Core Viewpoint - The article discusses the unveiling of miHoYo's new flagship game "Varsapura," highlighting its unique realistic rendering style and narrative approach, which diverges from the company's previous fantasy-themed games [5][7][11]. Group 1: Game Development Insights - "Varsapura" features a high-density open world and realistic character expressions, marking a significant technical and artistic challenge for the development team [6][9]. - The game incorporates psychological themes and aims to shift narrative styles from anime to a more Western TV series-like storytelling [7][29]. - The gameplay introduces new mechanics such as drivable vehicles and stealth elements, showcasing a departure from traditional action game formats [9][38]. Group 2: Producer's Journey - Cai Haoyu, the producer, has faced challenges since the success of "Genshin Impact," including a failed project codenamed PJSH, which led to a period of reflection and a pivot towards AI research [11][26][27]. - The development of PJSH encountered significant design challenges, particularly in creating a coherent gameplay experience within a realistic urban setting [22][24]. - After the failure of PJSH, Cai Haoyu redefined his vision for "Varsapura," focusing on a narrative-driven experience that balances realism with character-driven storytelling [29][32]. Group 3: Future Aspirations - The article emphasizes Cai Haoyu's commitment to creating innovative gaming experiences, with "Varsapura" aiming to blend high freedom gameplay with deep narrative elements [40][42]. - The game seeks to establish a complex relationship network among NPCs and player characters, influenced by AI technology, which Cai Haoyu has been researching [40][41]. - The overarching goal remains to create a virtual world that resonates with players, reflecting Cai Haoyu's long-term vision of transforming the gaming landscape [47][51].

今天，由蔡浩宇担任制作人，米哈游和HoYoverse联合研发的旗舰新作《Varsapura》正式首曝。 超过30分钟的实机演示，让许多人意识到它不同于米哈游，乃至整个行业里的任何一款产品。 它的角色、场景，皆采用了像鹿鸣一样的高精度写实渲染风格，尝试了更加风格化的审美路线。 虽然整个城市开放世界仅展示了数十秒，但足以让人瞥见夸张的布景密度。不难想象，这对技术、美术提出了多少挑战。 它不再是米哈游过去擅长的幻想风格，在写实背景下，他们这次选择了以心理学作为题材，尝试将动漫番剧式的叙事，转向类似美剧的风格。同时，人物 表情的细节，镜头的调度，剧情演出也都迈上了新的台阶。 他们还在对话选项中，加入了判定要素，这意味着剧情的分支与自由度会完全不同于传统二游。 同时，实机演示也展示了更多米哈游首次尝试的新玩法。比如可以漂移喷气的汽车载具，又比如潜行暗杀等等。 看完《Varsapura》的实机演示后，不少人感叹：那个令人惊艳的技术宅又回来了。 神秘，是外界对蔡浩宇的普遍认知。过去，米哈游每一款旗舰产品，总能带来代际跃迁，掀起新一轮行业热潮。同时大家津津乐道的，常常还有产品背后 的制作人蔡浩宇。 但令大众费解的是，《原神》 ...

