Core Insights - Apple's CEO Tim Cook has been visiting Chinese gaming companies, including Lilith Games, Mihayou, and Paper Games, which are collectively referred to as the "Four Little Dragons" of Shanghai gaming [1][4] - The importance of service revenue, including gaming, is increasing for Apple, with service revenue reaching a new high of $27.4 billion, accounting for nearly 30% of total revenue in the latest quarterly report [1][4] Group 1: Tim Cook's Visits - Tim Cook's recent visit to Lilith Games included a mention of their product "Sword and Expedition: Journey," which is set to release in 2024 and has been recognized as the iPhone game of the year by App Store Awards 2024 [2] - Cook's visits to Chinese gaming companies have become a routine, with previous visits to Kuro Game, Paper Games, NetEase, and Mihayou, highlighting Apple's focus on the gaming sector [4] Group 2: Lilith Games Overview - Lilith Games, established in 2013, is known for its mobile games such as "Tiny Legends," "Sword and Home," "Awakening of Nations," and "Sword and Expedition," focusing on SLG and idle RPG genres [3] - The game "Awakening of Nations" set a record for monthly revenue for Chinese strategy mobile games when it was released in 2018, and as of September this year, it ranks 18th in the revenue chart for Chinese mobile games abroad [3] Group 3: Service Revenue Growth - Apple's financial performance for Q3 FY2025 showed total revenue of $94 billion, a 10% year-over-year increase, with service revenue growing by 13% [4] - The growing significance of service revenue, particularly from gaming, reflects a strategic shift for Apple as it diversifies its income sources beyond hardware [1][4]

Core Insights - The incident involving influencer Lan Zhanfei, whose accounts on Douyin and Xiaohongshu were banned from following, raises questions about the impact on partnered gaming products and the implications for related companies [1][3] Group 1: Incident Background - As of September 25, Lan Zhanfei had 24.9 million followers on Douyin and 130,000 on Xiaohongshu [4] - The incident may stem from two factors: his "wealth flaunting" remarks and statements that contradict mainstream trends, such as promoting a lifestyle without marriage [4][6] - Lan Zhanfei's comments about his income led to significant media attention, with his income disclosure trending on Weibo [4][6] Group 2: Impact on Partnered Products - DataEye research indicates that Lan Zhanfei has collaborated with multiple gaming products, including "Flame Awakening," "Dream of the Westward Journey," and "Yuan Guang 84" [7] - Despite the ban, the advertising strategies for these products remained largely unaffected, with "Flame Awakening" continuing to use Lan Zhanfei's materials [11] - Following the ban, "Flame Awakening" and "Dream of the Westward Journey" saw an increase in their rankings on sales charts, indicating a potential boost in visibility and engagement [15][17] Group 3: Implications for Gaming Companies - The incident highlights the need for gaming companies to assess the risks associated with endorsers, suggesting a shift from a focus solely on follower count to a more comprehensive evaluation of public image and compliance [21] - Companies should avoid over-reliance on a single endorser, as demonstrated by the minimal impact on "Dream of the Westward Journey" and "Yuan Guang 84," which did not depend heavily on Lan Zhanfei's materials [22] - Emphasizing product quality and brand integrity is crucial, as the unique outcome of this incident may not be replicable; companies should focus on enhancing gameplay and user experience rather than relying solely on endorsements [23]

Group 1 - The gaming sector continues to experience fluctuations, with the gaming ETF (159869) dropping around 2%, indicating a low-positioning opportunity for investors [1] - Notable performers among holdings include Fuchun Co., Mingchen Health, Huali Technology, and 37 Interactive Entertainment, while companies like Gigabit, Perfect World, Giant Network, and others are seeing significant declines [1] - A boom in domestic shooting games is anticipated from late 2024 to 2025, with Tencent's shooting products showing impressive metrics, such as "Delta Force" achieving 20 million DAU within a year and "Peacekeeper Elite" experiencing over 30% year-on-year growth in average DAU in Q2 2025 [1] Group 2 - The head effect in shooting games is pronounced, with a few products generating substantial revenue, and the "search and destroy" genre gaining popularity due to its immersive experience compared to the "battle royale" format [1] - The gaming sector is undergoing transformations driven by AI, content, and commercialization models, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry, presenting investment opportunities [2]

