Core Insights - "Kares Dream" is a new card game that has gained significant popularity, topping free charts in multiple countries shortly after its pre-download launch, despite limited marketing efforts [1][2] - Developed by South Korean company Smilegate, known for successful titles like "Crossfire" and "Epic Seven," the game is expected to leverage Tencent's strong distribution capabilities in China [2][3] Game Mechanics and Features - The game features a unique gameplay loop that combines roguelike elements with card mechanics, allowing players to form teams and progress through various in-game challenges [3][6] - It is designed to appeal to hardcore players who enjoy deep character development and strategic gameplay, differentiating itself from other games in the market [6][20] - The game includes a "crisis system" that adds complexity to gameplay, although it has received mixed feedback regarding its clarity and impact on player experience [10][12] Art and Design - The game's art style and UI design have been praised for their quality, contributing to an immersive experience that resonates with players [14][15] - The visual elements are influenced by the success of previous titles, aiming to create a strong emotional connection between players and characters [17][25] Market Position and Strategy - The game reflects a mature production philosophy prevalent in the South Korean gaming industry, focusing on high-quality art and deep gameplay mechanics [17][20] - It aims to cater to a niche audience of dedicated players, contrasting with broader market trends that favor larger-scale productions [23][30] - The shift from a "gacha" monetization model to a more balanced approach indicates responsiveness to player feedback and market demands [29][30]

Investment Rating - The report maintains a "Recommended" rating for the gaming industry, indicating a positive outlook for the sector [3][6]. Core Insights - In August 2025, a total of 173 game licenses were issued, with 166 being domestic and 7 imported, marking a significant increase in the number of licenses issued compared to the same period in 2024 [1][6]. - The report highlights key games that received approval, including titles from major companies such as Tencent, NetEase, and Bilibili, which are expected to contribute positively to their respective revenues [6]. - The issuance of game licenses has been stable and consistent throughout 2025, with a total of 1,050 domestic and 69 imported licenses issued so far this year, reflecting a strong recovery in the gaming market [6]. Industry Overview - The gaming industry is characterized by a total of 160 listed companies, with a total market capitalization of 2,014.6 billion and a circulating market capitalization of 1,832.2 billion [3]. - The absolute performance of the industry has shown a significant increase of 75.8% over the past 12 months, indicating strong growth potential [5]. - The report emphasizes the ongoing success of established games and the potential for new releases to drive revenue growth, particularly for companies like Tencent and Giant Network [6].

Group 1 - The A-share market for online gaming stocks has shown strong performance, with Sanqi Interactive Entertainment hitting the daily limit and reaching a new high since December 2023, while Icefire Network rose over 5% [1] - The gaming ETF from Huatai-PineBridge has increased by over 2%, with a year-to-date gain of 50% [2] - The gaming ETF tracks the CSI Animation and Gaming Index, reflecting the overall performance of A-share listed companies in the animation and gaming industry [3] Group 2 - Sanqi Interactive Entertainment announced a projected revenue of 8.486 billion yuan and a net profit of 1.4 billion yuan for the first half of 2025, representing a year-on-year growth of 10.72%. The company plans to distribute a cash dividend of 2.10 yuan per 10 shares, totaling approximately 462 million yuan [3] - The National Press and Publication Administration approved a record 166 domestic online games on August 25, marking a historical high. In the first eight months of this year, 1,050 domestic game licenses have been issued, significantly higher than the 850 issued during the same period last year [4] - The gaming industry in China continued to grow in July 2025, with the domestic market size reaching 29.084 billion yuan, a year-on-year increase of 4.62%. Mobile gaming grew by 0.92%, while client games saw a 16.56% increase [4]