Group 1 - The game ETF (159869) has experienced a narrow fluctuation, currently up by approximately 0.5%, with notable stocks such as Youzu Interactive hitting the daily limit, and others like Iceberg Network and Light Media rising over 1% [1] - The game ETF has seen continuous net inflows for 11 consecutive trading days, accumulating a total of 2.195 billion yuan, indicating strong investor interest [1] - In July, the approval volume of game licenses remained high, with 127 games approved, despite a decrease of 20 from June, maintaining a robust issuance level [1] Group 2 - The gaming sector is undergoing multiple catalysts including AI, content, and commercialization model transformations, with the game ETF tracking the performance of the A-share listed companies in the animation and gaming industry [2] - The annual gaming event ChinaJoy is approaching, presenting potential investment opportunities in the game ETF [2]

Core Insights - The gaming industry in China is experiencing a significant increase in game license approvals, with 134 licenses issued in July, including 127 domestic and 7 imported games. The total number of licenses issued from January to July reached 946, marking a 19% year-on-year growth [1] Industry Developments - Multiple supportive policies from central and local governments are being implemented to foster the long-term development of the gaming industry [1] - Major traditional gaming companies like Tencent, NetEase, and miHoYo have not released any blockbuster titles this year, creating a user gap that provides an opportunity for mid-sized companies to launch new products [1] - Non-headline gaming companies are beginning to benefit from new product cycles, showing a clear trend of performance recovery [1] Market Dynamics - Recent adjustments in the gaming sector are primarily driven by structural market changes rather than fundamental factors. If capital shifts from high to low valuations, the adjusted gaming sector may demonstrate higher cost-effectiveness in terms of valuation and growth potential [1] - The gaming ETF (516010) tracks the anime and gaming index, selecting listed companies in the A-share market related to the anime, gaming, and associated industries, serving as an important indicator of the development of China's anime and gaming industry [1]

Industry Dynamics - In July, a total of 134 game licenses were issued, with 127 being domestic games, indicating a stable approval rate for the year with 893 domestic online games approved so far [2] - The proportion of casual puzzle games among the approved titles saw a significant decline, dropping to 27.6% [2] - The Chinese Football Association plans to establish a national esports football team to participate in various international esports football competitions [3] Company Developments - The domestic AAA game "Mingmo: Yuanshu Zhi Yu" was globally released, but faced controversy due to issues like identical content in different editions and price discrepancies, leading to a drop in its Steam rating from below 20% to 34% after the developers issued an apology and adjusted prices [4] - The game is expected to contribute to the growth of the single-player market in China, with industry experts suggesting that the market for high-quality domestic single-player games is on the rise [4][6] - The gaming company Paper Games experienced executive changes, with Yao Runhao resigning as the legal representative of multiple companies [7] - Zhejiang Shuju Culture held a shareholder meeting to increase its board members from 5 to 7, adding an independent director and a staff representative [8] - NetEase won a bid for a big data platform project with Huatai Securities, amounting to approximately 1.43 million yuan [9] International Developments - The international version of "No Man's Sky" was launched, with the domestic version expected to be released in the fall [11] - Finnish mobile gaming giant Supercell announced an investment in AI gaming company Glass Bead Games, founded by former Alibaba executives [12][13] Esports Events - The third anniversary celebration of "League of Legends Mobile" was successfully held, with teams JT, EW, and TT.Chenxi winning their respective championships [14] - The 2025 League of Legends World Championship will return to China, scheduled from October 14 to November 9 [15]

Core Insights - The global competition in artificial intelligence has entered a new phase focused on "data superiority" [1] - Game scenarios contain vast amounts of real-time, highly interactive multimodal data, which are crucial resources for driving AI technology development [1] Company Developments - Youzu Interactive has accumulated extensive experience in game development and publishing over 16 years, leveraging data from one billion global users to enhance AI-enabled game development and publishing [1] - The company has developed an integrated AI tool platform that supports the entire game development and publishing process, featuring functions such as art asset generation, code generation, localization translation, intelligent testing, and content risk control [1] Product Innovations - Youzu Interactive is developing an AI-native game based on the "Three-Body" IP titled "My Three-Body: 2277," which allows players to create game content using built-in AI tools for scene editing, storyline design, and interactive object editing [1] Strategic Collaborations - Youzu Interactive has signed a strategic cooperation agreement with domestic AI chip developer Xiwang to integrate high-performance customized GPU solutions with advanced distributed architecture for future game intelligent development [2] Broader Industry Implications - Game multimodal real-time data is accelerating cross-domain collaborative innovation and has applications beyond the gaming industry, such as providing high-fidelity training materials for embodied intelligence and offering digital overseas expansion experiences for other industries [2] - The gaming industry, represented by Youzu Interactive, has accumulated reusable experience data that can invigorate the innovative inheritance and development of traditional Chinese culture [2]

