Core Insights - The article highlights the significant presence of Chinese anime games at TGS 2025, indicating a potential boom in the industry for 2026 with major titles like "Infinite," "Eternal Ring," and "Blue Star: Journey" set to launch [1][16] - The closure of the GiGO 1 building, previously a prominent advertising space for miHoYo, marks a shift in the landscape of the Akihabara area, contrasting sharply with the past dominance of "Genshin Impact" [1][29] - Despite the visible decline of miHoYo's advertising presence, its products remain popular in local stores, suggesting a change in strategy rather than a complete withdrawal from the market [6][11] Industry Dynamics - The surrounding business of merchandise, or "Gaozi economy," is increasingly seen as a marketing tool rather than a primary revenue source for game developers, with companies focusing more on enhancing user engagement [9][31] - MiHoYo's recent strategy reflects a shift towards cost-effective marketing, as evidenced by its absence from TGS this year, contrasting with its previous aggressive promotional tactics [11][15] - The rise of new Chinese titles at TGS indicates a growing recognition among Japanese players of these products, suggesting a shift in market dynamics and consumer preferences [13][16] Market Trends - The article notes a distinct difference in the types of games showcased at TGS compared to those in Akihabara, with a focus on new Chinese titles that are actively engaging players through innovative marketing strategies [16][22] - The upcoming release of several high-profile Chinese games is expected to revitalize the Akihabara area, which has seen a decline in its anime culture prominence [29][36] - The competitive landscape for 2024 is anticipated to be intense, with over ten major titles expected to launch, challenging the current market structure and consumer engagement strategies [38][39]

Group 1 - MiHoYo has taken measures against over 260 leakers of unreleased game content for "Genshin Impact" and "Honkai: Star Rail" to protect its intellectual property and maintain operational integrity [1] - The company aims to enhance player engagement and monetization by preventing leaks that could diminish the excitement and anticipation for new content [1] - The gaming industry is experiencing a decline in the popularity of the two-dimensional genre, with a reported 8% decrease in actual sales revenue for the mobile game market in the first half of 2025 [4][5] Group 2 - MiHoYo has been positioned as the fourth largest mobile game publisher in China for over six months, with its revenue growth stagnating compared to competitors like Tencent and NetEase [2][3] - The company has seen a significant revenue increase of 28% due to the successful launch of version 3.4 for "Honkai: Star Rail," which led to a 325% revenue surge in July 2025 [10][11] - Despite the success of "Honkai: Star Rail," MiHoYo's other titles have not reached the heights of "Genshin Impact," indicating a need for innovation and diversification in its game offerings [8][18] Group 3 - MiHoYo is exploring new game development opportunities, with 6-7 projects in the pipeline that cover various popular genres, including a new title featuring auto-chess mechanics [17][18] - The company is facing increased competition in the gaming market, with emerging players like Point Interactive gaining traction and challenging established giants [22] - To maintain its position, MiHoYo must adapt its strategies and potentially expand beyond the two-dimensional genre to achieve sustainable growth [22]

Core Viewpoint - The article discusses the challenges faced by the second-dimensional mobile game market, highlighting a significant revenue decline and the need for innovation in game design to attract players [1][3][33]. Market Overview - The second-dimensional mobile game market generated a revenue of 14.577 billion yuan in the first half of the year, representing an 8% year-on-year decline [1]. - Despite various promotional activities and events, the market does not show signs of recovery, indicating fierce competition among developers [1][3]. Challenges for New Games - New second-dimensional games must compete not only in art and gameplay but also in operational responsiveness to player demands, which often conflict with commercial goals [3][12]. - Players desire higher quality products at lower prices, leading to ongoing tensions between player expectations and developer monetization strategies, particularly regarding character gacha systems [3][12]. Innovations by "Dual Helix" - The game "Dual Helix" has made bold moves by eliminating the traditional stamina system and gacha mechanics, allowing players to obtain characters and weapons directly [10][12]. - The game offers character fragments that can be collected through gameplay or purchased directly, a significant departure from the industry norm [23][25]. - This approach aims to enhance player experience and satisfaction, potentially setting a new standard in the second-dimensional game market [10][12]. Player Engagement Strategies - "Dual Helix" has actively engaged with players by soliciting feedback on game mechanics and proposed changes, indicating a willingness to adapt based on community input [5][10]. - The game has introduced various gameplay improvements, such as modifying mission structures and enhancing visual quality, to create a more immersive experience [29][27]. Industry Implications - The changes implemented by "Dual Helix" may influence the broader second-dimensional game market, challenging existing monetization models and encouraging other developers to rethink their strategies [25][36]. - The article suggests that the industry's reliance on traditional systems like gacha and stamina may be hindering innovation and growth, urging developers to explore new avenues for player engagement and revenue generation [36][38].

