possible that stricter measures are going to be implemented soon.

What do you think about the statement of the media outlet and the drop in prices of Tencent and Netease shares? Let us know in the comment section below!

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