Grand Theft Approval: A turning point for MENA game regulations - New Niko Partners blog post
After 12 years since their original launch in 2013, GTA V and GTA Online are finally making their official debut in Saudi Arabia and the UAE. Both titles will carry a 21+ age rating—notably higher than the standard 18+ rating applied in other markets. Niko Partners analyzes this approval as a notable sign of evolving regulatory attitudes in the MENA region, as it could pave the way for more games to be approved without content change requirements.
ByteDance acquires mobile game developer Flow Entertainment
ByteDance has reportedly resumed M&A activity in the video games industry according to Chinese media reports. The report states that ByteDance subsidiary Moonton acquired Hangzhou based Flow Entertainment in late June 2025. While the transaction amount remains undisclosed, the acquisition signals ByteDance's renewed focus on building out its game publishing and development pipeline, more than a year after it downsized its gaming operations.
Why this matters: Founded in 2016, Flow Entertainment is known for titles such as Figure Story, Warp Knights, Gunslinger, and Warring States Chronicle. Notably, Figure Story was co-published in Japan by ByteDance's Nuverse and in Korea by Bilibili, gaining traction among niche fans of ACGN-themed idle RPGs, leveraging figurine-based characters and stylized visuals. Flow’s output complements ByteDance's historical focus on ACGN content, which resonates with Gen Z gamers and fits well within the TikTok ecosystem for cross-media promotion.
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Shanghai government to pilot new game approval process for foreign games
The Shanghai Municipal Government has introduced a new policy titled "Several Measures for Shanghai to Promote the High-Quality Development of the Software and Information Service Industry" on July 7. Article 7 introduces a new pilot policy that will allow games developed by foreign-funded enterprises based in Shanghai to be treated as domestic titles during the approval process. This could exempt these games from the limited import license quota, speed up approval times, and lead to an increase in the supply of games from overseas developers.
Why this matters: China's import game approval process has long been constrained by a quota system which limited import game approvals to 110 titles in 2024, compared to 1,306 domestic games. While certain loopholes have existed in the past, this is the first time that foreign games will be able to go through the domestic approval process. Shanghai is home to a dense cluster of foreign game companies and international tech giants, including Epic Games, Unity, Ubisoft, EA, Riot Games, Supercell, Bandai Namco, Sony, Apple, and Google. Specifics of the policy and how foreign firms can fully benefit have yet to be disclosed.
Link to original article (Chinese) →
Valorant Mobile achieves 40 million pre-registrations ahead of launch
Valorant Mobile has achieved over 40 million pre-registrations in China just ten weeks after signups opened on April 21, 2025. The milestone surpasses the launch momentum of other major titles, including League of Legends: Wild Rift and hit miHoYo titles like Genshin Impact and Honkai: Star Rail. Developed jointly by Riot Games and Tencent's Lightspeed Studios, Valorant Mobile is positioned to be a strategic mobile extension of Riot's successful PC hero shooter.
Why this matters: The PC version of Valorant has been a major success in China since its official launch, recently peaking at over 2 million concurrent players. The mobile version will debut in China ahead of a planned global rollout. Tencent is also leveraging the title's momentum for esports, having partnered with smartphone brand OnePlus to launch an official Valorant Mobile esports tournament later in 2025.
Where Winds Meet to be a PS5 console exclusive for six months
NetEase Games and Sony Interactive Entertainment have confirmed that Where Winds Meet, an open world wuxia RPG, will be console exclusive to the PlayStation 5 for six months. The game originally released in China on PC in December 2024 and mobile in January 2025, with a global release across PC, Mobile and PlayStation 5 later this year. While not a major story on its own, the announcement is part of a key strategy by NetEase and other Chinese game companies to secure exclusivity contracts with console platform holders to partially offset high development and marketing costs.
Why this matters: NetEase previously partnered with Xbox to exclusively launch titles such as Naraka Bladepoint on its consoles, with a one year exclusivity window. Chinese game developer Leenzee Games, the developer of Wuchang: Fallen Feathers, is launching the game on both PS5 and Xbox Series X|S, but has signed an exclusivity deal to launch the title into the Xbox Game Pass subscription service on day one. As Chinese video game companies aim to tap into a global player base on console, beyond the traditional mobile and PC audiences they usually cater to, many are turning to exclusivity deals as a way to cover marketing costs.
