Core Insights - The overseas version of NetEase's martial arts open-world game "Where Winds Meet" has surpassed 15 million players in its first month since release [1][2] - The PC version achieved over 9 million players within two weeks and ranked second on the Steam bestseller list [1][2] - The mobile version has topped the free game charts in 60 markets on the App Store, marking it as a significant cultural export from China [1][2] Company Strategy - The game's release is seen as an opportunity for Chinese game developers to tell Chinese cultural stories to a global audience [1][2] - As the first martial arts open-world game led by Chinese technology and focused on Chinese narratives, it aims to enhance the global perception of Chinese culture [1][2] - The company plans to adapt the game for more devices and implement additional localized languages to provide an immersive experience of traditional Chinese culture [1][2]

Core Viewpoint - The game "New Moon Together" will stop updating after 417 days since its launch, and it has been removed from various platforms, although players can still log in [1][2]. Group 1: Game Development and Performance - The development team expressed regret over the project's failure to meet expectations but aimed to provide a satisfactory conclusion by completing the storyline in the final update [4]. - The game maintained a stable player rating between 7.5 and 8.2 during its operation, and it took four years to develop before its release in October 2024 [8][13]. - The game peaked at number one on the iOS free games chart and reached number 27 on the revenue chart but quickly declined thereafter [13]. Group 2: Player Sentiment and Community Response - Players had anticipated the game's decline, especially after the extension of update cycles from 28 to 42 days during the anniversary celebration [6]. - The emotional response from players is understandable, as the development team put significant effort into refining the game despite limited resources [8]. - The departure of key writer Bai Bohuan, who contributed to the game's narrative quality, was seen as a significant loss, impacting player attachment to the game [15]. Group 3: Industry Context and Competitive Landscape - The game faced stiff competition from other turn-based RPGs like "Honkai: Star Rail" and "Return to Future 1999," which outperformed it in content and gameplay [20]. - The industry trend shows that many games, including those from major developers, are facing similar fates of discontinuation, with a significant percentage of games not surviving their first year [23][25]. - The concept of a "dignified exit" for games is becoming more prevalent, with some titles opting for less abrupt endings to maintain player goodwill [30].

Core Insights - The success of "Expedition 33" at TGA 2025 is attributed not only to the developer Sandfall Interactive but also significantly to the publisher Kepler Interactive, which was invested in by NetEase for $120 million in 2021 [1][3][4] - Kepler Interactive operates as a unique alliance of developers rather than a traditional publisher, allowing for a collaborative decision-making structure among its member studios [5][6][9] Group 1: Kepler Interactive's Model - Kepler Interactive is described as a developer co-governance model, where founders of the seven studios form a decision-making committee, allowing for shared ownership and collaborative decision-making [5][6] - This model provides member studios with essential support in human resources, legal, and IT, while maintaining creative autonomy [6][9] - Kepler aims to be recognized for high-quality mid-tier games, similar to A24 in the film industry, focusing on unique and innovative game designs [9] Group 2: Success Factors of "Expedition 33" - "Expedition 33" successfully filled a market gap for 2A games, particularly in the JRPG genre, which had seen a decline in offerings [10][12] - The game was developed with a restrained cost strategy, reportedly under $30 million, allowing for a sustainable development approach [14][15] - Sandfall Interactive plans to maintain a small team of under 50 people to ensure agility and creativity in future projects, avoiding the pitfalls of larger team structures [15][16] Group 3: Implications for the Industry - The success of "Expedition 33" highlights the potential for innovative publishing models to revitalize the gaming industry, encouraging a focus on efficient development processes [17] - NetEase's investment in Kepler serves as a case study for other major companies to consider investing in promising publishers and developers that understand market dynamics [17]

