Core Viewpoint - The article highlights how various Shanghai-based game developers are integrating traditional Chinese culture into their games to enhance the festive atmosphere during the upcoming Lunar New Year, creating immersive experiences for players. Group 1: Cultural Integration in Game Design - MiHoYo's "Honkai: Star Rail" introduced a new character "Yao Guang," whose design incorporates Miao silver jewelry and movements inspired by peacock dance, showcasing the vibrant charm of traditional culture [6] - Shanghai Deyou's "Shining Nikki" launched the "Brilliant Light of Heavy Abyss" outfit inspired by the Sanxingdui bronze tree, with academic consultation from the excavation team to ensure cultural accuracy [7] - The game has previously collaborated with various cultural institutions to create outfits and events that reflect traditional Chinese arts, such as Peking opera costumes and other intangible cultural heritage [7] Group 2: Incorporation of Traditional Customs - MiHoYo's "Zhuoqu Zero" features a "Gold Expansion Day" event where players receive online invitations and in-game currency as "lucky money," blending traditional customs into gameplay [8] - "Undecided Incident" focuses on a "Treasure Appraisal Mystery" event, using Kunqu opera music to enhance the historical storytelling experience for players [8] - Shanghai Eagle Horn Network's "Arknights" introduced a new gameplay feature with Chinese characters, allowing players to engage with the cultural significance of the New Year while enjoying the game [9] Group 3: Virtual and Real-world Integration - Shanghai-based game companies are collaborating with cultural institutions to create a seamless blend of virtual and real-world experiences during the Lunar New Year [10] - "Legendary New Hundred District" partnered with the Guandi Temple in Shanxi to offer players opportunities to win traditional cultural items, promoting awareness of cultural heritage among younger audiences [10] - The integration of traditional New Year customs into gameplay allows players to enjoy both gaming and cultural experiences, making the virtual world a new space for celebrating the festival [10]

Core Viewpoint - MiHoYo terminated its cooperation with Shanghai Huiye Law Firm due to a conflict of interest involving a lawyer who assisted a competing company, Envision Energy, in a lawsuit against MiHoYo [1][7][15]. Group 1: Incident Background - The conflict originated in June 2025 when Envision Energy filed a lawsuit against MiHoYo, claiming that a fictional antagonist in MiHoYo's game "Honkai: Star Rail" resembled their brand, causing reputational damage [4][6]. - MiHoYo counter-sued Envision Energy in December 2025 for commercial defamation [6]. - By February 2026, Envision Energy withdrew its lawsuit, which was approved by the court [7]. Group 2: Legal and Ethical Implications - The lawyer from Huiye Law Firm, who was MiHoYo's long-term legal advisor, was found to have collected evidence for Envision Energy despite knowing the conflict of interest, violating legal regulations [7][14]. - The Shanghai Judicial Bureau warned the lawyer for privately accepting a commission, which is prohibited under the Lawyer Law [7][14]. - Huiye Law Firm acknowledged the incident highlighted deficiencies in their dynamic conflict of interest monitoring system and pledged to improve compliance standards [15]. Group 3: Industry Context - The incident reflects the challenges within large law firms where lawyers operate with significant autonomy, often leading to potential conflicts of interest [11][13]. - The legal services market in China is characterized by a commission-based distribution model, which can complicate conflict management [11][13]. - MiHoYo's proactive stance in protecting its intellectual property rights indicates a broader trend in the gaming industry to safeguard intangible assets [15].

