CMGE(HK:00302) Xin Lang Zheng Quan·2025-07-31 06:36Core Viewpoint - The corruption case involving Jiang Haitao, former general manager of the Starry Sky Studio under Zhongyou Mobile, has revealed severe misconduct linked to the failure of the game "Xianjian World," leading to his criminal detention and ongoing investigations [1][2]. Group 1: Corruption and Project Failure - Jiang Haitao's corruption involved manipulating contracts and misappropriating funds during the development of "Xianjian World," which had over 300 million yuan invested but resulted in poor player feedback and low-quality output [2][4]. - The project faced significant issues such as low player retention rates and poor performance, attributed to the misallocation of funds and strategic mismanagement [2][4]. Group 2: Industry Context and Response - The gaming industry is currently undergoing a compliance overhaul, with several companies tightening audits and addressing corruption amid a shrinking market environment [3][4]. - High dependency on outsourcing in game development has created opportunities for corruption, particularly in areas like art and special effects, where costs can account for 30%-50% of total development expenses [3]. Group 3: Implications for Zhongyou Mobile - The incident has severely impacted Zhongyou Mobile, which reported a net loss of 241 million yuan in the first half of 2024, a fivefold increase year-on-year, and saw its stock price plummet over 70% [4]. - The failure of "Xianjian World" has diminished the value of the "Xianjian" IP, which is now viewed as overexploited due to low-quality derivative works [4]. Group 4: Industry Transformation - The case signifies a broader crisis in the gaming industry, marking the end of an era characterized by reckless growth and the need for a shift towards more sustainable and meticulous operational practices [5]. - Establishing robust anti-corruption measures and effective management systems is crucial for the industry's future, ensuring that creativity and commercial value can thrive in a new phase [5].