Industry Developments - The Xu Hui District officially released the "Game Overseas Service Manual," focusing on the increasingly complex overseas processes and core issues in the gaming industry [2] - The manual includes sections on tools and markets such as the US, Japan, South Korea, Russia, Indonesia, and Vietnam, analyzing both mature and emerging markets [2] - Despite the competition in mature markets, emerging markets show significantly higher growth rates, presenting opportunities for small and niche developers [2] Company Updates - NetEase's Bad Brain Game Studios and Fantastic Pixel Castle will close on November 17 due to funding withdrawal and failure to find new publishers [4][5] - Hero Game's "Double Helix" public test performance was below expectations, leading to the announcement of five optimization measures [6][7] - Changyou Technology registered two new software copyrights, marking a 200% increase in registrations compared to the previous year [8] Regulatory and Compliance - YouTube will tighten age restrictions on game videos starting November 17, affecting videos with realistic human characters and violent content [9] - Shengqu Games won a trademark infringement lawsuit, receiving compensation of 200,000 yuan [8] International Developments - Krafton announced the Q4 testing of the mobile game "Palworld," which will replicate the core gameplay of its PC version [10] - Take-Two Interactive announced a six-month delay for the release of "GTA6," now set for November 19, 2026, to ensure quality [11] Esports - The 2025 League of Legends World Championship finals took place in Chengdu, with T1 defeating KT to win the S15 championship [1]

Core Insights - The article discusses the launch of "Dual Helix," a new game that aims to disrupt the traditional mobile game market by addressing common player frustrations with existing games [2][28] - The game has gained significant attention for its unconventional approach, which includes eliminating gacha mechanics, stamina limits, and randomization in character development [5][11] Industry Trends - The mobile gaming market has been criticized for its repetitive and grind-heavy gameplay, leading to player burnout and dissatisfaction [2][19] - Many existing games rely on established monetization strategies, such as gacha systems and stamina mechanics, which have become industry norms [7][23] Company Strategy - "Dual Helix" has adopted a long-term operational strategy, focusing on player experience rather than short-term profits, by shifting monetization to cosmetic purchases [11][27] - The game has already seen over 15 million global pre-registrations and topped the iOS free charts shortly after its pre-download launch [13] Game Features - The game features a rich narrative and gameplay that balances action and story, with a high-quality art style [4] - Key changes include the removal of character and weapon gacha systems, allowing players to obtain all characters and weapons without relying on luck [7][8] - Stamina limits have been eliminated, enabling players to engage with the game at their own pace, which is a significant departure from traditional mobile games [8][25] Market Response - The initial reception of "Dual Helix" has been positive, with significant player engagement and interest, but there are concerns regarding game optimization and long-term content sustainability [19][23] - The game’s approach may prompt other developers to reconsider their monetization strategies and player engagement practices [28]

Group 1 - The A-share market opened positively on October 24, with the Shanghai Composite Index rising by 0.17%, the Shenzhen Component Index increasing by 0.51%, and the ChiNext Index up by 0.83% [1] - The storage concept is gaining momentum, with commercial aerospace, quantum technology, and GPU concepts leading the gains, while short dramas, cultivated diamonds, and coal sectors experienced slight declines [1] - The gaming sector showed a slight upward trend, with the gaming ETF (159869) experiencing a minor increase. As of October 23, the gaming ETF has seen a net inflow of 256 million yuan over the past five trading days, indicating strong investor interest, with a total product scale of 11.115 billion yuan [1] Group 2 - On October 22, the National Press and Publication Administration announced that 159 domestic games received approval for release in October, along with 7 imported games, totaling 166 games, maintaining a high approval level [2] - In 2025, a total of 1,440 games have received approval, including 1,354 domestic games and 86 imported games, reflecting a robust gaming market [2] - The gaming sector is experiencing multiple catalysts, including AI, content, and commercialization model transformations, with the gaming ETF (159869) tracking the performance of the A-share listed companies in the animation and gaming industry [2]

Group 1 - The Hong Kong internet sector is experiencing a rebound, with stocks such as Black Sesame Intelligence, Weishi Jiajie, and UBTECH rising over 5% [1] - The Hang Seng Internet ETF (513330) has followed the index's upward trend [1] - In October, the proportion of new game releases from well-known game manufacturers is increasing, with titles from NetEase and other companies covering various subcategories [1] Group 2 - Zheshang Securities believes that traditional internet business has bottomed out, and with the Federal Reserve's interest rate cuts, the AI business is rapidly developing [1] - The valuation of the Hong Kong internet sector remains at historical lows, indicating potential for early recovery [1]