Riot Games to launch Riftbound physical TCG in China first
Riot Games has announced that its upcoming physical trading card game, Riftbound, will debut in China on August 1, followed by an English-language global release in late October 2025. This launch strategy highlights Riot's prioritization of the Chinese market, with the goal of aligning China and global release schedules starting in 2026. Unlike traditional TCGs, Riftbound introduces a scoring system that emphasizes control of battlefields to earn up to eight victory points, signaling a shift toward more strategic, board-control oriented gameplay.
Why this matters: China represents a significant opportunity for Riftbound, given the limited penetration of international TCGs. While Pokemon has built a presence, franchises like Magic: The Gathering, One Piece, and Lorcana have struggled to gain traction. In contrast, Riot's League of Legends IP enjoys strong brand recognition and cultural resonance in China, offering a robust foundation for Riftbound's adoption. If successful, Riftbound could establish Riot as a credible player in China's emerging tabletop games market and offer a new monetization vertical for its Legaue of Legends IP.
Side (Formally Pole To Win) will open new studio in Riyadh, Saudi Arabia
Game services provider Side, formerly known as Pole To Win, has announced a strategic partnership with Savvy Games Group to open a new co-development studio in Riyadh, Saudi Arabia by Q4 2025. The Riyadh studio will provide services including game audio, co-development, and localization, addressing the growing demand for regionally relevant, bespoke content in Arabic and English.
Why this matters: For Savvy Games Group, a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund, this partnership continues its strategy of developing domestic game development capabilities to achieve the goals of the National Gaming & Esports Strategy and establish the Kingdom as key global game development hub. The move marks a significant expansion into the MENA region for Side which rebranded in March 2025 to bring its 1518 Studios, audio services provider SIDE, and Ghostpunch Games under one banner.
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Garena released Free Fire anime teaser and trailer
Garena and KADOKAWA have announced the first teaser and trailer for the upcoming anime adaptation of Garena Free Fire. The story will feature dynamic action centered around iconic character Kelly as she unravels a hidden conspiracy. The upcoming anime blends familiar in-game music by Sus4is, directed by Ken Takahashi, and produced by studio CANDY BOX. The anime will be broadcasted and streamed worldwide.
Why this matters: Anime adaptations of video games is not a new trend. While Japanese games are obviously more likely to receive animated series such as the Castlevania series, Fate series, and Persona series, non-Japanese games are also increasingly seeing animated series as a way to increase their popularity. For example, Cyberpunk 2077 was adapted into an anime titled "Cyberpunk: Edgerunners". The anime adaptation received positive feedback and won Anime of the Year at Crunchyroll’s Anime Awards. League of Legends-based Arcane series, while not an anime in the strictest sense, has also seen positive feedback.
Japan game industry associations release statement against rise of shocking or extreme game advertisements
The Computer Entertainment Supplier's Association (CESA), in conjunction with the Japan Online Game Association (JOGA) and the Mobile Content Forum (MCF), has released a joint statement regarding the rise of extreme or explicit video game advertising. The statement addresses a report released by the Japan Advertising Review Organization (JARO) released on July 10, which notes an increase in the number of complaints toward internet advertising, with complaints about online games advertising in particular up 222.9% YoY to 428 cases. These complaints primarily center around sexual or explicit advertisements on websites frequented by children.
Why this matters: In their statement, the industry groups indicate that the majority of these advertisements originate from overseas organizations and that they will work with the government to push for stronger regulations while working with advertising agencies and platforms to implement safeguards for online youth. CESA in particular is a major games industry association, with some of Japan's biggest games companies members or supporting members, such as Nintendo, Sony, Sega, and Capcom, among others. The move is expected to increase scrutiny of overseas companies that operate in Japan.
Events
ChinaJoy
Shanghai, China
August 1-4, 2025
Attendee: Xiaofeng Zeng
New Global Sport Conference
Riyadh, Saudi Arabia
August 23-24, 2025
Speaker: Lisa Hanson