Summary of Key Points from Conference Call Industry Overview - The conference call discusses the gaming industry, particularly focusing on the implications of the EU Digital Fairness Act and its potential impact on digital product companies operating in the EU [1][2][3][4][6]. Core Insights and Arguments - **EU Digital Fairness Act**: If passed, it will significantly affect digital product companies in the EU, regulating free games, marketing methods, and commercialization designs. Minimum requirements may align with regulations in Japan and South Korea, such as disclosing extraction probability formulas and prohibiting deep extraction [1][2][3]. - **Legislative Trends**: The global gaming industry is currently undergoing a legislative cycle, with various countries revising laws focused on consumer protection, minor protection, and privacy protection. This aims to standardize market behavior and enhance transparency [1][4]. - **Impact on Business Models**: Game developers are exploring diverse business models to reduce reliance on traditional monetization methods. For instance, "Genshin Impact" has implemented cash labeling for items, while companies like Tencent and NetEase focus on cosmetic and fair competition payments [1][8]. - **Growth Logic in China**: The growth logic for the Chinese gaming industry hinges on global market expansion and increasing user payment rates. The global market is seen as a significant source of incremental growth, necessitating clear product and platform strategies for success abroad [11][12]. Additional Important Content - **Regulatory Comparisons**: Current regulations in Japan and South Korea are similar, focusing on transparency and consumer protection. The U.S. FTC is also increasing its regulatory scrutiny, as seen in its actions against companies like miHoYo [3][4]. - **Challenges from New Regulations**: New regulations may lead to increased development costs and complexity due to the need for different game versions across regions. This could complicate global distribution and affect user retention and payment rates [9][10]. - **Future Development Directions**: The gaming industry is expected to gradually implement new regulations without being overly aggressive. Companies are advised to diversify their business models and engage in legislative feedback to protect their interests [10]. - **Performance of A-Share Listed Companies**: In 2025, A-share listed gaming companies are expected to perform well due to clearer global market strategies following a period of adjustment [18][25]. - **Emerging Market Opportunities**: The rise of new gameplay types, such as casual games, is creating opportunities for head companies to innovate and capture market share [24][27]. Conclusion - The gaming industry is at a pivotal moment with potential regulatory changes that could reshape business models and market dynamics. Companies must adapt to these changes while focusing on global expansion and innovative monetization strategies to sustain growth and competitiveness in the evolving landscape [1][2][10][11].