Investment Rating - The report maintains an "Outperform" rating for the media industry [1] Core Insights - The media sector outperformed the market in September 2025, with the Shenwan Media Index rising by 4.96%, surpassing the CSI 300 Index by 1.76 percentage points, ranking 5th among 31 industries [2][19] - The gaming market showed a slight month-on-month revenue increase of 0.6% in August, driven by favorable policies, market sentiment, and AI applications [2][27] - The report highlights the importance of new product cycles and regulatory shifts in the gaming sector, as well as the potential for growth in advertising and film content due to improving economic conditions [4][107] Summary by Sections Market and Industry Review - In September 2025, the media sector ranked 5th among 31 industries, with a TTM-PE of 46.5x, placing it in the 95.9th percentile over the past five years [19][25] - The gaming sector saw 145 domestic and 11 imported games approved in September, with a total of 1,275 game licenses issued from January to September, marking a 23.2% year-on-year increase [27][29] Gaming Sector - The gaming market's revenue in August was 29.3 billion yuan, down 13.0% year-on-year but up 0.6% month-on-month, with mobile gaming revenue at 21.5 billion yuan, down 4.2% year-on-year but up 0.8% month-on-month [35][36] - The report emphasizes the ongoing release of game licenses and the potential for growth driven by new product cycles and AI applications [27][28] Film and Television Sector - The total box office for September reached 2.661 billion yuan, a year-on-year increase of 82.8%, while the National Day box office fell by 12.8% to 1.835 billion yuan due to a lack of blockbuster films [45][58] - The report notes that the drama market maintained high viewership levels, with the top series achieving significant viewership numbers [67] AI Applications - The report discusses breakthroughs in AI technology, including Meta's advancements in RAG technology and OpenAI's release of Sora2, which supports high-quality video and audio generation [78][90] - The rapid development of AI applications is seen as a key driver for growth across various sectors, including gaming and advertising [4][107] Investment Recommendations - The report recommends focusing on the gaming sector's new product cycles and the potential for recovery in advertising and film sectors, suggesting specific companies such as Kayi Network and Mango Super Media for investment [4][107] - The October investment portfolio includes Bilibili, Mango Super Media, Perfect World, and Focus Media, reflecting a positive outlook for these companies [4][112]

Core Insights - Over 20 new games are set to launch in October, with key titles from major companies like NetEase, Tencent, and Bilibili, showcasing a diverse range of genres and trends in the gaming industry [2][3] Game Releases - NetEase is releasing three major titles: tactical team RPG "Marvel Secret Wars," multiplayer sci-fi shooter "Destiny: Stars" (domestic version), and strategy adventure RPG "unVEIL the world" [3] - Tencent is launching the card RPG "Kaeas Dream" overseas, marking its entry into the sub-genre of anime games [3] - Other companies like Hero Game, Dream Creation, and Bilibili are also releasing new titles, indicating a crowded market in October [3] Industry Trends - The new games reflect three core trends: a pursuit of high-quality products, continuous revaluation of IP value, and ongoing micro-innovations in gameplay [2] - Multi-platform releases have become a common strategy, allowing companies to expand user reach while ensuring a consistent experience across platforms [6] Market Dynamics - The gaming industry is experiencing a surge in new releases, driven by increased interest and a normalization of game license approvals, with 156 licenses issued in September alone [4] - The delay of "GTA6" to May 2026 has led to speculation about its impact on the market, but analysts suggest that the concentration of new releases is a broader trend rather than a direct consequence of this delay [4] Performance Metrics - "Destiny: Stars" has seen significant pre-launch interest, with over 10 million players completing reservations [5] - "Kara Bichu" mobile version has surpassed 10 million pre-registrations, indicating strong market demand [3] - "Escape from Duckov," published by Bilibili, has performed well in both domestic and international markets, showcasing its global appeal [5]

Core Viewpoint - Alibaba's Tongyi models dominate the global open-source model rankings, with Qwen3-Omni achieving top performance in various data processing capabilities [4][6]. Group 1: AI and Technology Developments - Alibaba's Tongyi has released 300+ models, with over 600 million downloads and more than 170,000 derivative models, ranking first globally [4]. - Xiaomi showcased its SU7 Ultra electric vehicle in Japan, with plans to expand its retail presence in the country [4]. - Didi's overseas ride-hailing service has launched in Australia, New Zealand, and Egypt, expanding its reach to 12 countries and over 1,000 cities [7]. Group 2: Automotive and Transportation Innovations - BYD reported September sales of 396,270 vehicles, with overseas sales growing by 107% year-on-year [5]. - WeRide has initiated trial operations for its Robotaxi and Robobus in Ras Al Khaimah, UAE, marking a significant step in its autonomous vehicle deployment [7][8]. Group 3: Energy and Sustainability Initiatives - EVE Energy has partnered with TSL Assembly to deploy a 1GWh energy storage project in Central and Eastern Europe, aiming to support regional green energy transitions [8]. Group 4: Global Expansion and Financing Activities - Unnamed companies have secured significant funding rounds to enhance their global operations, including a B+ round for Weiming Shiguang and a Pre-A round for Baixing Intelligent [9][10]. - Over 170 Chinese companies are participating in the 2025 Tokyo Game Show, highlighting the growing presence of Chinese firms in the global gaming industry [12].

