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 article discusses the rapid growth and business model of a company named "卡游" (KAYOU), which specializes in collectible card games, highlighting its impressive financial performance and the cultural phenomenon surrounding card collecting among children and adults alike [2][31]. Group 1: Company Overview - 卡游 is preparing for an IPO, with projected revenues of 100.57 billion RMB and a net profit of 44.66 billion RMB for 2024, indicating significant profitability compared to competitors like Miniso and Pop Mart [6][31]. - The company's revenue has grown nearly fourfold from 22.98 billion RMB in 2021 to 100.57 billion RMB in 2024, while net profit has increased almost sixfold from 7.95 billion RMB to 44.66 billion RMB during the same period [31][32]. - The card business constitutes over 90% of 卡游's total revenue, with a gross margin of 67.3% for the overall business and 71.3% specifically for card sales, which is significantly higher than many cultural and creative enterprises [32][33]. Group 2: Market Dynamics - The collectible card market is driven by popular IPs, with 卡游 heavily relying on franchises like "奥特曼" (Ultraman) and "小马宝莉" (My Little Pony) for revenue generation [34][36]. - The company has expanded its IP portfolio to 70, including collaborations with various franchises to appeal to a broader audience [34][36]. - The card collecting phenomenon has evolved into a social currency among children, where owning rare cards can elevate social status within peer groups [22][24]. Group 3: Consumer Behavior - The excitement of "blind box" purchases, where consumers buy packs without knowing the contents, creates a gambling-like thrill that drives repeated purchases [10][41]. - Parents have expressed concerns about their children spending excessive amounts on cards, with some children reportedly spending thousands of RMB [25][50]. - The card collecting experience is not just about ownership but also about the thrill of opening packs, which keeps consumers engaged [25][31]. Group 4: Challenges and Risks - 卡游 faces risks associated with its heavy reliance on popular IPs, with many licensing agreements set to expire in the next three years, potentially impacting revenue if not renewed [42][44]. - The company also grapples with issues related to counterfeit cards and the challenges of regulating sales to minors, as many children can easily purchase cards without age verification [49][50]. - The competitive landscape is evolving, with potential growth in the arena of competitive card games, but cultural acceptance among parents remains a barrier [52][54].

Core Viewpoint - The article discusses the rapid growth and business model of a company named "卡游" (KAYOU), which specializes in collectible card games, highlighting its impressive financial performance and the cultural phenomenon surrounding card collecting among children and adults alike [9][31][34]. Group 1: Company Overview - KAYOU is preparing for an IPO, with projected revenues of 10.057 billion RMB and a net profit of 4.466 billion RMB for 2024, indicating significant growth from 2.298 billion RMB in 2021 [9][32]. - The company's revenue from card sales constitutes over 90% of its total income, with a gross margin of 67.3% overall and 71.3% specifically for card sales [32][34]. - KAYOU's founder, Li Qibin, holds approximately 82% of the company's shares, with a potential wealth exceeding 800 billion RMB if the company achieves a market valuation of 100 billion RMB [11]. Group 2: Market Dynamics - The collectible card market is driven by the "抽卡" (drawing cards) mechanism, where the excitement of obtaining rare cards fuels consumer spending, similar to gambling [11][41]. - The company has successfully leveraged popular IPs, such as "奥特曼" (Ultraman) and "小马宝莉" (My Little Pony), to drive sales, with Ultraman cards accounting for nearly 60% of total card products [34][35]. - KAYOU has expanded its IP portfolio to include 70 different IPs by 2024, aiming to diversify its offerings and reduce reliance on any single IP [34]. Group 3: Consumer Behavior - Collectible cards serve as social currency among children, influencing their social dynamics and emotional satisfaction [24][32]. - The thrill of opening card packs and the uncertainty of obtaining rare cards create a psychological loop that encourages repeated purchases [26][28]. - Parents have expressed concerns over children's spending on cards, with some resorting to purchasing rare cards directly from secondary markets to satisfy their children's desires [26][39]. Group 4: Challenges and Risks - KAYOU faces challenges related to its heavy reliance on popular IPs, with many licensing agreements set to expire in the next three years, posing a risk to revenue stability [44]. - The company's extensive distribution network, while beneficial for rapid expansion, also presents regulatory challenges, particularly concerning counterfeit cards and the sale of products to minors [50][52]. - The potential for market saturation and the need for sustainable growth strategies are critical considerations for KAYOU as it navigates the evolving landscape of the collectible card industry [55].