Core Viewpoint - The legal dispute between Yuanjing Energy and Mihayou, stemming from the portrayal of a fictional company in Mihayou's game "Zhongguo Zero," has concluded with Yuanjing Energy voluntarily withdrawing its lawsuit, while Mihayou has terminated its relationship with the law firm involved due to a conflict of interest [1][4][9]. Group 1: Legal Dispute Overview - Yuanjing Energy filed a lawsuit against Mihayou in June 2025, claiming that the fictional "Yuanjing Company" in the game "Zhongguo Zero" could confuse consumers due to its similar branding to Yuanjing Energy's trademark "ENVISION" [9][11]. - The lawsuit was officially concluded on February 10, 2026, when Yuanjing Energy withdrew its case, and the court approved the withdrawal [1][11]. - Prior to the lawsuit, Yuanjing Energy had requested Mihayou to modify the game's content, but Mihayou refused, citing creative freedom [9][11]. Group 2: Law Firm Involvement and Consequences - Mihayou announced the termination of all cooperation with Shanghai Huiye Law Firm due to serious conflicts of interest, as a senior partner at the firm acted against legal ethics by assisting Yuanjing Energy while representing Mihayou [4][7]. - The law firm was permanently blacklisted by Mihayou, and a complaint was filed against the involved lawyer, Zhou Kaichang, leading to administrative penalties from the local judicial bureau [4][7][13]. - The incident highlights the importance of conflict of interest management within legal practices, especially for large law firms [13].

Core Viewpoint - MiHoYo has terminated its relationship with Shanghai Huiye Law Firm due to a conflict of interest involving a lawyer from the firm who acted against MiHoYo's interests during a legal dispute with a third party [1][3] Group 1: Legal Advisory Context - Shanghai Huiye Law Firm, established in 1999, has developed into a leading comprehensive law firm in China, focusing on commercial legal services across various sectors [3] - The firm employs over 2,000 practicing lawyers and professionals, providing services in areas such as corporate law, mergers and acquisitions, foreign investment, intellectual property, and dispute resolution [3] - MiHoYo typically engages multiple law firms for legal advisory services, reflecting the complexity and scale of its operations [3] Group 2: Conflict of Interest Incident - The incident involved Zhou Kaichang, a senior partner at Huiye Law Firm, who allegedly acted beyond the scope of the legal advisory contract with MiHoYo, leading to a breach of legal ethics [1][3] - MiHoYo has permanently blacklisted Huiye Law Firm from future collaborations due to this violation of its rights [1] Group 3: Background of the Dispute - The legal dispute between MiHoYo and Envision Energy originated from the portrayal of a fictional entity named "Envision Industries" in MiHoYo's game "Honkai: Star Rail," which Envision Energy claimed damaged its reputation [4] - Envision Energy had previously attempted to resolve the issue through communication with MiHoYo, requesting changes to the game's content, which MiHoYo refused, citing creative freedom [4] Group 4: Ongoing Legal Proceedings - The case has progressed through various stages of litigation, with MiHoYo filing a counterclaim against Envision Energy for commercial defamation [5]

Core Viewpoint - MiHoYo has terminated its partnership with Shanghai Huiye Law Firm due to a conflict of interest involving a lawyer from the firm who acted against MiHoYo's interests during a legal case involving a third party [1] Group 1: Company Actions - MiHoYo has decided to end all cooperation with Shanghai Huiye Law Firm and has placed the firm on a permanent blacklist, prohibiting any future collaboration [1] - The decision was made after it was revealed that a senior partner at Huiye Law Firm acted beyond the scope of their contract and assisted a third party in collecting evidence for a lawsuit against MiHoYo [1] Group 2: Legal Context - The incident highlights the importance of conflict of interest management in legal practices, where lawyers are expected to seek client consent for any potential conflicts [2] - The legal advisory services can be categorized into general legal counsel and specialized legal counsel, with larger companies like MiHoYo typically engaging multiple law firms for various legal needs [2] Group 3: Background of the Dispute - The dispute between MiHoYo and Envision Energy originated from the game "Honkai: Star Rail," which featured a fictional entity named "Envision Industries" that was portrayed negatively, leading to a lawsuit from Envision Energy [3] - Envision Energy had previously attempted to resolve the issue amicably by requesting changes to the game's content but was denied by MiHoYo, citing creative freedom [3]

