Core Insights - The ChinaJoy event highlights the explosive growth of the gaming ecosystem, with significant participation from Huawei's HarmonyOS, showcasing its commitment to the gaming sector [1][2] - The gaming market faces high customer acquisition costs and intense competition, prompting manufacturers to seek new solutions and challenge traditional distribution channels [2] - Huawei's HarmonyOS has surpassed 10 million terminal devices, with over 500 game developers joining its ecosystem and more than 6,500 games launched, indicating a robust foundation for high-quality development in the gaming industry [2] Group 1: Technological Advancements - The collaboration between Huawei and Tencent is a major highlight, with Tencent's games like "Teamfight Tactics" and "League of Legends Mobile" launching on HarmonyOS, showcasing improved game performance metrics [3] - The optimization of the "Honor of Kings" game on HarmonyOS has resulted in a 21% improvement in responsiveness, crucial for multiplayer online battle arena (MOBA) games [3] - Technical enhancements have led to significant performance improvements, such as an 80% increase in startup speed and a 20% reduction in power consumption for games [4] Group 2: Innovative Game Interactions - Multi-modal interactions are emerging as a breakthrough in narrative-driven games, with features like voice-activated story branches and dynamic card functions enhancing user engagement [5] - The HarmonyOS ecosystem supports over 30,000 applications and services, facilitating the transition of multi-modal interaction from concept to tangible user experiences [5] Group 3: Growth of Mini-Games - The rapid rise of mini-games within the HarmonyOS ecosystem is evident, with over 6,500 games available that cater to a wide range of user preferences [6] - Tencent's adaptation of major titles to HarmonyOS serves as an industry benchmark, driven by the platform's distributed capabilities and extensive user base [6] - The "no-network play" feature allows users to enjoy games in offline environments, redefining casual gaming experiences [7] Group 4: Future Outlook - The continued growth of HarmonyOS terminals and the deepening of technical capabilities are expected to lead to an explosive phase for the gaming ecosystem in the next two years [7] - The "outbound + HarmonyOS ecosystem" model is anticipated to enhance China's gaming presence in the global market, increasing its competitive edge [7]

Core Insights - The ChinaJoy event highlights the explosive growth of the gaming ecosystem, with Huawei's HarmonyOS making significant strides in the gaming sector [1][8] - The gaming market faces high customer acquisition costs and intense competition, prompting manufacturers to seek new solutions [3][9] - Huawei's HarmonyOS has surpassed 10 million terminal devices, with over 500 game developers and 6,500 games now available on the platform, indicating a mature ecosystem [3][4] Group 1: Market Dynamics - Traditional app stores are losing their value as new channels like social platforms emerge, disrupting the flow of traffic and revenue models [3][9] - The collaboration between Huawei and Tencent is a key highlight, with Tencent's games like "League of Legends Mobile" and "Teamfight Tactics" launching on HarmonyOS [4][9] - The performance improvements in games, such as a 21% increase in responsiveness for "Honor of Kings," demonstrate the technical advancements of HarmonyOS [4][5] Group 2: Technological Advancements - HarmonyOS has implemented various technologies that enhance gaming performance, including an 80% increase in startup speed and a 20% reduction in power consumption [5][10] - Multi-modal interaction is emerging as an innovative breakthrough in narrative games, allowing players to engage with the story through voice commands and other interactive features [5][6] - The ecosystem's capabilities are expanding, with over 30,000 applications and services currently in development [6] Group 3: Industry Support and Growth - The ecosystem supports both large and small game developers, with a low-barrier, high-empowerment support system in place [10] - Mini-games are rapidly gaining traction within the ecosystem, leveraging lightweight and scenario-based advantages to redefine casual gaming experiences [10][11] - The ongoing growth of HarmonyOS terminals and its deepening technological capabilities suggest that the gaming ecosystem is poised for explosive growth in the next two years, potentially reshaping the domestic gaming market [11]

