Core Viewpoint - The launch of Tencent's "Penguin Island" in Shenzhen represents a significant investment in the digital entertainment industry, with a total investment of 31.9 billion yuan and a construction area of 2 million square meters, aiming to establish a global digital entertainment hub [4][6]. Group 1: Investment and Development - "Penguin Island" is set to become a key player in Shenzhen's digital economy, marking a strategic move in the internet technology innovation sector [4][6]. - The project is part of a broader initiative to create a digital entertainment industry cluster in the western part of Shenzhen, with the local government implementing a comprehensive support policy [3][4]. Group 2: Support Policies - The Bao'an District has introduced a "Digital Entertainment Industry Support Plan," which includes financial incentives such as up to 10 million yuan in funding and 12 months of rent exemption for qualifying enterprises [3][6]. - Specific support measures include rent subsidies for digital entertainment companies, with a 12-month rent exemption for those entering quality buildings by 2025, and up to 30% rent discounts for the following two years [6][7]. Group 3: Industry Ecosystem - The support plan aims to foster a robust industry ecosystem by facilitating cooperation between game developers and platforms, providing subsidies for game approvals, and encouraging the development of popular mini-games [7][9]. - The plan also includes financial rewards for successful game products and support for hosting national events, enhancing the overall industry environment [7][9]. Group 4: Strategic Partnerships - The establishment of a game industry service center in Bao'an by the Guangdong Provincial Game Industry Association signifies a commitment to enhancing the local gaming sector and providing professional services to enterprises [12][14]. - This partnership aims to integrate resources from both Guangzhou and Shenzhen, promoting the development of the gaming industry and enhancing its global competitiveness [12][14].

Core Viewpoint - Game technology is driving innovation in the digital economy, becoming a key engine for new productive forces and transcending traditional entertainment boundaries [1][2]. Group 1: Game Industry Growth - The Chinese game industry is experiencing exponential growth, with projected revenue reaching 455.06 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 26.8% over nearly two decades [3]. - The user base is also expanding significantly, expected to exceed 750 million users in 2024, with a CAGR of 18.6% over the same period, providing a solid foundation for ongoing development [3]. Group 2: Self-Developed Games - Self-developed games have become a cornerstone of the Chinese game industry, with their market share rising from approximately 60% to over 80% in recent years, indicating a significant improvement in domestic innovation capabilities [5]. Group 3: International Expansion - The revenue from overseas markets has surpassed 100 billion yuan, with the US, Japan, and South Korea accounting for 57.3% of this income, showcasing the competitive strength of Chinese self-developed games in mature markets [8]. Group 4: Game Technology and Innovation - Game technology serves as both a testing ground for technological innovation and a universal interface for cross-domain empowerment, driving advancements in foundational technologies like GPUs and AI [1][13]. - The relationship between game technology and innovation has evolved into a symbiotic one, where each drives the other, enhancing overall technological capabilities [13][20]. Group 5: Academic Research - The volume of academic research in game technology has seen explosive growth over the past two decades, indicating a heightened focus on this field within the academic community [10]. Group 6: Key Technologies - Game engines are crucial for game development, significantly improving efficiency and simplifying production processes, while also being applicable in various fields beyond gaming [22][24]. - Artificial intelligence is enhancing both user experience and development efficiency in the gaming industry, becoming a core competitive factor for game companies [25][28]. Group 7: Cross-Industry Applications - Game technology is making significant contributions to various sectors, including cultural heritage preservation, healthcare, smart transportation, and aerospace, demonstrating its versatility and impact [51][56][59][64]. Group 8: Future Trends - The integration of game technology with general technologies is expected to deepen, leading to a more blurred line between entertainment and other sectors, and driving innovation across multiple industries [67][70].