Core Viewpoint - The 2025 Tokyo Game Show features over 1,136 exhibitors, with more than half being international companies, highlighting the global expansion strategy of Chinese and Korean firms while Japanese companies primarily rely on domestic demand [2][4]. Group 1: Chinese Companies - Tencent Holdings showcased a new installment of the "Monster Hunter" series developed in collaboration with Capcom during the Tokyo Game Show [4]. - Hero Games is set to release the RPG game "Duet Night Abyss" in October, supporting multiple languages including Japanese, English, Chinese, and Korean, with plans to add French and Spanish later [5]. Group 2: Korean Companies - Netmarble gained attention for developing a new game based on the popular manga "The Seven Deadly Sins," set to launch in January 2026 and supporting 12 languages [6]. - Netmarble aims to leverage its marketing experience in the Western markets to deepen collaborations with Japanese publishers and animation studios [6]. Group 3: Emerging Companies - Red Dunes Games from the UAE is striving to catch up with Chinese and Korean firms, significantly expanding its exhibition space at the Tokyo Game Show and showcasing 12 titles [7]. - The CEO of Red Dunes Games emphasized the importance of the Tokyo Game Show for global expansion opportunities [7]. Group 4: American Companies - Electronic Arts participated in the Tokyo Game Show for the first time in a decade, highlighting its upcoming shooting game "Battlefield" [7]. - Riot Games also made its debut at the event, featuring a playable area for its new fighting game "2XKO" and a photo area with game characters [7]. Group 5: Industry Trends - The Tokyo Game Show serves as a platform for companies to showcase unreleased titles and gather real feedback from players, indicating the competitive nature of the global gaming market [7].

Core Insights - The gaming industry is witnessing a shift away from traditional gacha systems, with several games announcing the removal of card-drawing mechanics to enhance player experience and trust [1][18] - The decline in the market size of RPG gacha games in China has prompted developers to explore alternative monetization strategies [1][18] Group 1: Industry Trends - Many games, including "Er Chong Luo Xian" and "Huan Ta," are adopting zero-spending models, indicating a significant change in the approach to monetization [1][16] - Sensor Tower reports a three-year continuous decline in the market size of RPG gacha games, suggesting that traditional monetization methods are becoming less effective [1][18] Group 2: Case Studies - GungHo's "Puzzle & Dragons" has successfully removed the gacha system in its new title "Puzzle & Dragons 0," focusing on material collection and synthesis instead [3][6] - The new monetization model in "Puzzle & Dragons 0" resembles an IAA (In-App Advertising) game, allowing players to earn rewards through ad views [5][6] - "Er Chong Luo Xian" has been compared to "Warframe" due to its gameplay and monetization changes, which include removing stamina limits and the gacha system [9][11] Group 3: Competitive Landscape - "Huan Ta" plans to launch a new server that eliminates the gacha system, offering players free SSR weapons and focusing on player retention [13][16] - "Liu Tu Zhi Bin" has introduced a "youth server" that allows players to draw cards without spending money, while still offering optional paid features [16][18] - The introduction of new gameplay modes and monetization strategies aims to attract and retain players in a competitive market [12][18]

Core Insights - The game "Dual Helix" is set to launch its global public beta on October 28, 2023, following extensive player feedback from previous tests [1][3] - The game has made significant changes to its monetization model, moving away from traditional gacha mechanics and stamina systems to focus on cosmetic purchases [4][20] Game Development and Changes - The development of "Dual Helix" has been characterized by continuous adjustments based on player feedback, leading to the removal of the character and weapon gacha system and stamina limits [7][8] - The new system allows players to obtain characters and weapons for free through gameplay, enhancing the overall gaming experience [10][20] Industry Context - The current market for mobile games in the anime genre is highly competitive, with a reported 8% decline in revenue year-on-year for the first half of 2025 [21][26] - Many games in this genre still rely on traditional monetization frameworks, which have led to player dissatisfaction due to high costs and frustration with random mechanics [22][24] Strategic Implications - The shift in "Dual Helix" represents a bold move away from established monetization practices, potentially setting a new standard for the industry by prioritizing gameplay experience over traditional gacha systems [24][28] - The success of this model could influence other developers to explore non-gacha monetization strategies, reshaping the relationship between gameplay experience and monetization in the industry [24][28]