Roblox shares (ticker: RBLX) fell 4.9% to $ 81.22

Activision Blizzard

(ATVI) decreased 1.9% to $ 80.88,

Take-Two interactive software

(TTWO) fell 1.2% to $ 158.40 and Electronic Arts (EA) rose 0.3% to $ 143.38. American certificates of deposit

Tencent Holdings

(TCHEY) decreased 1.2% to $ 58.23.

According to a Chinese press release, the new rules will apply to citizens under the age of 18 in effect on Wednesday. All online gaming accounts must be connected to the systems of the press and publishing system and must use real name registration and logins.

Tencent makes several popular online games available in China as well Fortnite, which has gained popularity all over the world. It said that since 2017, it has been researching and applying new technology to protect minors. A spokesman said the company is complying with government requirements. The share of minors playing online games in the company’s income is small.

Take-Two declined to comment. Activision, EA and Roblox did not respond to requests for comments.

Activision is exposed to the Chinese market through it Call of Duty concession. The mobile version became available there in December. According to market data provider Sensor Tower, mobile game revenue was $ 14 million in the first week. The game is expected to generate billions of dollars in consumer spending worldwide a year, executives said recently.

“China accounted for less than 5% of our net reserves last year, and as you know, we have a long history of adapting and responding to changes in the regulatory environment there,” Armin Zerza, CFO, said in the company’s August earnings call. .

Take-Two does not disclose specific information about China, but said in its latest quarterly application that its NBA 2K Online is China’s best online computer game with more than 53 million registered users. Earlier this month, CEO Strauss Zelnick asked about China’s regulatory risks in an incoming invitation that it “is a big market for us” and that “there is a lot of positive going forward”.

Barclays analyst Mario Lu estimated last year In fiscal 2020, NBA 2K Online generated $ 37 million, or 1% of total revenue for the year. Lu has previously estimated that EA’s revenue from China is about 2% of its total sales.

Virtual sandbox developer Roblox accounted for approximately 7%, or $ 33.1 million, of its second-quarter revenue from the Asia-Pacific region, including Australia and New Zealand. CEO David Baszucki asked about changes in the Chinese economy during the call for arrivals earlier in August and said the company has a ten-year vision of its plans there.

Roblox sees itself as an educational company that teaches people to code and social business, he said. “So our answer is definitely not the answer,” Baszucki said. “It’s to do exactly what we’ve done.”

Jefferies analyst Andrew Uerkwitz said Monday Barronin that Chinese regulatory measures have made him wary of Roblox’s potential opportunities in that market, and is concerned that the new deadline will make China less profitable for Roblox.

Write to Max A.Cherney at [email protected]

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