Core Viewpoint - Game technology is driving innovation in the digital economy, evolving from traditional entertainment to a key engine for new productive forces, with significant contributions to technological advancements and cross-industry applications [1][2]. Group 1: Game Industry Growth - The Chinese game industry has transformed from imitation to innovation, achieving a revenue scale of 455.06 billion yuan in 2024, with a compound annual growth rate (CAGR) of 26.8% over nearly two decades [3]. - The user base is projected to exceed 750 million by 2024, with a CAGR of 18.6%, providing a solid foundation for ongoing industry growth [3]. - Self-developed games have become a pillar of the industry, with their market share rising from around 60% to over 80%, indicating significant progress in domestic innovation capabilities [5]. Group 2: International Expansion - The overseas revenue of the Chinese game industry has surpassed 100 billion yuan, with core markets in the US, Japan, and South Korea accounting for 57.3% of this revenue, demonstrating the competitive strength of self-developed games in mature markets [8]. Group 3: Technological Advancements - Game technology serves as a testing ground for technological innovations, driving advancements in graphics processing, artificial intelligence, and cloud computing, which in turn enhance infrastructure like NVIDIA GPUs and 5G networks [1][2]. - The evolution of game technology has led to a symbiotic relationship with technological innovation, where breakthroughs in one area stimulate advancements in the other [13][20]. Group 4: Academic Research - The volume of academic research in game technology has seen explosive growth over the past two decades, indicating a heightened focus on the field and its importance in technological innovation and societal value [10]. Group 5: Cross-Industry Applications - Game technology is increasingly being applied in various sectors, including cultural heritage preservation, healthcare, smart transportation, and aerospace, showcasing its versatility and impact beyond entertainment [51][56][59][64]. - The integration of game technology into these fields enhances user experience, operational efficiency, and training effectiveness, demonstrating its potential to drive innovation across industries [56][64]. Group 6: Future Trends - The fusion of game technology with general technologies is expected to deepen, blurring application boundaries and becoming a core driver of technological innovation and economic integration [67]. - Game technology is poised to accelerate the development of the metaverse, providing essential support for the seamless integration of digital and physical worlds [72].

Group 1 - The core viewpoint of the news is that Youzu Interactive has been appointed as the vice president unit of the Shanghai Artificial Intelligence Industry Association, highlighting the growing importance of the gaming industry in the AI ecosystem and its role in driving technological implementation and innovation [1][3]. - The Shanghai Artificial Intelligence Industry Association encompasses a full chain of enterprises from basic research to industrial application, and Youzu's unique advantages in the "AI + gaming" sector provide a solid foundation for the large-scale application of AI technology [1][2]. - Youzu Interactive has established an integrated AI platform that enhances automation, standardization, and scalability in various production areas, including art asset production, code generation, TTS voice generation, and localization translation, thereby improving the industrialization level of game development [2]. Group 2 - The company has developed a comprehensive AI tool matrix that includes intelligent BI, translation platforms, content risk control, intelligent operation and maintenance, and automated testing, enhancing operational efficiency across the entire game publishing process [2]. - Youzu Interactive's strategic collaboration with domestic AI chip company Sunrise focuses on coupling AI computing infrastructure with core game development scenarios, aiming to optimize AIGC content production and real-time inference engines [2]. - With over 1 billion global users' data accumulated over more than a decade, Youzu's digital assets are expected to become a significant growth point for its AI strategy, contributing to the intelligent upgrade of the global gaming industry [3].

Core Viewpoint - The article discusses the resurgence of companies heavily invested in AI technologies, particularly focusing on Roblox's recovery and the broader implications for the tech industry in the context of AI commercialization and market valuation [1][4][26]. Group 1: Roblox's Performance and Recovery - Roblox's stock price has significantly rebounded, with a 2023 Q1 revenue of $1.035 billion, a 29% year-over-year increase, and a booking amount reaching $1.207 billion, up 31% year-over-year [7][17]. - The company experienced a dramatic decline in stock price post-2021, dropping over 80% from its peak of $141.6 in November 2021 to around $21 by December 2022, primarily due to slowing user growth and financial losses [11][16]. - Recent improvements in user demographics, with the percentage of users aged 13 and above rising from 47.7% in 2021 to 62.4% in Q1 2023, have positively impacted the average booking per daily active user (ABPDAU) [17][20]. Group 2: AI's Role in Business Growth - The integration of AI technologies is seen as a key driver for enhancing user-generated content (UGC) and improving operational efficiency within the gaming ecosystem [24][29]. - Roblox's unique business model, which allows users to create and monetize their games, is further strengthened by AI tools that streamline the game development process [22][23]. - The article highlights the potential for AI to transform various sectors, including gaming, by improving user engagement and monetization strategies, thus driving future revenue growth [26][37]. Group 3: Broader Market Implications - The article notes that domestic AI-related core assets are undergoing a revaluation as companies like Alibaba leverage open-source technologies to enhance their competitive edge [27][30]. - The overall financial health of internet companies is improving, with revenue growth and profit margins showing positive trends, which could lead to a recovery in tech stock valuations [33][36]. - The article emphasizes that the future growth of tech companies will increasingly rely on AI capabilities, suggesting a shift from mere user acquisition to value creation through innovative applications of AI [38].