Core Viewpoint - Lilith Games, known as one of the "Four Little Dragons of Shanghai Gaming," has launched its shooting game "Far Light 84" after a significant investment of 1 billion yuan and 6 years of development, but the game's performance post-launch has been underwhelming, with mixed reviews and a rapid decline in rankings [1][6][10]. Group 1: Game Performance - "Far Light 84" has seen a disappointing performance since its global launch, quickly falling out of the top 200 on iOS and receiving mixed reviews from players, with accusations of copying other games [1][6][10]. - The game peaked at over 40,000 concurrent players during its initial overseas operation but has since dropped to around 5,000 concurrent players post-launch, indicating a significant decline in interest [4][5]. - The game has only achieved an estimated 367,000 downloads and generated approximately $29,000 in revenue since its launch, which is minimal compared to the investment made [6][8]. Group 2: Game Quality and Issues - Players have noted that "Far Light 84" shares high similarities in gameplay with popular titles like "Apex Legends" and "High Energy Heroes," which may have contributed to its lack of originality [3][4]. - The game has been plagued by rampant cheating, with numerous hacks available for purchase on third-party platforms, negatively impacting the player experience [8][10]. - Internal issues during development, including multiple changes in the core team and significant alterations to the game engine, have led to a lack of cohesion and innovation in the final product [10][12]. Group 3: Market Position and Competition - Lilith Games has struggled to compete in the shooting game market, particularly against Tencent's successful titles like "Delta Action," which has surpassed 20 million daily active users [15]. - The company's shift from its strengths in SLG games to the shooting genre has been criticized, as it failed to leverage its existing expertise effectively [12][15]. - Analysts suggest that the game's inconsistent positioning and reliance on trends have resulted in a product that lacks a clear identity and competitive edge in a crowded market [14][15].

Core Insights - The shooting game genre has become the most popular segment at the recent ChinaJoy event, with major companies like Tencent, NetEase, and Lilith attracting large crowds to their game demo areas [1][2] - The summer gaming market remains competitive, with over ten key products scheduled for release in August, including various genres such as MMORPGs and shooting games [2] Game Releases - On August 7, three major games were launched: Perfect World's "Zhu Xian 2," Lilith's "Light of 84," and NetEase's "Spirit Beast Adventure" [3] - "Zhu Xian 2," a new MMORPG developed by Perfect World, has been in development for over four years and is expected to strengthen the company's position in the genre [3] - NetEase's "Spirit Beast Adventure" is a 3D turn-based pet-catching game set in an Eastern mythology world, featuring strategic battles and social gameplay [3] Upcoming Titles - NetEase plans to begin testing "Destiny: Stars" on August 15, with a global launch expected on August 28. This game is a collaboration with Bungie and is based on the popular "Destiny" IP [4] - Lilith's "Light of 84," a shooting game that combines hero shooting and battle royale elements, is set for public testing on August 7 [4] - Tencent's "Valorant: Source Action," a mobile FPS developed in collaboration with Riot Games, is scheduled for release on August 19, with over 60 million pre-registrations [5] Market Dynamics - The shooting game segment is experiencing intense competition, with many companies launching new titles to capitalize on the summer gaming season and the visibility from ChinaJoy [7] - Despite the crowded market, companies are motivated to innovate and break through existing gameplay limitations, as significant rewards await those who achieve quality and gameplay breakthroughs [7]

