Regulators have hit the pause button on China's burgeoning gaming industry.
China has halted the approval of new game licenses due to a "restructuring of power" in government agencies, Bloomberg reported on Wednesday.
In China, game companies need to gain approvals from both the National Radio & Television Administration and the Ministry of Culture & Tourism in order to launch new games and make money in the game, Bloomberg reported. Because both agencies are reportedly going through personnel changes and shifting of responsibilities, the Chinese government has frozen the license approval process until further notice.
Tencent, one of the biggest game developers in China, has reportedly lost more than $160 billion in market value since January, and smaller companies are struggling to survive.
The game giant's profit also reportedly fell for the first time in at least a decade, partially due to its inability to profit from its most popular games, such as PlayerUnknown's Battlegrounds.
Although the mobile game is very popular, without licensing approvals, it can't create potentially lucrative new versions, according to ifanr. The game has more than 169.7 million installations as of August, Bloomberg said.
It's unclear when the government agencies will resume duty. The National Radio & Television Administration's website hasn't updated information regarding game approvals since March.
China's National Radio & Television Administration and the Ministry of Culture & Tourism couldn't be reached. Tencent didn't immediately respond to requests for comment.
Follow the Money: This is how digital cash is changing the way we save, shop and work.
CNET Magazine: Check out a sample of the stories in CNET's newsstand edition.