Summary of the Conference Call for Giant Network Industry Overview - The gaming sector is experiencing a valuation correction, currently around 20 times earnings, down from a previous high of 25 times, indicating potential for further upside to the 25-30 times range [2][4] - The gaming industry is expected to see a significant product launch year in 2026, with major titles from companies like Perfect World, Tencent, Lilith, and miHoYo, alleviating concerns about declining product growth [2][6] Company Performance - Giant Network's game "Supernatural" has performed exceptionally well, generating 1.5 billion yuan in revenue from July to September, with September's revenue exceeding expectations and daily active users (DAU) reaching a record high of nearly 7 million during the National Day holiday [2][7] - The revenue recognition cycle for "Supernatural" was adjusted from two months to three months, which could increase revenue by approximately 270 million yuan, bringing total revenue to 3 billion yuan and profit to 850 million yuan for the third quarter [2][8] - The sales expense ratio for "Supernatural" is maintained below 20% of revenue, with a net profit margin of 50%, primarily due to a high percentage of downloads from the official website, resulting in lower channel costs [2][9] Future Product Pipeline - In addition to "Supernatural," Giant Network has several upcoming titles, including "Famous Generals Kill," "5000 Years," and "Pocket Fighting," with expectations of quarterly profits of 300-400 million yuan in 2026 and "Supernatural" potentially generating 6 billion yuan in revenue [3][14] Market Trends and Opportunities - The Chinese gaming market is diversifying, with both large productions and casual games coexisting, driven by user demand for casual gaming experiences [10] - There is a notable shift towards targeting younger and female demographics, with companies like Giant Network and others developing games that appeal to these groups [10][11][13] - The gaming industry is witnessing a rise in casual games that cater to modern lifestyles, providing quick entertainment options [10] Investment Insights - The current market correction offers a favorable entry point for investors, with a potential upside of 50% as valuations have adjusted from 25 times to below 20 times [5] - The overall performance of the gaming sector is expected to stabilize, with a long-term outlook suggesting valuations could reach 25-30 times [4] Conclusion - Giant Network is well-positioned for future growth, with a strong product pipeline and a focus on expanding its user base. The company is expected to maintain its leading position in the market, potentially driving significant profits and market sentiment in the coming years [14]

Core Insights - The 2025 BGM Game Exhibition recently concluded in Shanghai, showcasing new independent games and facilitating connections between developers and industry resources through events like the "BUFF Roadshow" [1][3] - A growing trend in the Chinese gaming industry is the emergence of a model focused on bridging independent games with market opportunities, reflecting a significant evolution and demand within the independent game ecosystem [3] Industry Trends - Independent games are currently experiencing an unprecedented "golden age," driven by a growing player base and decreasing development barriers, indicating a broad market potential [4] - The sales revenue of independent games on the Steam platform reached nearly $4 billion in the first nine months of 2024, accounting for 48% of Steam's total game sales revenue of $8.3 billion [5] - Sales of independent games on major platforms like Steam and Epic Games Store have seen a growth rate of 30% [7] Challenges and Opportunities - The independent game development sector faces two core challenges: the arduous creative process and unstable income, leading to a high exit rate of 85% to 90% among creators after completing a game [7] - The advent of AI technology has significantly transformed the independent game creation landscape, enabling explosive growth in production capacity and drastically reducing costs, thus allowing for more flexible and diverse participation in the industry [7][8] Strategic Shifts - The content strategy of independent game developers is undergoing profound changes, with many games evolving from small-scale projects to more polished and larger productions, challenging the previous notion of "small and refined" [8] - The definition of independent games is expanding, as they are now seen as content-driven rather than limited by size or platform, emphasizing creativity and flexibility [8]

Core Viewpoint - The article discusses the current state of the artificial intelligence (AI) stock market, highlighting that while many AI stocks have reached new highs, not all are justified by their fundamentals. It emphasizes that there are still investment opportunities available, even for those with limited capital, such as $200 [2][3]. Group 1: Datadog - Datadog provides IT system analysis to ensure smooth operations, crucial for e-commerce and customer service [5]. - The company has made significant strides in supporting the AI industry, with 500 AI-native companies among its 32,000 customers, contributing to a revenue increase from AI customers to 12%, up from 6% a year ago [6]. - Datadog reported a revenue growth of 28% last quarter, with remaining performance obligations increasing by 53%, indicating strong future results [8]. - Non-AI customer revenue also grew by 20%, supported by high customer retention metrics [9]. - Despite a high forward P/E ratio of 75, the company benefits from cloud migration and generative AI trends, suggesting long-term growth potential [10]. Group 2: Fortinet - Fortinet specializes in next-gen firewalls and software-based security solutions, with significant growth in its SASE and SecOps offerings, which grew by 19% and 33% respectively [12][13]. - The company is positioned to capture market share in the growing SASE and SecOps markets, projected to grow at 18% and 10% annually through 2029 [13]. - Fortinet's diversified security offerings enhance customer retention and improve its threat detection capabilities through machine learning [15]. - The stock's forward P/E of 31 and EV-to-sales ratio of 8.7 are considered attractive for a company with double-digit sales growth [16]. Group 3: Tencent - Tencent operates popular mobile games and the WeChat platform, also being a major cloud service provider in China [17]. - The company's AI advancements have led to a 21% increase in ad revenue, driven by improved targeting and campaign optimization tools [18]. - Despite supply constraints affecting its cloud computing growth, Tencent has sufficient GPUs for its needs and is developing AI tools to enhance productivity in game development [19]. - The stock trades at about $78, with a forward P/E of just over 17, making it appealing for investors looking for growth opportunities in AI [22].

