TENCENT(HK:00700) Mei Ri Jing Ji Xin Wen·2026-01-21 12:53Core Insights - The domestic two-dimensional game market in China is experiencing significant turbulence, with major companies like Tencent facing challenges while others like miHoYo and NetEase are preparing to launch new products [1][5] Market Dynamics - The 2025 report indicates that the domestic two-dimensional mobile game market generated a revenue of 28.281 billion yuan, reflecting a year-on-year decline of 3.64%, primarily due to fluctuations in top products' revenue and underperformance of new releases [1] - The market is showing a clear divide, where leading companies maintain growth through quality content and long-term operations, while smaller firms struggle to break through [1][8] Company Adjustments - Tencent's game "White Corridor" has ceased updates, signaling a strategic shift to optimize resources despite holding a controlling stake in the developer [3] - The company has also exited its investment in Guangzhou Mingzhou Technology, indicating a decisive move away from underperforming projects [4][6] Competitive Landscape - Major players like miHoYo and NetEase are intensifying their competition, with miHoYo focusing on technology-driven projects and NetEase's new game "Code: Infinite" generating significant buzz [6][7] - The industry is witnessing a "military competition" as giants aim to capture future market opportunities through strategic investments and product launches [5][6] Industry Trends - The market is shifting towards "premiumization," where high-quality content and user engagement are becoming essential for survival, leading to a significant shake-up in the industry [8] - The success of titles like "Ningchao" from Kuro Game, which saw a 66% revenue increase in 2025, exemplifies the importance of frequent updates and global operations in maintaining product relevance [9]