Core Insights - The success of "Black Myth: Wukong" with 30 million copies sold has set a milestone for Chinese gaming and opened the door for domestic AAA titles [1][2] - The highly anticipated game "Mingmo: Yuanshu Zhi Yu" launched on July 24 but faced significant backlash, quickly receiving a flood of negative reviews on Steam [1][3] - The failure of "Mingmo: Yuanshu Zhi Yu" serves as a warning to other developers in the industry about the challenges of meeting high expectations [6][7] Game Performance - "Mingmo: Yuanshu Zhi Yu" was expected to replicate the success of "Black Myth: Wukong" but fell short, with Steam reviews dropping to below 30% positive shortly after launch [3][4] - The game had over 1 million wishlists prior to release and topped the Steam global sales chart during pre-sale, indicating high initial interest [2][4] - Players reported issues such as poor optimization, incorrect pre-order rewards, and pricing discrepancies, leading to widespread dissatisfaction [3][4] Industry Trends - The success of "Black Myth: Wukong" has inspired major gaming companies to invest in AAA game development, with notable projects like NetEase's "Guitang" and Light Media's upcoming AAA title [6][7] - Industry analysts suggest that focusing on high-quality single-player games can lead to both critical acclaim and commercial success, particularly for major players like Tencent and NetEase [7][8] - The push for AAA games is seen as beneficial for both domestic and international players, providing culturally rich gaming experiences [7][8]

Core Insights - The strategic partnership between Youzu Interactive and Sunrise aims to build an AI computing foundation to promote the intelligent upgrade of the gaming industry [2] - The collaboration will focus on integrating AI computing infrastructure with core gaming development scenarios, utilizing customized GPU computing cards and distributed architecture [2] - This partnership is a significant step towards the innovative integration of "AI + gaming," driving technological advancement and paradigm shifts in the gaming industry [2] Company Overview - Youzu Interactive operates in multiple sectors including game development, publishing, artificial intelligence, and IP management, with users across over 200 countries and regions [3] - The company has established an "AI Innovation Institute" and collaborates with notable firms like Volcano Engine and Inspur to expand AI technology applications in interactive entertainment [3] Sunrise Overview - Sunrise, previously the chip division of SenseTime, became an independent full-stack AI computing chip company by the end of 2024, focusing on high-performance GPU and multi-modal scene inference chip development [3] - The core technical team consists of approximately 150 members, primarily from AMD, Baidu, Alibaba, and SenseTime, achieving significant results in chip development with successful tape-outs of two generations of chips [3] - Sunrise's product line includes the S1, S2, and S3 GPUs, each targeting different application scenarios [3]

Core Insights - The gaming industry is witnessing a significant shift towards WeChat mini-programs, with major titles like "Genshin Impact" and "Honkai: Star Rail" launching mini-program versions, indicating a migration from standalone apps to this new platform [3][17] - The user experience is evolving from individual enjoyment to social interaction, with games designed to facilitate sharing and engagement among friends, as evidenced by high share rates in games like "Sheep a Sheep" [9][11] - The profitability of the gaming industry is declining, with average profit margins dropping below 5%, highlighting the challenges posed by rising user acquisition costs and a saturated market [12][15] Industry Trends - WeChat mini-programs have reached 550 million monthly active users, with the gaming market size projected to be 39.8 billion yuan in 2024, showcasing the platform's rapid growth [2] - The transition to mini-programs is driven by the need for quick and easy access to games, reducing barriers to entry and enhancing user retention rates [6][8] - The cost of acquiring users through traditional methods is increasing, with average user acquisition costs reaching 120 yuan for iOS and 80 yuan for Android, leading to a cycle of spending without sustainable returns [15][16] User Behavior - Players are increasingly drawn to games that offer low entry barriers and social engagement, with the design of games now focusing on attracting a broader audience rather than just hardcore gamers [11][12] - The shift in user expectations is evident, as players prefer instant access to games without the need for downloads, which has become a critical factor in user retention [6][17] - The gaming community is evolving, with social dynamics playing a crucial role in user engagement, as seen in the popularity of games that facilitate social interactions [9][11]