As we wrote earlier here on AskBrokers.com Tencent (TECHY US) is getting hit from all corners, let be regulation or emerging markets. Today further negative news were announced from the company.
The company announced today that is bringing a new online system that will double-check the age of the players on its games with a national security database in China. Techcrunch writes:
The new real name-based registration system will initially be mandated for new players of its popular Honour of Kings fantasy multiplayer role-playing battle game.
The new checks will be introduced starting 15th of September with Honor of Kings, to later on gradually being introduced to other games as well. This will be the first of its kind in the gaming industry.
Tencent (TECHY US), announced;
“Through these measures, Tencent hopes to continue to better guide underaged players to game sensibly,”
As result of this, Tencent (TECHY US) shareprice dropped more than 3% trading in Asia. Other gaming companies such as China Youzu Interactive and Perfected world both dropped more than 5%. Listed in the US, beyond Tencent (TECHY US), Netease (NTES US) is another gaming company to keep on your radar..
Regulation is becoming more and more a focal point for many Internet companies around the world. Expect more of these types of regulatory frameworks being imposed as well share prices of these companies being affected.