Summary of the Conference Call on the Gaming Sector Industry Overview - The gaming sector in A-shares has shown strong performance in August 2025, continuing a positive trend since the beginning of the month, significantly outperforming other sectors in September [2][3][5]. Key Companies and Products - **ST Huatuo**: - "Wild Survival" achieved over $200 million in global revenue in August, a 17% month-over-month increase, with overseas iOS and Google Play contributing over $150 million, up 21% [1][2]. - "King Shot" generated $77.6 million in August, a 26% increase [2]. - "Tasty Travels" maintained a steep growth trajectory, reaching nearly $10 million in August, with a 24% month-over-month increase [2]. - **Giant Network**: - "Supernatural" has shown outstanding performance since the first half of 2025, with domestic iOS revenue in August increasing by 73% [4]. - **G-bits**: - "Sword of the Hero" performed well in overseas markets, with a 62% month-over-month increase in Hong Kong, Macau, and Taiwan, and a 116% year-over-year increase in Japan [4]. - **Xindong Company**: - The performance was driven by older games, with "Xindong Town" reaching a new high in July due to anniversary celebrations and IP collaborations [1][4]. - **Perfect World**: - "P5X Persona" exceeded expectations in Japan, contributing significantly to revenue growth, with overseas revenue in July between 140 million to 150 million RMB, and around 80 million RMB in August [1][8]. Financial Performance - In Q2 2025, 25 major A-share gaming companies reported total revenue of 27.9 billion RMB, a 23% year-over-year increase and a 4% quarter-over-quarter increase, significantly outperforming the overall domestic gaming industry growth of 10% year-over-year and -4% quarter-over-quarter [11]. - Net profit attributable to shareholders totaled 4.6 billion RMB, a 100% year-over-year increase and a 25% quarter-over-quarter increase [11]. Profitability Metrics - The gaming sector's gross margin was 68% in Q2 2025, up 3 percentage points year-over-year and 2 percentage points quarter-over-quarter, attributed to high-quality products reducing reliance on traditional channels [3][12]. - Sales expense ratio remained stable at 33%, indicating that revenue growth was not solely dependent on user acquisition spending [3][13]. Future Outlook - The gaming sector is expected to continue its growth trajectory in the second half of 2025 and into 2026, driven by several factors: - Continued strong performance of existing popular games and new product launches [5][6]. - Expansion into international markets and new game releases, such as ST Huatuo's upcoming titles [5][6]. - Increasing demand for digital entertainment and technological advancements enhancing user experience [6]. - The valuation of the sector remains reasonable, with a central estimate below 20 times earnings, suggesting potential for continued outperformance [15]. Noteworthy Trends - The application of AI in game development and marketing is expected to enhance efficiency and quality, with significant portions of advertising content being produced by AI [15]. - Companies with strong product lines and forward-looking AI strategies, such as ST Huatuo, Giant Network, G-bits, and Perfect World, are recommended for attention [17]. Additional Insights - Older games have shown resilience, with several maintaining stable revenue streams, indicating a potential for sustained performance [7][10]. - The competitive landscape has improved, with companies leveraging community marketing and content-driven strategies to reduce traditional user acquisition costs [14]. This summary encapsulates the key points from the conference call regarding the gaming sector, highlighting the performance of specific companies, financial metrics, and future outlooks.

Industry Overview - The ChinaJoy event will take place in early August in Shanghai, featuring the inaugural China International Game Developers Conference, which will release the "One Country, One Policy" guideline for game companies' overseas expansion [1] - Shanghai's online gaming industry achieved a total sales revenue of 83.283 billion yuan in the first half of the year, marking a year-on-year growth of 10.80%, with domestic sales at 68.737 billion yuan and overseas sales at 14.546 billion yuan, growing by 10.73% and 11.12% respectively [1] - The esports industry in Shanghai generated revenue of 3.254 billion yuan, a year-on-year increase of 6.91%, with esports live streaming and event revenues leading the nation [1] Policy Support - Multiple regions have introduced new policies to support local gaming companies in their global expansion, including Guangdong's measures to guide and support game companies in leading smaller enterprises to go global [1] - Beijing is soliciting opinions on measures to support the establishment of an "Overseas Service Zone" to facilitate game exports and provide consulting services [2] - Zhejiang province has released a comprehensive policy document with 20 specific measures to support game exports, focusing on industry enhancement, platform support, ecological optimization, and resource assurance [2] Company Performance - Companies like Shunwang Technology and Kaiying Network are focusing on innovative brand promotion and overseas business expansion, respectively, with Kaiying Network reporting sustained growth in overseas revenue through targeted user engagement strategies [3] - Twelve gaming concept stocks have released half-year performance forecasts, with seven expecting positive results; ST Huatuo is projected to have the highest net profit between 2.4 billion to 3 billion yuan, reflecting a significant year-on-year increase [3] - Companies such as Youzu Network and Zhejiang Cultural are also reporting substantial profit growth, with Youzu Network's net profit expected to rise by 768.75% to 1203.13% [4]