Core Viewpoint - The A-share gaming sector has experienced a significant rise, driven by multiple factors including policy support, better-than-expected performance, technological innovation, and improved market sentiment [5][6]. Group 1: Market Performance - A-share gaming stocks collectively surged, with Youzu Interactive hitting the daily limit, and other companies like Deyuan Network and Iceberg Network rising over 7% [1]. - The gaming ETFs also saw gains, with Guotai Fund's gaming ETF up by 2.96%, Huaxia Fund's gaming ETF up by 2.94%, and Huatai Baichuan's gaming ETF up by 2.93% [1][3]. Group 2: Policy Support - Continuous favorable policy signals have been released, including a significant acceleration in the issuance of game licenses, with 130 domestic and 14 imported game licenses announced on May 21, 2025, marking a substantial year-on-year increase [5]. - The upcoming measures from Guangzhou to support the gaming and esports industry will provide comprehensive policy services, including funding for game development, operations, and esports events [5]. Group 3: International Expansion - Recent policies have been introduced to support the international expansion of gaming businesses, with Guangdong province launching initiatives to encourage local game companies to enhance their global competitiveness [6]. - In Q1 2025, China's self-developed games generated overseas revenue of $4.805 billion, reflecting a year-on-year growth of 17.92% [6]. Group 4: Industry Performance - The overall recovery of the gaming industry is evident, with Q1 2025 revenues reaching 85.704 billion yuan, a year-on-year increase of 17.99% [6]. - Leading companies have reported strong earnings, with NetEase's gaming revenue at 24 billion yuan, up 12.1% year-on-year, and Century Huatong's revenue soaring by 91.12% [6]. Group 5: Technological Innovation - AI technology is enhancing the gaming industry by reducing costs and innovating gameplay, with tools like Tencent's mixed yuan game visual generation platform and Kunlun Wanwei's intelligent agents speeding up game development [6]. - Game development costs have been reduced by 30%-50% through AI applications, as seen in titles like "Xianjian World" and "Space Kill" [6]. Group 6: ETF Overview - There are currently four gaming industry ETFs tracking various indices, with Huaxia Fund's gaming ETF being the largest at 6.203 billion yuan as of May 22, 2025 [7][9]. - The Huatai Baichuan gaming ETF has the lowest fee rate, with a combined management and custody fee of 0.36% [7].

Core Insights - The article discusses the rise of Original Characters (OC) in the virtual world, highlighting the growing interest from capital markets and the potential for new social interaction platforms [2][3][4]. Group 1: Market Overview - The OC market has seen significant growth, with games like Gacha Life attracting over 200 million players, validating the Product-Market Fit (PMF) for OC [2][18]. - There is a clear demographic of young, highly engaged users who are eager to create and share their OCs, indicating a strong demand for new production tools and distribution platforms [3][10]. Group 2: Company Introduction - Kotoko AI, founded in 2023, aims to create a social interaction platform called Bside that combines User-Generated Content (UGC) with gamified experiences for OC [7][8]. - The founder, Qiao Haixin, has a background in UGC gaming platforms and aims to leverage AI to enhance user engagement and creativity [7][8]. Group 3: User Demographics and Behavior - The core OC user base is estimated to be around 10 million globally, with millions in both China and the U.S. actively sharing their OCs on platforms like TikTok and Instagram [8][10]. - Users exhibit diverse motivations for engaging with OCs, with females often viewing them as idealized versions of themselves, while males may adopt a more paternalistic approach [12][17]. Group 4: Product Features and Development - Bside is designed to be an "OC playground," providing a comprehensive platform for users to create, nurture, and socialize with their OCs [12][13]. - The platform aims to reduce the barriers to entry for OC creation, allowing users to engage in a cycle of creation, nurturing, and social interaction [14][19]. Group 5: Market Potential and Future Outlook - The OC phenomenon is not just an online trend but has real-world implications, with users engaging in OC-related activities offline, such as collecting dolls or custom figures [10][12]. - The potential for the OC market to grow into a multi-billion dollar industry is significant, with the possibility of reaching over 100 million daily active users (DAU) [10][12]. Group 6: AI Integration and User Experience - AI is seen as a tool to enhance the OC experience, allowing for more personalized interactions and reducing the creative burden on users [40][41]. - The focus is on creating a sense of autonomy and individuality for OCs, enabling them to engage in social interactions and share experiences, akin to having a "life" of their own [47][62]. Group 7: Competitive Landscape - The article compares Bside to existing platforms like Roblox and Gacha Life, emphasizing the need for a unique approach that combines social interaction with OC creation [72][76]. - The success of Bside will depend on its ability to foster a vibrant community and provide engaging experiences that resonate with users' desires for creativity and social connection [60][76].

