Core Insights - The core issue identified by the company is the failure of the new game "解限机" to meet expectations, particularly in its monetization and player engagement strategies [1][4][11] Financial Performance - In the first half of 2025, the company's gaming revenue was 1.988 billion yuan, a year-on-year decline of 10% [2] - Q2 revenue was 0.952 billion yuan, showing a year-on-year decline of 26% and a quarter-on-quarter decline of 8% [2] Game Launch and Reception - "解限机" generated approximately 0.1 billion yuan in its first month, but its peak player count on Steam dropped from 130,000 to 7,000 shortly after launch, indicating a significant decline in interest [4] - The game faced criticism for being both "pay-to-win" and requiring excessive time investment, leading to a perception of lost engagement among players [5][7] Key Mistakes Identified - The first major mistake was reducing the depth of monetization, which led to players feeling a lack of goals and engagement [5][7] - The second mistake involved uncontrolled gray market activities, which were exacerbated by the game's free-to-play model and multi-platform release, damaging the game's ecosystem [5][6] - The third mistake was the fragmentation of the player base across multiple platforms, which negatively impacted the matchmaking experience [6] Game Design Flaws - The game design failed to provide a satisfying feedback loop for player investment, leading to a sense of disinterest [8][10] - The initial player guidance was inadequate, failing to explain key gameplay mechanics, which contributed to player confusion [8] - The reward mechanisms were poorly structured, particularly in the early stages, discouraging casual players from engaging with the game [10] Industry Context - The company faces significant challenges in the mech and competitive gaming market, which has a naturally limited user base [11] - There is skepticism about whether the company can pivot "解限机" into a successful product without addressing its current issues, particularly in monetization and gameplay content [11]