Earlier this week, we reported that China had banned sales of Monster Hunter: World from WeGame. It turns out that was simply the opening salvo. China has suspended licensing approval for all new PC, console, and mobile games entering the country.

The decision relates to a power shakeup within the nation’s vast bureaucracy. Two departments—the National Radio and Television Administration and the Ministry of Culture—handle licensing for games in China. The former has not granted any licenses for four months, while the latter’s criteria are both incredibly strict and rather vague.

Chinese developers and publishers have told me that the process is occasionally drawn out due to—more or less—laziness. Rather than examining an entire game and sending back a full report, the departments often order the devs to resubmit after finding a single objection. They then repeat this process for every flaw, doing the minimum amount of work possible each time. This allows the bureaucrats to put off their jobs for as long as possible. 

Or at least it did while the government was still approving games.

The freeze could end the moment China sorts out the two departments, but even then, developers may have to wait months for approval. The process takes at least a few months, so Chinese gamers will have to continue to wait for any new titles to hit their libraries. According to sources, foreign publishers have lost nearly $7 billion in market value since the licensing freeze announcement. This could have a major impact on the number and quality of games released in the near future.

This hurts not only gamers, but also industry giants. The value of Tencent, China’s gaming/social media behemoth, has dropped $160 billion over the past six months. Taking away the company’s primary revenue stream is no way to recoup those losses.

China’s history with gaming resembles that on-again/off-again couple you hated in high school. China is producing a number of absolutely incredible indie devs, and PUBG remains absolutely beloved. However, the mobile version hasn’t earned Tencent big bucks they envisioned, and censorship demands have turned the game into a propagandized farce. The government continues to ban streaming sites, and consoles still struggle to find proper footing. Gaming’s long road to prominence in the world’s largest market continues to be paved with potholes and red tape.

We will keep you up to speed on all things censorship-related. Be sure to follow DFTG on Twitter and Facebook for more gaming updates!