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The addictive nature of video games, designed to keep players in the game for as long as possible, may make investors happy, but some are now warning that a regulatory crackdown could be coming for the industry.
In a new research report, Jefferies said that a growing emphasis on the side effects from hours spent gaming — fueled by design features that encourage users to stay in the game — could lead to increased oversight and headwinds for gaming companies.
“We see addiction and possible related regulatory, litigation or taxation consequences for the video…