(Yicai Global) July 13 -- Tencent Holdings, the world’s biggest video games company, and its rival NetEase were not among the holders of 67 gaming licenses issued by the country’s media watchdog yesterday. The two giants were also passed over in the previous two batches released this year.

The National Press and Publication Administration only started to issue gaming licenses again in April after an eight-month hiatus. So far this year, over 170 games from developers such as MiHoyo Technology, IGG and Baidu have been granted permits. iDreamSky Technology Holdings and Yoozoo Interactive have even obtained two each.

Tencent and NetEase have probably been overlooked as regulators want to create more opportunities for small and medium-sized companies or perhaps there are some issues with the two firms’ products, Zhang Yi, chief executive of iiMedia Research, told Yicai Global.

It is quite reasonable for gaming licenses to first be issued to smaller developers, as with little reserves they face a crisis in short-term cash flows without the permits, whereas larger game publishers that already have a number of titles on the market can tide over these times quite well, senior management at Shenzhen-based Tencent said in May.

“The issuing of game licenses has returned to normal,” Wang Xi, vice president of Shenzhen-based iDreamSky, said yesterday.

New licenses used to be issued every month but things changed last year when authorities began to tighten up regulation of the market. Last August, new rules were introduced cutting the amount of time minors can spend on online gaming to three hours a week in a bid to curb ‘youth gaming addiction.’ Since then, online gaming firms can only allow under-18s to play between 8 p.m. and 9 p.m. on Fridays, Saturdays and Sundays as well as on public holidays.

Editors: Shi Yi, Kim Taylor