Industry Dynamics - In July, a total of 134 game licenses were issued, with 127 being domestic games, indicating a stable approval rate for the year with 893 domestic online games approved so far [2] - The proportion of casual puzzle games among the approved titles saw a significant decline, dropping to 27.6% [2] - The Chinese Football Association plans to establish a national esports football team to participate in various international esports football competitions [3] Company Developments - The domestic AAA game "Mingmo: Yuanshu Zhi Yu" was globally released, but faced controversy due to issues like identical content in different editions and price discrepancies, leading to a drop in its Steam rating from below 20% to 34% after the developers issued an apology and adjusted prices [4] - The game is expected to contribute to the growth of the single-player market in China, with industry experts suggesting that the market for high-quality domestic single-player games is on the rise [4][6] - The gaming company Paper Games experienced executive changes, with Yao Runhao resigning as the legal representative of multiple companies [7] - Zhejiang Shuju Culture held a shareholder meeting to increase its board members from 5 to 7, adding an independent director and a staff representative [8] - NetEase won a bid for a big data platform project with Huatai Securities, amounting to approximately 1.43 million yuan [9] International Developments - The international version of "No Man's Sky" was launched, with the domestic version expected to be released in the fall [11] - Finnish mobile gaming giant Supercell announced an investment in AI gaming company Glass Bead Games, founded by former Alibaba executives [12][13] Esports Events - The third anniversary celebration of "League of Legends Mobile" was successfully held, with teams JT, EW, and TT.Chenxi winning their respective championships [14] - The 2025 League of Legends World Championship will return to China, scheduled from October 14 to November 9 [15]

Group 1: Game Releases - Tencent's new MMO "Star Resonance" officially launched on July 17, 2023, and topped the iOS free chart on its opening day [1] - "I Am Surrounded by Beautiful Women! 2" was released on Steam on July 17, 2023, maintaining romance simulation elements while focusing on ancient costume comedy and suspense [3] - "The Age of Discovery: Legends" was launched on July 17, 2023, allowing players to navigate as sailors during the 16th-century Age of Discovery [5] - Nintendo's "Donkey Kong: Bananarama" was released on July 17, 2023, receiving an average score of 91 from 87 media outlets on Metacritic, with IGN giving it a perfect score [7] - "Lily's "Far Light 84" began its third testing phase on July 18, 2023, featuring first-person shooting and multi-civilization warfare gameplay [9] Group 2: Industry News - Century Huatong released its 2025 first-half performance data on July 14, 2023, reporting a consolidated revenue of approximately 17 billion, a year-on-year increase of about 83.27%, and an expected net profit of 2.4 billion to 3 billion, reflecting a year-on-year growth of 107.20% to 159.00% [15] - The Shanghai Game Industry Report for the first half of 2025 was published on July 15, 2023, indicating that the overall sales revenue of online games in Shanghai reached approximately 83.28 billion, a year-on-year increase of 10.80%, with domestic revenue at 68.74 billion and overseas revenue at 14.55 billion, both achieving double-digit growth [17]

Market Development - The Chinese esports market is projected to reach approximately 179 billion yuan in 2024, reflecting a year-on-year growth of 5.5%, indicating a robust development trend [1][3][4] - The user base for esports in China is estimated to be around 511 million in 2024, with a slight year-on-year increase of 0.6%, showing a stable user growth [1][6] Industry Dynamics - The current core dynamics of the Chinese esports industry include accelerated internationalization, establishment of standardized systems, diversification of ecosystems, and widespread public participation, all contributing to the market's growth and prosperity [1] - The esports industry is experiencing a shift towards globalization, emphasizing long-term value, diversified business models, and aging-friendly adaptations, which are expected to drive new breakthroughs in the industry [1][38][41] User Characteristics - Esports users are gradually expanding from a younger demographic to a broader age range, with 68.5% of users aged 30 and below, while those aged 30 and above have increased to 31.5% [1][26] - A significant majority of esports users, 79.4%, believe that esports are important to their lives, and 90.5% hold a positive and optimistic view of the industry's future [1][33] Internationalization - China's esports industry has made significant strides in internationalization, becoming a major venue for international esports events and enhancing the global recognition of Chinese esports IPs [1][16] - Major international events like the Esports Olympics and Esports World Cup are pivotal for establishing a cross-national esports ecosystem, laying a solid foundation for the global development of the industry [1][16] Standardization - The esports industry is in a critical phase of sportsification, with the establishment of industry and talent standards becoming a core driver of development [1][19] - National policies and local practices are working together to create stability and replicability in the industry, while dual-track vocational training and education are addressing the talent gap [1][19] Diversification - The diversification of esports content, ecosystem, and collaboration areas is unlocking further growth potential, transitioning from a gaming industry to a broader entertainment industry [1][22] - This diversification enriches the content and forms of esports, injecting innovation and market vitality into the industry [1][22] Popularization - The popularization of esports is breaking traditional user limitations, expanding participation from professional stages to broader public life scenarios [1][24] - This process not only promotes the development of esports culture but also aids in the dissemination of social goodwill and positive energy [1][24] Future Trends - The esports industry is expected to continue its growth trajectory, with projections indicating that the overall market size may exceed 200 billion yuan by 2027 [3][4] - The emergence of a "silver-haired esports" market is anticipated as the aging population increasingly engages with esports, highlighting the need for an age-friendly esports ecosystem [1][48]