Core Viewpoint - The game "Dual Helix," developed by Hero Games' Pan God Studio, is set to officially launch on October 28, 2023, marking a significant shift in the gacha-based monetization model prevalent in the industry [1][3]. Group 1: Game Features and Changes - "Dual Helix" has completed three rounds of testing since its announcement in 2023 and has been showcased at various gaming exhibitions, making it familiar to many players [3]. - The game introduces a new character acquisition method, where players can obtain character fragments instead of using the traditional gacha system [3][5]. - Players can acquire character fragments through daily tasks or direct purchases, allowing for a more flexible strategy in character acquisition [5][7]. - The game also features a similar system for obtaining exclusive weapons, which can be crafted using materials collected through gameplay [7]. Group 2: Industry Impact and Player Experience - The shift from a gacha system to a fragment-based acquisition model represents a significant departure from the traditional monetization strategies in the gacha game sector, which often rely heavily on chance-based rewards [9][11]. - This change aims to alleviate player anxiety regarding character availability and reduce the psychological burden on new players, encouraging them to engage more with the game's content [11][12]. - The removal of stamina limits for dungeon runs further enhances the gameplay experience, allowing players to enjoy the game without restrictions [13][18]. - The game has received positive feedback for its innovative combat mechanics and dual narrative approach, which distinguishes it from other titles in the genre [14][15].

Core Insights - Perfect World reported a revenue of 3.691 billion yuan for the first half of 2025, marking a year-on-year growth of 33.74% [1] - The company achieved a turnaround in net profit, with a net profit attributable to shareholders of 503 million yuan and a net profit of 318 million yuan after deducting non-recurring items [1] - The growth was primarily driven by the performance of the self-developed MMORPG "Zhu Xian World" and a stable contribution from the esports business [1] Financial Performance - The company recorded non-operating income of 185 million yuan, mainly from the disposal gains of the Chengfeng Studio in the first quarter [1] - The gaming segment generated 2.906 billion yuan in revenue, a year-on-year increase of 9.67%, with a gross margin of 68.9%, up 2.38 percentage points from the previous year [1] Business Structure - PC game revenue surged by 70.51% to 1.852 billion yuan, accounting for 50.18% of total revenue, while mobile game revenue fell by 33.04% to 968 million yuan, representing 26.23% of total revenue [2] - The decline in mobile game revenue was attributed to a strategic restructuring of projects, focusing resources on more promising titles [2] New Product Launches - The company accelerated the testing and launch of new products in the second quarter, with several games including "Persona: Nightshade" and "Zhu Xian 2" being released [3] - "I-Huan," a highly anticipated game, has garnered significant attention, with over 3 million taps on TapTap and over 1.5 million reservations on Bilibili [3] Film and Television Business - The film and television segment achieved revenue of 767 million yuan, a staggering increase of 756.35%, with a net profit of approximately 41.72 million yuan [4] - The company has produced several series and is actively developing short dramas, with "The Couple's Spring Festival" surpassing 500 million views [4]

Group 1 - NetEase's "Onmyoji" undergoes significant personnel changes with Zheng Tao appointed as the new producer, aiming to inject new vitality into the long-standing game while maintaining its classic elements [1] - Zheng Tao's deep involvement in the initial stages of "Onmyoji" and his contributions to core gameplay design are expected to enhance player engagement and revenue, potentially boosting investor confidence in NetEase's stock [1] Group 2 - Tencent's new game "Chasing Kaledo" is set to launch in September on PC, iOS, and Android, targeting markets in the US and Japan, marking a strategic move in the competitive two-dimensional gaming sector [2] - The game's unique "motorcycle + beautiful girl" concept and high-quality 3D performance aim to differentiate Tencent from competitors, although high player expectations for quality and narrative may pose risks [2] Group 3 - MiHoYo's multiple nominations for the 2025 GPA Mobile Game Awards highlight its strong market presence, with "Genshin Impact" and "Honkai: Star Rail" nominated for Best Ongoing Mobile Game [3] - The nominations are expected to enhance MiHoYo's brand image and industry influence, potentially attracting more players and increasing game revenue, with award wins further solidifying its competitive advantage [3]