Summary of Conference Call Records Industry Overview: Gaming Industry Key Insights and Arguments - The gaming industry is experiencing a significant transformation in 2025, driven by innovation and fundamental product development rather than just AI and regulatory approvals as seen in 2024 [1][5][7] - Mid-tier gaming companies are gaining a competitive edge, with notable performances from titles like Giant Network's "Supernatural Action Group" and G-bits' M72 and M88, which have exceeded market expectations [2][3][4][12] - The overall market valuation for the gaming sector is projected to reach 25 times earnings, with leading companies like Giant Network potentially achieving valuations of 30 times [8][22] Performance Metrics - Giant Network's "Supernatural Action Group" reported weekly revenues nearing 40 million, with a 192% week-over-week growth, and an estimated annual revenue of 1 billion, potentially increasing to 2-3 billion next year [10][24] - G-bits' M72 generated 360 million in its first quarter, while M88 is expected to achieve 200-300 million in its first month, showcasing strong retention and ROI [3][12][25] Competitive Landscape - The competitive landscape is shifting, with companies focusing on innovative gameplay mechanics and marketing strategies, such as content-driven marketing and KOL recommendations, to reduce sales costs and improve ROI [13][4] - The gaming sector is witnessing a diversification in gameplay styles, moving away from traditional genres to more innovative formats, such as simulation and AI-integrated games [7][9] Company-Specific Highlights Giant Network - "Supernatural Action Group" is a standout title, with a DAU of 1.13 million and an average playtime of 124 minutes, indicating high player engagement [10][11] - The company is expected to see significant profit contributions from this title in Q3, alongside potential new releases like a card game in development [23] G-bits - G-bits is launching M88 in Japan and other regions, with strong initial performance indicators suggesting a potential doubling of revenue from its initial projections [26] - The company is also seeing growth from its existing IPs, with a projected 30% year-over-year increase in Q2 performance [25] Other Companies - Perfect World is set to release "One Ring," which incorporates innovative gameplay mechanics and aims for a global launch, potentially boosting future revenues [30] - Kain Network is focusing on AI-driven game development, with several projects expected to launch by the end of the year [27] Market Trends and Future Outlook - The gaming industry in China is maintaining a growth rate of 20% in early 2025, with a positive outlook for the remainder of the year as new titles are released and market conditions improve [14][15] - The policy environment is becoming more favorable, with increased approvals for game licenses and supportive measures from local governments [17][18] Investment Opportunities - The current market conditions present a favorable investment opportunity in mid-tier gaming companies, which are demonstrating strong growth potential through innovative products and effective marketing strategies [4][32] - The overall sentiment is optimistic, with recommendations for investment in companies like Giant Network, G-bits, and Kain Network based on their performance and market positioning [32]

Summary of Key Points from the Conference Call Industry Overview - The gaming industry is experiencing performance divergence in 2024, with Kaiying Network achieving impressive revenue of 1.35 billion and turning a profit, while 37 Interactive Entertainment and Taiyue Information fell short of expectations due to marketing expenses and product competition, indicating intensified industry competition [1][2][3] Core Companies and Their Performance - Kaiying Network and Huatuo are expected to have a higher success rate in the future. Jibite is anticipated to grow due to its reserve products like "Warship Legend" and "Nine Woods in the Wild," maintaining a relatively stable market position [3][1] - In Q1 2025, Kaiying's revenue was approximately 510 to 520 million, Perfect World reported 300 million, and Jibite achieved 283 million. ST Huadong performed exceptionally well at 1.35 billion, while Youzu managed to turn a profit [2] Emerging Technologies and Trends - The integration of AI and gaming shows promising prospects. Successful cases include 1V1 games that utilize AI models and VR/XR technologies, enhancing user experience through 3D AR scene construction. For instance, "Love and Deep Space" helped increase Zhe Paper's revenue from 1.4 billion to 7 billion [4][5] - The combination of AI, AR, and virtual human technologies is expected to further enhance immersion and user experience in gaming [4][5] Notable Game Genres - MMORPG, SLG, and casual gaming are highlighted as important areas to watch. MMORPG and SLG have long lifecycles and can integrate various gameplay styles, while casual games are performing well in the Western markets, with increased fragmented time in China providing opportunities [6][7] - The lifecycle of successful JSR games can reach 8 to 10 years, attracting high ARPU users and forming stable player communities [6] Upcoming Game Releases - A significant number of new games are set to launch in 2025, with Kaiying Network having the most reserves, including "Douluo Dalu: The Legend of the Exorcist" and "Tomb Raider: The Journey." Other companies like 37 Interactive Entertainment, Tencent, and NetEase also have substantial reserves [8][9] - Key products from Kaiying Network include "Douluo Dalu: The Legend of the Exorcist," which features deep design for combo attacks, and "Tomb Raider: The Journey," which combines Dungeons & Dragons and ARPG elements [10] Company-Specific Highlights - Jibite is launching "Sword Legend," a JRPG that incorporates a pet-catching system, and "Nine Woods in the Wild," which enhances real-time strategy gameplay [13] - Giant Network's new titles include "Supernatural Action Group," a Chinese horror-themed game, and "5000 Years," a historical strategy game [12] - Mingchen Health's core product is "Realm of the Blade," an ARPG featuring a death god IP, designed for cooperative play [11] Market Dynamics - The casual gaming sector is thriving in Western markets, with titles like "Candy Crush Saga" maintaining a long presence in the top sales charts. The increasing fragmented time in China due to longer working hours also benefits casual games [7] - The market may polarize into heavy games like MMORPG and SLG, and lighter casual games [7] Conclusion - The gaming industry is poised for significant developments in 2025, with numerous new titles and innovative technologies shaping the landscape. Companies like Kaiying Network, Jibite, and Giant Network are at the forefront of these changes, leveraging their unique products and market strategies to capture growth opportunities.