Core Viewpoint - 2024 is a bustling year for China's internet industry, with a significant shift towards AI applications, overshadowing previous trends like the metaverse [3][4]. Financial Performance - Major internet companies reported their revenue and profit for 2024, showcasing varied growth rates across the board: - JD: Revenue of 115.88 billion, up 7%; Net profit of 41.4 billion, up 71% [5] - Alibaba: Revenue of 98.18 billion, up 6%; Net profit of 120.4 billion, up 20% [5] - Tencent: Revenue of 66.03 billion, up 8%; Net profit of 194.1 billion, up 68% [5] - Pinduoduo: Revenue of 39.38 billion, up 59%; Net profit of 112.4 billion, up 87% [5] - Xiaomi: Revenue of 36.59 billion, up 35%; Net profit of 2.45 billion, up 23% [5] - Baidu: Revenue of 13.31 billion, down 1%; Net profit of 2.38 billion, up 17% [5] - Kuaishou: Revenue of 12.69 billion, up 12%; Net profit of 1.53 billion, up 140% [5] - Bilibili: Revenue of 2.68 billion, up 19%; Net loss of 0.14 billion, up 72% [5] Gaming Sector - Tencent remains the leader in the gaming sector with revenue of 197.7 billion, up 10% [7]. - Bilibili's gaming revenue reached 5.6 billion, with a significant growth of 40% [8]. Video Sector - Tencent Video's subscription revenue grew by 3%, with 113 million subscribers [10]. - Bilibili's diverse monetization strategies led to a 500% increase in creator income [10]. E-commerce Sector - Alibaba's Taotian Group reported revenue of 136.1 billion, up 5% [12]. - JD's retail revenue reached 307.1 billion, up 14.7% [12]. - Pinduoduo's revenue for the quarter was 110.1 billion, with a profit of 108.4 billion, up 85% [12]. Smart Hardware - Xiaomi's smartphone revenue was 191.8 billion, up 23%, with a strong focus on high-end models [14]. - Revenue from electric vehicles reached 32.8 billion, contributing 9% to overall revenue [14]. Advertising Revenue - Kuaishou's online marketing services accounted for 57% of total revenue, reaching 72.4 billion, up 20% [16]. - Bilibili's advertising revenue grew by 28%, reaching 8.2 billion [16]. International Expansion - Tencent's international gaming revenue was 58 billion, up 9% [18]. - Xiaomi's overseas revenue reached 153.3 billion, accounting for 41.9% of total revenue [18]. AI Development - Baidu's non-online marketing revenue was 31.7 billion, up 12%, driven by AI cloud services [23]. - Tencent and Alibaba are also heavily investing in AI, with significant revenue growth in their respective AI services [24].

