As one of the leading online game companies in China, Jili Games has had to navigate a complex web of licensing requirements that significantly affect its business strategies and day-to-day operations. Licensing plays a crucial role in the online gaming industry in China due to government regulations aimed at controlling content and protecting minors.
Obtaining Proper Licenses
For Jili Games to legally operate and monetize its online games in China, it must obtain several key licenses from regulators. This includes an Internet Culture Operation License and an Online Publishing Service License. The approval process for these licenses is lengthy and complex, often taking months or even years to complete.
These licenses govern what type of content can be included in the games. Games with violent, gambling, or ideological elements typically face much more stringent review and may be rejected outright. Jili has had to carefully design games that avoid sensitive content while still being commercially appealing.
Impact on Game Development
The licensing requirements have a major impact on Jili’s game development process from the onset. Game concepts and storylines must be crafted with the license approval process in mind, steering clear of anything that may be deemed inappropriate or too mature by regulators.
Teams of compliance professionals are involved throughout development to vet game elements like graphics, dialogue, gameplay mechanics and more. Jili has had to delay or even cancel some game launches after failing to obtain the necessary approvals.
Monetization Challenges
Even after games launch, the licensing regimes continue to affect Jili’s monetization strategies. Many typical revenue streams like loot boxes or paid randomized item drops are heavily restricted or banned outright under China’s youxuan rules aimed at curbing gambling-like mechanisms.
As a result, Jili has had to get creative with monetization avenues like subscriptions, battle passes, and selling cosmetic item skins directly. It has also put more focus on mobile advertising revenues.
The fluid licensing landscape also impacts Jili’s ability to update and make changes to existing games already in the market.
Looking Ahead
Licensing will likely continue to be one of the biggest challenges facing Jili Games. However, the company has built up experienced compliance teams and fine-tuned its strategies over years of operating under these restrictions.
Some industry analysts believe China may loosen its gaming regulations and approval processes in the coming years as it seeks to drive growth in this lucrative tech sector. If so, that could help ease some of the development and monetization constraints Jili currently faces.
But for now, deftly navigating the country’s licensing regimes remains key for Jili to successfully develop, launch and monetize its games for China’s massive gaming market.