Core Viewpoint - The issuance of gold as year-end rewards by game companies reflects a recovery in the gaming industry, with 22 companies adopting this practice in 2025, indicating a positive trend in market performance and employee morale [3][10]. Group 1: Industry Recovery - The Chinese gaming market is projected to generate revenues of 350.79 billion yuan in 2025, marking a year-on-year growth of 7.68%, with a user base of 683 million, an increase of 1.35% [3]. - Many publicly listed gaming companies have announced a turnaround from losses to profits in their 2025 performance forecasts [3][10]. Group 2: Gold as a Reward - Gold has become a favored reward among gaming companies due to its rising market value, with gold prices reaching historical highs in 2025, enhancing its appeal as a financial asset [6]. - The distribution of gold rewards varies: some companies provide gold to all employees, while others include it in a lottery or award it to employees with special contributions [6][7]. Group 3: Company Examples - Notable companies issuing gold rewards include Bilibili, Youlong Entertainment, and Kuro Games, with varying amounts of gold awarded based on company policies [6][7]. - Companies with successful products, particularly in the anime and mobile gaming sectors, are more likely to offer gold rewards, such as Mihayou and Kuro, which have seen significant revenue growth [9]. Group 4: Employee Engagement - The practice of awarding gold not only serves as a financial incentive but also enhances company visibility and attractiveness to potential talent, especially for smaller firms competing against larger entities like Tencent and NetEase [7]. - Employees have mixed reactions to gold rewards, with some valuing the emotional significance while others prefer to liquidate the asset immediately [6].

Core Insights - The gaming industry in China is experiencing a recovery, with projected revenue of 350.79 billion yuan in 2025, marking a year-on-year growth of 7.68% and a user base of 683 million, an increase of 1.35% [2][8] - 22 gaming companies have adopted gold as a year-end reward for employees, reflecting the industry's positive outlook and the rising gold prices [2][3] Group 1: Employee Rewards - Companies are giving gold as year-end rewards, with examples including a 5-gram gold bracelet valued at 8,425 yuan given to employees of Mu Tong Technology [2] - The distribution of gold rewards varies: some companies provide gold to all employees, while others include it in a lottery or award it to employees with special contributions [4][5] - The trend of giving gold is linked to its rising value and serves as a morale booster for employees [3][6] Group 2: Company Performance - Several gaming companies are reporting significant financial improvements, with many expected to turn losses into profits in 2025 [2][8] - Companies like Century Huatong and Gigabit are forecasting substantial profit increases, with Century Huatong's net profit expected to rise by 357.5% to 475.3% [8] - MiHoYo's flagship game "Genshin Impact" is projected to generate over 40 billion yuan in global revenue in 2025, highlighting the success of its products [7][8] Group 3: Market Trends - The popularity of gold as a reward is influenced by its status as a sought-after investment, with gold prices reaching historical highs in 2025 [3] - Companies that are less well-known, but have profitable products, are using gold rewards to enhance their employer brand and attract talent [6] - The gaming industry is seeing a resurgence, with many companies capitalizing on successful products and expanding their market presence [8]

Core Viewpoint - The 2026 Taipei International Game Show showcased a significant interest in mainland Chinese games among Taiwanese players, highlighting the cultural resonance and innovative gameplay of these titles [1][2][3]. Group 1: Event Overview - The Taipei International Game Show took place from January 29 to February 1, featuring 399 exhibitors and over 500 games [1]. - Popular mainland games such as "Ming Chao," "Tomorrow's Ark: End of the World," "Absolute Zero," and "Escape from Duckkov" attracted large crowds, with "Ming Chao" being particularly favored by Taiwanese players [1][2]. Group 2: Player Engagement - The "Ming Chao" booth estimated over 2,500 visitors in a single day, indicating high enthusiasm among Taiwanese players [1]. - A 25-year-old player expressed excitement about returning to the event after years, specifically for games like "Ming Chao" and "Absolute Zero," citing appealing character designs and engaging storylines [1]. Group 3: Cultural Impact - Mainland games are increasingly popular in Taiwan due to their incorporation of traditional Chinese cultural elements, such as historical themes and martial arts, which resonate with local players [2][3]. - The rise of mainland games has sparked discussions in Taiwanese gaming forums, with players engaging in historical analyses related to game narratives, showcasing the educational aspect of these games [3]. Group 4: Industry Recognition - A recent editorial in Taiwanese media highlighted the ascent of the mainland gaming industry, attributing its success to high-quality content and cultural significance, which effectively showcases the charm of Chinese culture to a global audience [3].

