Core Viewpoint - Kuaishou Games has been undergoing significant restructuring, including layoffs and resource reallocation, primarily focusing on the adaptation of the game "The Master of the Mysterious" after the underperformance of two self-developed games, "Endless Dream Return" and "Time-Space Run" [1][11]. Group 1: Restructuring and Layoffs - Kuaishou Games' Shanghai Xinghe Studio has started layoffs since the beginning of the year, with projects and personnel moving to Hangzhou, tightening resources for other projects [1][3]. - The layoffs were triggered by the disappointing performance of two self-developed games, leading to a need for Kuaishou Games to operate on a self-sustaining basis [1][4]. - The Shanghai studio, which previously had over 100 employees, lacks a general manager, with all business lines reporting to a base in Hangzhou, indicating a significant contraction in operations [3][10]. Group 2: Game Performance - "Endless Dream Return" has effectively entered a semi-shutdown state, with no updates since April, and its official account on Bilibili has not been updated since June [4][5]. - "Time-Space Run" had a brief presence on the sales charts but quickly fell off, indicating poor market reception [6][11]. - Both games received company-level awards during the previous year but have since faced layoffs and project halts [7]. Group 3: Focus on "The Master of the Mysterious" - Following the shift in focus, Kuaishou Games is now primarily betting on "The Master of the Mysterious," which is the largest investment and scale project since the establishment of the brand [11][15]. - The game is set to be developed using the UE5 engine and aims to enter the MMORPG market, a familiar territory for the core team from NetEase [13][15]. - The anticipated launch for "The Master of the Mysterious" is planned for 2026, marking a significant development timeline of approximately five years [13][15]. Group 4: Industry Context and Future Outlook - The gaming industry is currently experiencing a downturn, prompting many companies, including Kuaishou Games, to adopt more cautious and low-profile strategies [16][18]. - The number of new software copyrights registered by Kuaishou Games has significantly decreased, reflecting a contraction in new project development [16][17]. - The success of "The Master of the Mysterious" is critical for Kuaishou Games to validate its gaming business and determine its future viability in a competitive market [15][18].