The New York State Gaming Commission issued Hard Rock International and Mets owner Steve Cohen a gaming license, clearing the way for the developers to begin construction on an $8.1 billion casino project near Citi Field in Queens https://t.co/jPRS5rryHf ...

RT GameShift (@GameShiftGG)Breakpoint @SolanaConf was a blast; now let’s rewind and catch up on everything happening on @solana Gaming this week 👾This week’s highlights:- @AuroryProject dropped the anime trailer for Amiko Legends- @GameShiftGG announced the Omakase AI Game Engine and Omakase IP Marketplace- @cfldotfun announced the CFL Winter Cup, featuring a $2K prize pool and Trophy Frames, running from Dec 15–22- @PlayOCRS launched public access for all users- @moonwalkfitness, and @cfldotfun were mentio ...

Core Insights - Ubisoft is acquiring the rights to "March of Giants" from Amazon, aiming to strengthen its position in the rapidly growing MOBA market [1][3] - The game has received positive feedback from closed alpha testing, with 98% of participants indicating it brings something new to the genre [3] - The acquisition will bring an experienced development team to Ubisoft, enhancing its capabilities in creating competitive and live games [4][5] Company Summary - Ubisoft is committed to enriching players' lives with original entertainment experiences and has a diverse portfolio of successful game franchises [8] - The acquisition of "March of Giants" aligns with Ubisoft's strategy to innovate within the MOBA segment, which is expected to see significant revenue growth in the coming years [3][5] - The deal is anticipated to close by December 16, 2025, although specific financial terms have not been disclosed [5] Industry Summary - The global MOBA market is one of the largest segments in gaming, with hundreds of millions of active players and a forecasted revenue doubling by 2030 [3] - "March of Giants" is positioned to attract both existing MOBA fans and new audiences, contributing to the growth of competitive gaming communities [3][5] - The game's development team, including veterans from Ubisoft, is expected to leverage their expertise to create a successful live competitive game [4][5]

Core Insights - The independent female-oriented game sector is experiencing significant scrutiny and pressure from community opinions, despite being smaller in scale compared to larger studios [1][15][18] - The market for female players is expanding, with female gamers constituting 48% of the gaming population in China as of June 2025, up 3.1 percentage points from the end of 2024 [14][15] - Independent developers face challenges in conducting market research due to limited resources and the subjective nature of emotional needs, leading to reliance on social media feedback [5][10][11] Group 1 - Many independent female-oriented game developers are hesitant to engage with media or community discussions due to the potential backlash and pressure from public opinion [1][2] - The community's demand for more female-oriented games is growing, yet there is a notable scarcity of new releases in this genre, leading to heightened expectations for independent titles [14][15][18] - Developers often prioritize creative expression over commercial viability, which can complicate their approach to market research and community engagement [2][3][5] Group 2 - The emotional needs of players are complex and difficult to quantify, making it challenging for developers to align their products with audience expectations [3][5][9] - Players often exhibit a phenomenon known as "social desirability," where they provide responses that they believe are more acceptable rather than their true feelings, complicating user research [9][10] - Successful independent games often benefit from long-term engagement with their audience, allowing for a buffer against immediate criticism and fostering trust [25][31] Group 3 - The launch of independent games can lead to mixed reactions, as seen with titles like "Monster's Throne," which faced criticism despite having a strong narrative [27][30][31] - Developers express a desire for understanding and respect from the community, yet the pressure to conform to established norms can lead to creative conflicts [20][21][31] - The disparity between the core audience and vocal community members can result in misalignment, where emotional and fragmented feedback overshadows the voices of dedicated players [31]