Recently China has given 32 "Waizi" licenses to foreign games including Tencent and Nexon's Mobile DnF game after years of regulatory delays.
The go-ahead DNF in the world's largest gaming market sent a positive vibe among the developers as their share surged.
Tencent gained nearly 6% after the news, its biggest daily gain since July 2023.
Meanwhile, Nexon's stock hit its upper limit in Tokyo trading, poised for a record daily increase of over 20%.
Mobile DnF failed to pass Chinese Regulatory muster for years
Dungeon & Fighter Mobile was launched in Korea in March 2022.
Developed by the Korean Company Nexon, Dungeon & Fighter Mobile is the mobile version based on PC version Dungeon Fighter Online (DFO).
DFO is multiplayer beat ’em-up action RPG already available in China which was developed by its subsidiary Neople and published by Hangame in 2008.
DFO is wildly popular in China and to cash this opportunity Nexon decided to launch its mobile version focusing on the Chinese market.
Nexon estimated the title contributed nearly a quarter of total sales.
But Chinese regulators froze approvals of new games for months last year during a revamp of rules aimed at curbing gaming addiction among minors.
Nexon previously delayed Mobile DnF's launch in 2020 to comply with China's restrictions.
Its release in China could significantly boost revenue.
The Chinese gaming Tencent giant jointly developed Mobile DnF with Nexon and going to publish it.
Mobile DnF gained 60 million preregistrations in China before its planned August 2020 launch, demonstrating tremendous interest.
China Approves 32 Foreign Games
As per The Korea Economic Daily, Friday, Feb. 2, the Chinese Regulator approved 32 foreign game titles to be published in China.
China basically issues two types of licenses for gaming developers
"Neizi" license - for local companies - simple process
"Waizi" licenses -For foreign companies - but have to go through a strict evaluation process
Alongside Nexon, Neowiz Games's Cats & Soup mobile game and NetMarble's The King of Fighters All-Star game title also get the Waizi.
Chinese regulators appear to be softening their stance
The approvals, which included several Nintendo Switch games, indicate it's business as usual despite lingering worries about China's regulatory intentions.
In December, proposed rules appeared to signal tighter control, particularly a cap on in-game spending whose limits were unclear.
This draft spooked investors.
However, regulators have since hinted they may soften some harsh proposals after industry feedback.
The public comment period ended January 22, with final rules expected soon.
For Tencent and Nexon, Mobile DnF's approval eases pressure on their pipelines.
It also buoys investor confidence in China's oversight as less extreme than feared.
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