Core Insights - Tencent's game "Delta Operation" has become a significant revenue contributor, achieving an average daily active user count of 20 million by July 2025, marking a 66% increase in just three months [1][3] - The game has successfully launched on PS5 and Xbox platforms, indicating Tencent's strategic move into the console gaming market [1][4] Industry Overview - The FPS genre holds a central position in the global gaming market, with Western studios dominating for decades, creating a mature ecosystem [4][5] - Tencent's entry into the console gaming market is seen as a new growth opportunity, despite the challenges of building a competitive ecosystem from scratch [5][7] Product Development and Strategy - "Delta Operation" is positioned as a new growth engine for Tencent, showcasing strong performance in app store rankings and sales [13][20] - The game emphasizes high product quality and service-oriented content, leveraging advanced technology for cross-platform development [8][9] - The development team has focused on creating unique gameplay mechanics and a robust economic system, aiming to differentiate from traditional FPS games [11][12] Market Potential - The FPS genre in China is relatively scarce, but demographic changes and increasing sales of gaming peripherals present long-term growth opportunities [15][16] - Tencent's strategy includes not only self-developed titles like "Delta Operation" but also a synergistic approach with its publishing and investment arms, enhancing its market presence [20][21] Competitive Landscape - The success of "Delta Operation" indicates that Chinese self-developed games can compete with top international titles in the FPS category, marking a significant shift in the industry [21]

Core Insights - Tencent's gaming business has shown strong performance with double-digit growth in revenue and non-IFRS operating profit due to continuous investment in AI technology [2][3] - Domestic gaming revenue increased by 17% year-on-year, driven by the success of games like "Delta Action" and evergreen titles such as "Honor of Kings" and "Peacekeeper Elite" [3] - International gaming revenue grew by 35% year-on-year (33% at constant exchange rates), primarily fueled by games from Supercell, "PUBG Mobile," and "Dune: Awakening" [7] Group 1: Game Performance - "Honor of Kings" and "Peacekeeper Elite" are evolving into platform-type products, with increased user engagement and revenue [2] - New game "Delta Action" has performed strongly since its launch, contributing to the overall growth of the gaming segment [3][12] - The total revenue from mini-games increased by 20% year-on-year, aided by upgrades to technical infrastructure and game engine compatibility [7] Group 2: AI Integration - AI is a key driver for growth in game content, player engagement, and monetization, with applications in content production and marketing strategies [8] - The use of AI tools has enhanced the speed and scale of game content production, allowing for more human-like virtual teammates and realistic non-player characters [8] Group 3: Market Trends - The Chinese audience for AAA games is growing, although the market for paid games remains niche compared to free-to-play models [13] - AAA games and ongoing service games are seen as complementary rather than competitive, with players likely to engage with both types [14] - The FPS genre is experiencing significant growth in China, with new titles like "Rainbow Six" and mobile versions of existing games planned for release [16] Group 4: Future Strategies - Tencent plans to continue expanding its portfolio with a focus on content-driven games, which have shown strong performance in both domestic and international markets [16] - The company aims to leverage its experience in FPS games while also exploring new genres to diversify its offerings [17][18]

Core Insights - Tencent Holdings reported that its game "Delta Action" achieved an average Daily Active Users (DAU) of over 20 million in July, ranking among the top five in the industry for DAU and among the top three in revenue [1] - The DAU growth of approximately 66% from the previous figure of 12 million in April was achieved in just three months [1] - "Delta Action" is Tencent's first globally released multi-platform shooting game, which has gained significant traction in the global market since its public beta in September 2024, thanks to its differentiated gaming experience and effective communication with younger users [1] Performance Metrics - As of July, "Delta Action" consistently ranked at the top of various platforms, including first place on Douyin, top three in domestic internet café popularity, and top three in both free and revenue charts on the App Store [1] - The game has also performed well internationally, ranking in the top four on the global Steam platform for PC, and reaching the number one spot in the iOS free game charts in 169 countries and regions, as well as the Google Play free game charts in 125 countries and regions [1]