Core Viewpoint - ByteDance has confirmed the news regarding the internal memo about re-initiating its gaming business, despite previously announcing a complete exit from self-developed games [1] Group 1: ByteDance's Gaming Strategy - ByteDance announced a gradual shutdown of its gaming brand, Chao Xi Guang Nian, and a full exit from self-developed gaming, but it continues to engage in game agency and mini-games on Douyin [1] - Two gaming studios under ByteDance, Shenzhen Gravity Studio and Jiangnan Studio, have merged to form Salros Network Technology (Shenzhen) Co., Ltd, with Tencent's investment arm holding a 100% stake in Salros [1] - The industry has mixed views on Tencent taking over some of ByteDance's gaming teams, with expectations of closer cooperation between the two giants in the future [2] Group 2: Tencent's Gaming Developments - Following ByteDance's exit from self-developed games, the activity level of Tencent's flagship game, Honor of Kings, has increased on Douyin, with significant promotional efforts including live streaming events [3] - Tencent has invested 1.4 billion yuan in its party game, Yuanmeng Zhi Xing, with a long-term investment plan that is not capped [3] - DataEye reported that 38% of the advertising for Yuanmeng Zhi Xing was placed on ByteDance's advertising platform, indicating a strategic advertising approach [3] Group 3: Market Insights on Gaming - The two projects taken over by Tencent focus on the high-potential areas of tactical competition and open-world games, which have a strong consumer willingness to pay [4] - The actual sales revenue of the mobile game market for the ACG (Anime, Comic, and Game) sector reached 31.707 billion yuan in 2023, showing a year-on-year growth of 31.01% [4] - The domestic ACG market has limited offerings in the open-world game category, with only Genshin Impact ranking in the top 50 of Apple's bestsellers, indicating a potential opportunity for new entrants [4]

Summary of Conference Call Records Industry Overview: Gaming Industry Key Points - **Market Dynamics**: The gaming industry is experiencing a shift with mid-tier companies performing well in mini-programs and overseas markets due to lower costs and technical requirements. In contrast, leading companies are facing challenges in transformation due to high costs and complex processes. It is anticipated that by the end of 2026 or 2027, these leading companies will leverage their technological advantages to capture market share with higher quality products [1][2][3]. - **Product Delays**: Major gaming companies have delayed the release of several products originally scheduled for the first half of 2025 due to changes in player preferences and the rise of new game genres. This has led to a reassessment of R&D investments to capture market share in the latter half of the year [1][3][4]. - **Mobile Market Competition**: The competition in the mobile game publishing and operation sector has slowed down in the first half of 2025, with increased costs in a saturated market. Companies are shifting towards private traffic strategies to maintain user engagement and reduce costs [5]. - **User Demographics**: Changes in user age demographics are influencing game genre preferences. Younger users prioritize fairness and freedom, leading to increased customer acquisition costs for traditional games. Games emphasizing fair competition and content, such as "Soda Car" games, are gaining popularity [6]. - **Domestic Two-Dimensional Market**: The domestic two-dimensional market is polarized, with leading products attracting significant user bases while mid-tier products struggle to survive. High-quality and innovative experiences are essential for development, as smaller productions face challenges in gaining market recognition [7][11]. - **Overseas SLG Market**: Companies like Yuanqu and Jiangyu have successfully navigated the overseas SLG market by innovating and focusing on niche segments, surpassing the 10 million user threshold. The challenge remains to attract non-SLG users, as only 30% of users have previously engaged with SLG games [8][9][10]. - **High Investment Trends**: The trend towards high-investment, high-quality products is creating barriers for smaller companies. While some can match investment levels, they struggle with gameplay differentiation, leading to a reliance on quality to outperform competitors [12]. - **Mini-Game Market**: The mini-game market is growing rapidly, but profitability remains low due to high platform costs and user retention challenges. Companies are exploring new business models to adapt to changing user expectations [13]. - **Regulatory Environment**: The normalization of licensing policies has stabilized time and cost expectations, promoting healthier industry development. This stability encourages the production of high-quality cultural products and supports their international expansion [19]. - **Emerging Game Trends**: The end-game market is witnessing a steady rise, driven by high-quality domestic single-player games and independent games. The emergence of interactive film games is also noted, although success rates in this area are low [16][17][18]. Additional Insights - **Community Engagement**: TapTap has become a significant player in the market, benefiting from user migration and changing demographics, with a 50%-60% share in new user acquisition for projects launched [2][15]. - **Market Risks**: Certain games, such as a tomb-raiding themed game, show growth potential but face risks due to content similarities and competition. The need for innovation and differentiation is critical for maintaining market position [21][22]. - **Military Simulation Games**: The potential for military-themed games like "World of Tanks" is limited due to their aging user base and gameplay. Without innovation, these games may struggle to attract new users [23]. This summary encapsulates the key insights and trends within the gaming industry as discussed in the conference call records, highlighting both opportunities and challenges faced by companies in this dynamic market.

