Summary of Evergreen Games Conference Call Industry Overview - The conference focuses on the evergreen games sector, highlighting the potential for significant revenue growth through effective operations, as demonstrated by Tencent's Supercell game "Clash Royale," which achieved $140 million in revenue in Q2 2025, a 90% quarter-over-quarter increase and over 40% year-over-year growth [2][3] - Companies with evergreen game potential typically possess high Daily Active Users (DAU) and social gameplay attributes, or own classic native IPs that can be continuously iterated and updated, particularly in SLG (Simulation and Strategy Games) and MMO (Massively Multiplayer Online) genres, which have high player sunk costs and stronger user retention [2][5] Key Insights and Arguments - Evergreen game companies generally have valuations above the industry average, with companies like Nintendo, Take-Two, and Nexon showing strong forward Price-to-Earnings (PE) ratios, indicating high market expectations for future earnings [2][6] - As of early 2025, Nintendo's forward PE was 36, TikTok's was 27, and Nexon's was 26, averaging 26, which is higher than the average valuation of the A-share and Hong Kong game sectors, which is below 20 [7] - The operational methodology for evergreen games includes simple content updates, seasonal updates, and continuous iteration of core gameplay and monetization strategies, creating a platform that encourages ongoing player engagement and spending [9][10] Company-Specific Strategies - Tencent's strategy for 2025 emphasizes the operation of headlining games while adjusting its organizational structure to enhance producer incentives, focusing on long-term development and middle-tier games like "Crossfire" and "League of Legends" [4][11] - Nintendo aims to maintain user engagement by expanding gameplay on its platforms, creating "infinite" products that encourage continuous player interaction and consumption [12][13] - Tencent's overseas game revenue accounts for approximately 30%, with Supercell, Riot Games, and Miniclip being significant contributors [14] Potential Companies for Evergreen Games - Companies with successful evergreen game potential typically have large DAU advantages and social gameplay attributes, such as Tencent and Giant Network's new title "Supernatural Action Team" [5] - Companies with classic native IPs that can be continuously updated, like Nintendo with its Mario and Pokémon franchises, and Nexon with its Dungeon Fighter Online (DNF) IP, also show strong potential [5][29] - SLG and MMO games are identified as having longer lifecycle potential due to their inherent player engagement characteristics [30] Valuation Insights - Evergreen game companies are generally valued significantly higher than the industry average, with stable and continuous revenue growth being a key factor supporting these high valuations [6] - The report highlights the importance of maintaining a balance between hardware and software revenue, with Nintendo's software revenue becoming a more significant contributor as hardware sales plateaued [18][19] Conclusion - The evergreen games sector is characterized by companies that can maintain player engagement through continuous updates and strong IPs, leading to sustained revenue growth and higher valuations compared to the broader gaming industry. The strategies employed by leading companies like Tencent and Nintendo serve as benchmarks for success in this evolving market.

Group 1 - The core argument revolves around the ongoing debate about the Nintendo Switch 2, which is priced at 3000 yuan and has hardware that is considered five years behind the times, yet its sales may still perform well due to exclusive games [1][3][39] - Nintendo's strategy with the Switch 2 is primarily about maintaining its market position rather than innovating, focusing on exclusive titles like Mario, Zelda, and Pokémon to drive sales [5][6][8] - Despite criticisms regarding its launch lineup, the Switch 2 has generated significant pre-order interest globally, indicating strong market demand [9][10] Group 2 - Sony is reportedly developing a next-generation handheld console that will be able to run games locally, unlike the current PlayStation Portal, which only streams games [14][15] - The new Sony handheld is expected to target a more hardcore gaming audience, contrasting with Nintendo's broader market approach [18][19] - Microsoft is shifting its focus from developing a dedicated Xbox handheld to optimizing Windows 11 for gaming, indicating a strategic pivot towards software and services rather than hardware [22][27] Group 3 - The competition for Nintendo is not just from other gaming consoles but also from mobile gaming, which has significantly impacted the gaming landscape [40][41] - Nintendo aims to expand its gaming ecosystem to attract a wider audience, including casual gamers who may prefer mobile gaming experiences [42][44] - The company has diversified its revenue streams beyond gaming, positioning itself as an entertainment company while maintaining a strong focus on delivering enjoyable gaming experiences [49][50]

Core Viewpoint - The article highlights the innovative teaching methods of a geography teacher who uses video games as educational tools to engage students in learning geography in a fun and interactive way [5][19]. Group 1: Teaching Methods - The geography teacher, known as @胖胖地球君, incorporates video game visuals, such as those from "The Legend of Zelda," into his lessons to make geography more relatable and enjoyable for high school students [5][6]. - He utilizes various games like "Cities: Skylines" and "Discovering Journey: Ancient Greece" to teach geographical concepts, demonstrating a creative approach to education [5][6]. - The teacher encourages students to explore real-world maps and fictional locations, fostering critical thinking and engagement with geographical content [7][19]. Group 2: Student Engagement - The teacher's unique methods have led to increased student participation, as they actively engage in discussions and problem-solving related to geographical concepts [17][19]. - Students are encouraged to analyze complex geographical scenarios, such as the climate requirements for fictional locations, which enhances their understanding of real-world geography [15][17]. - The interactive nature of the lessons has resulted in a community of geography enthusiasts, both among students and online viewers, who share a passion for exploring geographical knowledge [19][31]. Group 3: Broader Impact - The article emphasizes the role of maps as essential tools for understanding history, culture, and geography, showcasing how they can inspire creativity and critical thinking [21][25]. - Other content creators on platforms like Bilibili also utilize maps to explain historical events and geographical phenomena, contributing to a broader interest in geography [23][25]. - The collaborative environment fostered by the teacher and his online presence encourages a shared exploration of geography, making it a vibrant and engaging field of study [31].