Group 1 - The game industry is entering a new development phase characterized by "content refinement + AI industrialization + systematic globalization" by 2025, with stable short-term policies and long-term global opportunities [1] - The National Press and Publication Administration has released 130 domestic game licenses and 14 imported game licenses, indicating a continued friendly policy environment, with a significant year-on-year increase in licenses issued [1] - As of May 2025, 654 domestic licenses and 44 imported licenses have been issued, reflecting a substantial improvement in the supply side of the industry, which is expected to accelerate the introduction of quality content [1] Group 2 - The Chinese game market's actual sales revenue for Q1 2025 reached 85.704 billion yuan, a year-on-year increase of 17.99% [2] - Major game companies have shown robust growth, with Century Huatong's revenue increasing by 91% year-on-year to 8.145 billion yuan, and Perfect World achieving a 52% revenue increase due to the successful launch of "Zhu Xian World" [2] - A-share leading game companies are expected to have a dynamic PE ratio concentrated in the range of 11 to 17 times, indicating that valuations are still at historical lows, combined with high dividend yields from companies like Sanqi Interactive Entertainment and Gigabit Technology [2]

Core Viewpoint - The release of "Three Kingdoms Fantasy Continent 2: Song of the Heroes" has faced a rapid decline in reputation within a week, despite a strong initial performance on the iOS free game chart [1][3]. Performance Summary - "Song of the Heroes" debuted at the top of the iOS free game chart but fell to 36th place by May 23, and briefly entered the Top 10 of the revenue chart before dropping out of the top 20 [3][5]. - The game's rating on TapTap plummeted to 5.3, with a significant number of one-star reviews, indicating a poor reception among players [3]. Comparison with Predecessor - The predecessor, "Three Kingdoms Fantasy Continent," launched in 2020 and consistently ranked in the top 10, ultimately generating over 10 billion in revenue, establishing itself as a phenomenon in the card game genre [5]. - In contrast, "Song of the Heroes" has struggled to maintain a competitive position, being compared unfavorably to lesser-known games [5]. Artistic and Gameplay Changes - The project team acknowledged the importance of art style in attracting players, noting that the original game's aesthetic successfully drew in a diverse user base [6]. - The sequel has undergone significant changes in art style, moving away from the previous aesthetic that appealed to many players, which may alienate existing fans while attempting to attract new ones [10][12]. Narrative and User Experience - The narrative approach in "Song of the Heroes" has been criticized for lacking depth and failing to engage players, with a focus on a "camera-like" character perspective that diminishes player involvement [10][12]. - The storyline has been described as superficial, with the game failing to effectively utilize the Three Kingdoms backdrop, leading to dissatisfaction among players [12]. Company Background and Future Outlook - Lingxi Interactive Entertainment, a subsidiary of Alibaba, has seen mixed results in its gaming ventures, with internal criticisms regarding its cultural alignment with Alibaba's broader goals [16][18]. - The company aims to become the third-largest game company in China within eight years, but the poor reception of "Song of the Heroes" poses significant challenges to achieving this goal [18].

人工智能持续发展有望提振游戏板块。游戏领域属于比较成熟的人工智能应用领域，因为很多游戏的建模，包括游戏人物的制作，游戏里面的对话脚本编 制，原本就是人工智能的成熟应用领域。图像领域本身也是人工智能很大的应用领域之一，图像领域性能提升了，可以直接降低游戏公司的研发成本，包括 可以让游戏公司以更快的效率优化自己的研发效率和产品交付的周期，这些都能产生正面贡献。 此外，结合大语言模型能否产生新的玩法也是游戏行业的增长点之一。例如剧本编写方面，给大语言模型一个提纲去编写剧本，再给它一些新的指引，让它 再去调优，未来或可产生新的玩法。未来可能通过大语言模型直接赋予游戏内人物独立人格，可以让它自己在游戏的世界里面去完成自己的动作和行为，也 即真正能够在虚拟世界里面再去创造出虚拟世界。 游戏公司业绩维持稳健增长，板块估值中枢有望修复。根据中国音数协游戏工委（GPC）发布的数据，2025年一季度，中国游戏市场实际销售收入为857.04 亿元，同比增长17.99%。一季度，世纪华通营收同比+91%，达到81.45亿元，创新高；游族网络实现归母净利润2470万元，同比增长43.7%；完美世界在 《诛仙世界》成功上线带动下，营收同 ...