Core Viewpoint - The article discusses Tencent's recent financial performance and strategic direction in the gaming industry, highlighting its growth in both domestic and international markets, as well as its focus on long-lasting games and internal restructuring to enhance operational efficiency [2][3][10]. Group 1: Financial Performance - In Q4 2024, Tencent reported revenue of 1724.5 billion RMB, a year-on-year increase of 11%, with adjusted net profit rising by 30% to 553.1 billion RMB [2]. - For the full year 2024, Tencent achieved total revenue of 6602.57 billion RMB, up 8% year-on-year, and net profit of 1940.73 billion RMB, reflecting a 68% increase [2]. - The gaming segment generated revenue of 492 billion RMB in Q4 2024, with domestic gaming revenue growing by 23% to 332 billion RMB and international revenue increasing by 15% to 160 billion RMB [5]. Group 2: Gaming Business Growth - In 2024, Tencent's total gaming revenue reached 1977 billion RMB, a 9.9% year-on-year increase, with domestic revenue at 1397 billion RMB (10% growth) and international revenue at 580 billion RMB (9% growth) [6]. - Key contributors to domestic growth included titles like "Valorant," "Naruto," "Teamfight Tactics," and "League of Legends Mobile," along with new revenue from "Dungeon & Fighter: Origin" and "Delta Force" [6]. - The game "Teamfight Tactics" maintained strong growth, with Q4 revenue increasing by 30% year-on-year, achieving double-digit growth for eight consecutive quarters [6]. Group 3: Strategic Initiatives - Tencent's "Evergreen Game" strategy, which focuses on games with annual revenue exceeding 4 billion RMB and high daily active users, has expanded from 12 to 14 titles [11]. - The company is restructuring its internal organization to enhance operational efficiency and focus on long-lasting games, with adjustments made to various departments [13][14]. - Tencent's gaming division has seen a rise in daily active users for its top five games during the recent Spring Festival compared to the previous year, indicating increased popularity [14]. Group 4: International Market Performance - Tencent's international gaming revenue growth was driven by strong performances from "PUBG MOBILE" and Supercell games, with Supercell reporting a total revenue of 2.8 billion euros (approximately 3 billion USD) in 2024, a 77% year-on-year increase [9]. - The acquisition of Supercell nine years ago for 8.6 billion USD has laid a solid foundation for Tencent's subsequent international expansion [9]. Group 5: Social Network and Other Business Growth - Tencent's social network business, including music streaming and video services, saw a 2% revenue increase due to growth in mini-game platform service fees and mobile game in-app purchases [15]. - The number of paid members for Tencent Video reached 113 million, maintaining its leading position in China's long video market, while Tencent Music's subscription revenue grew by 25.9% to 15.23 billion RMB [15].

Core Viewpoint - Tencent Games is undergoing significant organizational restructuring within its Interactive Entertainment Group (IEG) to enhance operational efficiency and focus on vertical market segments, reflecting a strategic shift towards a more refined game development approach [2][3][5][7]. Group 1: Organizational Changes - Tencent IEG has announced the establishment of five new departments, including a distribution support center and various product departments focused on specific game genres [2]. - The restructuring involves streamlining the domestic distribution line, with the aim of improving cross-project collaboration through a flatter management structure [3][5]. - This marks the second major organizational change within IEG in 2025, indicating a commitment to continuous adaptation and improvement in response to market dynamics [8]. Group 2: Strategic Focus - The adjustments reflect Tencent's strategy to concentrate on "evergreen games," which are expected to maintain long-term revenue potential rather than pursuing short-term gains from less competitive projects [7][12]. - Tencent's internal communication emphasizes a shift from a focus on immediate profitability to exploring new opportunities and innovative game concepts [14][15]. - The company is increasingly recognizing the importance of content-driven strategies over traditional channel advantages, indicating a broader industry trend towards valuing creativity in game development [17][18]. Group 3: Market Performance - Tencent's games, such as "Honor of Kings" and "Peacekeeper Elite," continue to dominate the market, with "Honor of Kings" achieving over 100 million daily active users [9][13]. - The competitive landscape shows a widening revenue gap between Tencent and its main competitor, NetEase, highlighting Tencent's strong market position [13]. - The company's focus on long-term game sustainability is evident, with 19 titles classified as having high potential for longevity, including 7 in international markets [12].