"With a lower revenue for online games, the ad industry would be impacted too," he said.
UBS estimates online games account for about 20% of the online ad industry's revenue.
BEIJING — China's proposed gaming rules would hit smaller developers more than large ones, while also reducing overall online advertising revenue, according to UBS.
It's "very common" for online games to encourage daily sign-in and offer rewards for the initial in-app purchase, UBS's Fong said.
"As the online game is a very creative industry," he said, "we believe the game developers would likely design other means to attract and retain users."
Persons:
Kenneth Fong, BEIJING —, UBS's Fong, Fong
Organizations:
UBS, Christmas, Gaming, National Press, Administration
Locations:
China, Hong Kong, BEIJING, Beijing