Nintendo (NTDOY) , which earned $111.1 million from mobile game "Pokemon Go" in the six moths ended September, is unlikely to bolster this number in China any time soon.
The country's state censor will not license augmented reality games like "Pokemon Go" until evaluating their possible security risks, Reuters reports.
"Pokemon Go" players have been lured to certain areas by other users and later robbed. The game has also led to injuries as players lose track of their surroundings, and has provoked privacy concerns given its reliance on geolocation.
As the world's largest mobile games market, China represents a significant opportunity for video game developers such as Nintendo.
"Access to China is critical for any firm active in mobile gaming, including Nintendo, as mobile gaming continues to grow into 2017," Joost van Dreunen, CEO of gaming industry tracker SuperData Research, said by email.
Mobile gaming generated $40.6 billion in worldwide revenue in 2016, and the market is expected to grow to $44.8 billion this year, according to SuperData Research.
"Pokemon Go" alone brought in $206.5 million of revenue in its first month, setting a world record among mobile games. The game also set a world record for most downloads in its first month, with 130 million.
Nintendo receives only a fraction of the game's total profits, however. The Japanese company owns a portion of Pokemon Co., which produced the game alongside Alphabet (GOOGL - Get Report) spinoff Niantic.