Core Insights - The mobile gaming market in China is projected to see a 16% increase in overseas revenue in 2025 compared to 2024, with 30 games making the top list, including six new entries [1][28] - The 4X strategy genre remains the leading category for overseas revenue, accounting for over 30% of the top games [1][28] Group 1: Company Performance - Point Interactive leads in revenue with its game "Whiteout Survival," which is the only title exceeding $1 billion in overseas revenue, contributing over $4 billion globally by December 2025 [3] - Lemon Microfun has two titles in the top 30, with "Gossip Harbor" achieving a revenue increase of approximately 100% year-on-year, reaching over $70 million by December 2025 [5][12] - Mihayou has the most games in the top 30, with "Honkai: Star Rail," "Genshin Impact," and "Zero Zone" ranking 5th, 8th, and 18th respectively, primarily generating revenue from Japan, the US, and South Korea [12][28] Group 2: Game Highlights - "Kingshot" by Point Interactive, a 4X strategy game, has shown consistent monthly revenue growth since its launch in February 2025, ranking 3rd in the revenue list [3] - Florere Game's "Last Z: Survival Shooter" and "Dark War: Survival" both made their debut in the top 10, with the former achieving a revenue increase of over 15 times from early 2025 to December [14][15] - "Love and Deep Space" by Paper Games has seen a 70% increase in overseas revenue, ranking 15th in the top 30, with a total revenue exceeding $369 million [21][28] Group 3: Growth Trends - The growth leaderboard is dominated by mid-core games, with 11 4X strategy titles included, and 8 new games making the list [2] - Point Interactive's "Tasty Travels: Merge Game" saw a revenue increase from approximately $650,000 in January to $11 million by December, marking a nearly 17-fold growth [5] - "Merge Cooking" by Happibits entered the revenue list at 28th and the growth list at 13th, with a monthly growth rate of about 20% in Q1 2025 [10]

Core Viewpoint - MiHoYo has established itself as a unique player in the domestic gaming industry, successfully competing with industry giants without relying on mergers and acquisitions, instead focusing on core products like "Genshin Impact" and "Honkai" series, while building a vast investment network across various sectors including AI, aerospace, and energy [1][6]. Investment Landscape - In early 2026, MiHoYo's investment strategy became more visible with the IPO applications of three companies: Suplay, MiniMax, and Soulgate, showcasing its diverse investment portfolio [2][3]. - MiHoYo holds significant stakes in these companies, being the largest external shareholder in Suplay (11.86%), an angel investor in MiniMax (approximately 6.4%), and a key institutional shareholder in Soulgate (5.47%) [3]. Strategic Focus - The investments in AI, trendy toys, and social platforms align with MiHoYo's vision of constructing a "virtual world," addressing three core aspects: technological foundation, IP monetization, and user entry points [8][9]. - MiniMax's technology is integrated into MiHoYo's games, enhancing content production efficiency and user interaction, with MiniMax's revenue reaching 380 million RMB in the first three quarters of 2025, a 174.7% year-on-year increase [13][14]. Monetization and User Engagement - Suplay has transformed its business model through MiHoYo's investment, significantly increasing its revenue from MiHoYo's IPs, which contributed over 60% of its earnings as of September 2025 [15][17]. - Soul, targeting Gen Z users, has become a crucial platform for virtual social interaction, with 390 million registered users and a daily active user rate of 1.1 million, 78.7% of whom are Gen Z [18][19]. Investment Strategy Evolution - MiHoYo's investment strategy shifted significantly in 2021, expanding beyond gaming content to include hard tech sectors like brain-computer interfaces and nuclear fusion, driven by strong cash flow from "Genshin Impact" [24][25]. - The company’s decision to avoid external investments allows it to focus on long-term strategic goals without pressure for short-term returns, with founders holding over 85% of the shares [26]. Long-term Vision - MiHoYo aims to create a virtual world that integrates social, consumer, work, and entertainment aspects, necessitating investments in diverse technologies like AI and energy [28][29]. - The company's investments are strategically aligned to build a technological foundation for this virtual world, indicating a comprehensive approach to future growth [30]. Conclusion - MiHoYo's investment strategy reflects a broader trend in the cultural technology industry, emphasizing the importance of integrating content, technology, and consumer engagement to maintain competitive advantage [32][33].