The9 Facing Bankruptcy If WotLK Not Approved
The company that operates World of Warcraft in China, The9, has told the General Administration of Press and Publication (GAPP) that it will go bankrupt unless the game's second expansion, Wrath of the Lich King, is approved by the regulator.
Reports last week claimed that The9 was having trouble getting the game past the regulators. A substantial sum was paid the the game's developers, Blizzard Entertainment, in April last year to secure the licence, and without the sale of the expansion The9 will not be able to recover the cost. An article on JLM Pacific Epoch reports GAPP has said that the issue lies with the game's unhealthy content, which was the same problem faced by WoW's first expansion, The Burning Crusade. This resulted in a delay while the game had to be redesigned to remove some of the scarier aspects, namely covering exposed bones on skeletons and replacing corpses with graves.
It seem that China gets stricter on foreign online games. Yesterday, JLM Pacific Epoch reported that the General Administration of Press and Publication (GAPP) will "tighten approval criteria for online game imports in an effort to protect the development of online game enterprises and avoid the excessive penetration of foreign culture among Chinese youth."
The General Administration of Press and Publication (GAPP) intends to tighten approval criteria for online game imports in an effort to protect the development of domestic online game enterprises and avoid the excessive penetration of foreign culture among Chinese youth, reports Sohu quoting GAPP Technology and Digital Publishing Bureau Director Kou Xiaowei on March 16. GAPP will move from inspection standards that treat domestic and foreign games equally to become more strict when dealing with influential games such as The9's (Nasdaq:NCTY) licensed MMORPG World of Warcraft, said Kou.
GAPP is scheduled to hold a meeting with online game companies on Wednesday to disseminate information on approval processes, new import-directed policies, the fatigue system and other topics.
The central government supports the export of domestic online games as a way to promote Chinese culture, and the GAPP plans to organize an overseas roadshow for domestic companies to cultivate efforts abroad.
This report makes the situation sound like censorship wrapped in the warm blanket of protectionism, but is GAPP's growing concern over content just saber-rattling, or should foreign online game companies and operators be genuinely worried? The situation may be clearer after Wednesday, when GAPP will hold a meeting with online game companies and operators, explaining the new approval processes and import policies that will affect China's online gaming industry.