Core Insights - The game "Brown Dust 2" has gained significant attention in China, particularly after its presence at the BW exhibition, despite its average revenue performance in South Korea [1][5] - The game has seen a remarkable increase in daily active users, reaching a historical high of 280,000 during its two-year anniversary event, and topping sales charts in Taiwan and Hong Kong [2][4] - The game's unique business model, which allows players to draw costumes that are tied to skills rather than characters, has contributed to its resurgence [4][6] Revenue and Performance - Since its overseas launch in 2023, "Brown Dust 2" has not performed exceptionally well in terms of revenue, often hovering around the top 100 in South Korea's sales rankings [2] - The game has maintained a growing level of attention over the past two years, which is atypical for a sequel that initially struggled to build a player base [2][4] Marketing and User Engagement - The marketing strategy for "Brown Dust 2" has been aggressive, with significant promotional efforts even when the game was outside the top sales rankings, indicating a strong commitment from the developer Neowiz [6][8] - The development team has actively sought feedback from players to improve game quality and user experience, which has led to a more engaged community [19][23] Game Design and Features - The game emphasizes character depth and storytelling, allowing players to collect all characters while focusing on acquiring costumes that enhance gameplay [6][20] - The design team prioritizes aesthetic appeal in character design, with a shift in player interest towards visual attractiveness over numerical strength [24] Future Plans and Market Potential - The development team is exploring the possibility of launching the game in China, acknowledging the need for content modifications to meet local regulations [16] - There is a recognition of the potential in the Chinese market, with a significant portion of revenue coming from Chinese players, estimated at 10%-15% of overall income [22] Community and Cultural Insights - The team has noted differences in player preferences between regions, with Chinese players showing a strong interest in community interaction and feedback [29] - The success of "Brown Dust 2" is attributed to a collaborative relationship with its user base, emphasizing the importance of player support in the game's development [35][36]

Group 1 - Tencent's new MMO game "Star Resonance" officially launched on July 17, based on the IP "Blue Protocol" from Bandai Namco, which ceased operations earlier this year. This launch may inject new vitality into the domestic ACG (Anime, Comic, and Game) market and strengthen Tencent's competitive advantage in this segment [1] Group 2 - Nintendo's new game "Donkey Kong: Bananapocalypse" was released on July 17, receiving an average score of 91 from 87 media outlets on Metacritic, with IGN giving it a perfect score. As a Switch 2 exclusive, this high rating may enhance Nintendo's competitiveness in the console gaming market and boost confidence in the monetization potential of its IPs [2] Group 3 - Chuangmeng Tiandi's tactical shooting game "Kara Bichu" mobile version began a limited paid testing phase on July 17, lasting until July 26, exclusively for Android. The original PC version performed well in Japan, indicating potential for monetization in the mobile market. Positive test results could enhance market perception of the company's game development capabilities, particularly in the niche of ACG and tactical shooting [3]