Core Insights - The 22nd ChinaJoy has opened with unprecedented enthusiasm, showcasing a significant recovery in the interactive entertainment industry compared to last year [1][6][3] - The event features over 11,000 square meters of exhibition space, attracting hundreds of companies and thousands of new products, with expected attendance reaching several hundred thousand [3][6] - The domestic gaming market has achieved a record revenue of 168 billion yuan in the first half of 2025, marking a year-on-year growth of 14.08% [6] Industry Overview - ChinaJoy has evolved from a simple gaming exhibition to a comprehensive "technology + entertainment" event, becoming a barometer for the interactive entertainment industry [3] - The event includes 11 exhibition halls and showcases major digital entertainment sectors such as gaming, animation, internet film and television, music, esports, and new entertainment [3][6] Company Highlights - Major gaming companies like Tencent, NetEase, Giant Network, and Perfect World are showcasing multiple products, with Tencent occupying nearly half of the N4 hall with 17 products [8] - NetEase is presenting 45 games under the theme "Challenge! My Passion Partner," while Century Huatong features 13 games and an immersive "Game for Gamers" theme [8] Product Launches - Notable new games include NetEase's "Destiny: Stars" and Tencent's global premiere of "Runeterra: League of Legends Card Battle" [9][10] - Classic IPs are also highlighted, with Tencent showcasing three products from the "Dungeon and Fighter" series [13] Technological Innovations - Century Huatong's "Game+Lab" is demonstrating AI integration in gaming, showcasing tools like AI character editors and brain language assessment platforms [14] - Three Seven Interactive's self-developed model "Xiao Qi" has significantly improved art material generation efficiency and AI customer service accuracy [18] Industry Discussions - Industry leaders are discussing the need to bridge the gap between high performance and value perception in the gaming market, emphasizing the importance of cultural depth and intellectual property protection [17] - The focus is on transforming technological innovations into industry momentum, with a push for personalized content generation and non-linear gameplay as future battlegrounds [18]

Core Viewpoint - Tencent Holdings Ltd. is evaluating the possibility of acquiring a controlling stake in South Korean gaming company Nexon Co., having engaged in discussions with the family of the late founder Kim Jung-ju [1][12]. Group 1: Company Overview - Nexon, founded in 1994, is one of the earliest companies to commercialize online gaming in South Korea, with notable titles including "MapleStory," "Bubble Fighter," and "Dungeon & Fighter" [1]. - As of June 2024, NXC and its affiliate NXMH BV hold approximately 44.4% of Nexon, while the Kim Jung-ju family directly controls about 67.6% of NXC [1]. Group 2: Market Performance - Nexon went public on the Tokyo Stock Exchange in 2011, reaching a market capitalization of over $20 billion at one point. As of June 2025, its market cap is approximately $15 billion, reflecting a nearly 30% decline from its peak in 2021, although it has increased by over 10% since the beginning of this year [2]. Group 3: Strategic Importance - If the acquisition is successful, it would represent Tencent's most strategically significant move in the Asian gaming industry in recent years [5]. - Tencent has a long-standing cooperative history with Nexon, with "Dungeon & Fighter" being a significant revenue source for Tencent's gaming business. The successful performance of Nexon's single-player ARPG "Kazan," based on the DNF IP, further underscores the potential for business synergy [9]. Group 4: Historical Context - This is not Tencent's first interest in acquiring Nexon; in 2019, there were plans for a potential acquisition, but they fell through due to significant valuation disagreements [6]. - Following the death of Kim Jung-ju in 2022, his family transferred some NXC shares to the South Korean government to pay high inheritance taxes and sold some treasury shares in 2023. The government attempted to sell its NXC shares but could not find a buyer [8]. Group 5: Broader Investment Strategy - Since 2025, Tencent has been actively increasing its investments in overseas entertainment assets. In May of this year, Tencent Music Entertainment Group acquired nearly 10% of South Korean entertainment company SM Entertainment [10]. - The acceleration of Tencent's investments in South Korea aligns with the ongoing recovery and deepening of cultural exchanges between China and South Korea [10].