传媒行业专题研究：游戏行业专题：市场景气，产品突破，AI赋能，政策回暖

Investment Rating - The report maintains a "Market Perform" rating for the media industry, indicating a synchronized performance with the broader market [1]. Core Insights - The domestic gaming industry is expected to show significant growth in 2024, driven by a stable increase in market size, a rise in the number of players, and improvements in ARPU (Average Revenue Per User) [6][9]. - The successful launch of high-quality games like "Black Myth: Wukong" marks a breakthrough in the domestic gaming sector, enhancing confidence in the development of premium games [6][29]. - The integration of AI technology into the gaming industry is accelerating, improving both the efficiency of game development and the creativity of game content [6][67]. - A favorable policy environment is emerging, with increased support for the gaming industry from both national and local governments [6][19]. Summary by Sections 1. Gaming Market Growth - The domestic gaming market is projected to reach approximately 325.78 billion yuan in 2024, with a year-on-year growth of 7.53% and a user base of about 674 million, reflecting a historical high in market metrics [9][19]. - Mobile games dominate the market, accounting for over 70% of the gaming revenue, while client games and console games also show significant growth [13][19]. 2. Economic and Cultural Policy Support - The report highlights a robust economic outlook, with China's GDP expected to grow by around 5% in 2025, which is likely to boost entertainment consumption [19][20]. - Increased government support for cultural and gaming industries is noted, with policies aimed at expanding game content supply [19][20]. 3. Valuation and Market Activity - The gaming index has outperformed benchmark indices, with recent trading activity showing increased interest from institutional investors [26][27]. - Although overall valuations are slightly above historical averages, key gaming companies are considered to have reasonable valuations [27][29]. 4. Investment Recommendations - The report suggests focusing on gaming companies with strong product pipelines, robust R&D capabilities, and reasonable valuation levels, specifically mentioning companies like Kaiying Network, 37 Interactive Entertainment, and Perfect World [4][6]. 5. AI Integration in Gaming - AI technology is increasingly being adopted in the gaming sector, with over 99% of surveyed companies incorporating AI tools to enhance production capabilities [67][68]. - The use of AI is expected to foster innovation in gameplay and improve user experience through more natural interactions with NPCs (Non-Player Characters) [67][69].