Core Viewpoint - The forum focused on "nurturing new generation talents" and discussed the establishment of a collaborative talent cultivation platform among government, universities, and enterprises, highlighting the importance of talent in the development of the gaming industry in China [2][3]. Group 1: Talent Development Initiatives - The "Million Talents Gathering in South Guangdong" initiative aims to attract one million graduates and various talents to Guangdong for employment and entrepreneurship, with 37 Interactive Entertainment actively supporting this plan [2]. - 37 Interactive Entertainment emphasizes the importance of talent cultivation as a strategic foundation for its development, collaborating with multiple universities on various industry-academia projects to create a platform that integrates theory and practice [3][5]. - The company aims to deepen cooperation with universities to establish a long-term mechanism for collaborative talent cultivation, optimizing its internal talent development system to provide ample growth opportunities for students [3][8]. Group 2: Innovative Talent Recruitment Strategies - The company has implemented flexible recruitment policies, such as removing graduation date restrictions and allowing 80% of positions to be open to all majors, to help students overcome employment barriers [5][6]. - 37 Interactive Entertainment reports a high retention rate, with one in three new hires being promoted within a year and a 60% conversion rate from interns to full-time employees, indicating strong performance in talent retention [6]. Group 3: Future Talent Ecosystem - The company is focused on creating a new ecosystem for the development of the new generation of talents, with plans to cultivate "AI-driven and innovative super individuals" [7]. - A personalized training system is being developed to meet the growth needs of new generation employees, including cross-departmental rotations and mentorship opportunities [7]. - The year 2025 is identified as a critical year for the cultivation and development of new generation talents, with the company maintaining a strategy of diversification, quality, and globalization to support talent attraction and development [8].

Core Insights - The "Going Global - 2025 Cultural Export Growth Strategy Forum" was held on May 24, attracting various stakeholders to discuss new trends and strategic directions for cultural exports [1] - The gaming industry has become a significant part of China's revenue, with Guangdong's gaming industry projected to generate 260.43 billion yuan in 2024, including overseas revenue of 42.36 billion yuan, reflecting a year-on-year growth of 9.9% [1] - Guangzhou's gaming sector is particularly notable, with total revenue of approximately 140.67 billion yuan in 2024, and overseas revenue of 19.06 billion yuan, accounting for 45% of the province's total overseas gaming revenue [2] Industry Performance - The "Guangzhou Gaming Going Global Index" was launched to provide data support and strategic reference for gaming companies looking to expand internationally [2] - Guangzhou's gaming companies excel in the SLG (Strategy Game) segment, ranking among the top three globally [2] - Notable successes include "Puzzles & Survival" by 37 Interactive Entertainment, which entered the top ten of the iOS bestseller list in 52 regions within a year, and "Ningchao" by Kuro Game, which topped the iOS free list in 107 countries [2] Future Trends - The founder of Fuzhou Yangfan Outbound Network Technology Co., Ltd. highlighted Guangzhou as one of China's four major cities for mobile game exports, with a strong presence of mid-tier companies capable of global distribution [3] - The establishment of the "Guangdong-Hong Kong-Macao Greater Bay Area Cultural Export Alliance" aims to enhance regional cooperation and support high-quality cultural exports through technological innovation and localized strategies [3]

Core Viewpoint - The article highlights the rapid development of a billion-level digital entertainment industry cluster in the western part of Shenzhen, driven by Tencent's new headquarters and supportive government policies aimed at establishing a new high ground for the digital entertainment industry in the Guangdong-Hong Kong-Macao Greater Bay Area [1][5]. Group 1: Policy Initiatives - Bao'an District has introduced the "Bao'an District Digital Entertainment Industry Support Plan," which includes rent discounts, enterprise growth support, game license applications, and ecosystem development to foster a concentrated development model for the digital entertainment industry [3][4]. - The support plan offers significant financial incentives, including up to 1 million yuan for outstanding game companies and subsidies of 20,000 yuan per game license approved by the National Press and Publication Administration, with a maximum of 1 million yuan per company [3][4]. Group 2: Economic Impact - The total investment for Tencent's "Internet+" Future Technology City, also known as "Penguin Island," is 31.9 billion yuan, with a total construction area of 2 million square meters, positioning it as a global focal point for the digital entertainment industry [1][5]. - The implementation of the support plan is expected to accelerate the upgrade of the digital entertainment industry, enhance industry value, attract high-end talent, and promote the development of industry clusters, contributing to Shenzhen's goal of becoming a globally influential digital creative industry hub [5].