Core Insights - The 22nd ChinaJoy, themed "Gathering What You Love," attracted 743 exhibitors, showcasing the integration of technology in reshaping entertainment experiences [1][3] Industry Recovery and Atmosphere - The high attendance at ChinaJoy is linked to the recovery of the gaming industry, with the domestic gaming market generating actual sales revenue of 168 billion yuan in the first half of 2025, a year-on-year increase of 14.08% [3][6] - The number of gaming users reached approximately 679 million, marking a 0.72% increase, both figures setting historical highs [3][6] - Esports and mini-program games are significant contributors to this growth, with esports revenue at 80.645 billion yuan, accounting for nearly half of the total gaming market revenue [3][6] - Mini-program games generated 23.276 billion yuan in revenue, with a remarkable year-on-year growth rate of 40.20%, becoming a key growth driver [3][6] Highlights from Exhibitors - Major domestic companies like Tencent, NetEase, and Perfect World showcased multiple esports products, while international firms like Blizzard and Ubisoft presented their esports IPs [3][6] - Century Huatong featured its popular mini-program game "Endless Winter," which has over 54 million monthly active users, in a unique exhibition area [4][6] Single-Player Game Popularity - The actual sales revenue for domestic console games reached 1.034 billion yuan, reflecting a year-on-year increase of 29.78%, driven by titles like "Black Myth: Wukong" [6][10] - The presence of single-player games has notably increased at this year's ChinaJoy, with several high-profile titles receiving dedicated exhibition spaces [10][11] AI Integration in Gaming - ChinaJoy 2025 highlighted the deep integration of AI in gaming, with companies like NetEase showcasing AI interactive experiences and dynamic narrative generation [12][13] - AI NPCs are designed to better understand player intentions and provide real-time responses, enhancing immersion and user experience [13][14] - The event also featured a "Smart Entertainment Robot" area, indicating a growing interest in the intersection of gaming and robotics [14][16]

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]

Core Viewpoint - The summer gaming season of 2025 is set to be unprecedentedly competitive, with over 20 new domestic games scheduled for release in July, highlighting the industry's peak period due to increased user engagement during student vacations [2][11]. Group 1: Market Dynamics - The summer season is traditionally a golden period for the gaming industry, with significant competition expected as major players like Tencent and NetEase launch products around the same time [2][4]. - The global gaming market also experiences a peak during this period, with Chinese game developers focusing on key products for overseas markets, particularly in Asia [2][9]. Group 2: Major Releases and Strategies - Tencent's strategy includes a dual approach with the launch of "Carbon Island" on July 2, which integrates low-carbon concepts into gameplay, and "Star Resonance" on July 17, a major title in the anime genre [5][6]. - NetEase is heavily investing in PC and overseas markets, with the release of "Uncharted Star Abyss" on July 17, developed by a studio founded by Blizzard's co-founder [5][6]. - The direct competition between NetEase's "Uncharted Star Abyss" and Tencent's "Star Resonance" on the same day is anticipated to be a significant highlight of the July gaming market [6]. Group 3: Trends in Game Development - The new game lineup for July reflects two major industry trends: the continued focus on core categories by major companies and a notable recovery in the PC gaming market [9][10]. - The revival of the PC gaming market is attributed to factors such as the normalization of game licensing, the recovery of internet cafes, and the increase in cross-platform games [2][9]. - The emergence of several new PC titles indicates a shift towards differentiated product offerings, as companies seek to provide stronger gaming experiences compared to the saturated mobile gaming market [9][10]. Group 4: Competitive Landscape - The competition among major gaming companies is expected to intensify as they launch multiple products, leading to increased marketing efforts and potential user acquisition challenges [8][9]. - The upcoming releases from both large and small developers aim to capture user attention through innovative gameplay, technological upgrades, and thematic breakthroughs [11].

Core Viewpoint - The gaming industry is experiencing a surge in new game releases during the summer of 2025, driven by the availability of university students and major events like ChinaJoy, which encourages companies to showcase their new titles [3][5]. Game Releases - In June, 20 new games were launched in China, with July seeing over 20 additional titles set to release, including Tencent's "Star Resonance" and NetEase's "Unowned Star Abyss" [4][6]. - Notable games include "Limitless Machine" by Xishanju and "Carbon Island" by Tencent, both released on July 2, marking the start of the summer gaming season [4]. Market Dynamics - The gaming stock market has shown volatility, with significant gains on July 8, as companies like Iceberg Network and Giant Network saw increases of over 10% and 5% respectively [3][8]. - The approval of 757 game licenses in the first half of the year, including a record 158 in June, indicates a stable trend in the gaming industry [8]. Nostalgia and Updates - Established games are also seeing updates and new versions, such as the nostalgic version of "Fantasy Westward Journey," which has attracted significant player interest, leading to server congestion [6][7]. - The strategy of updating older games helps maintain player engagement and ensures stable revenue for gaming companies [7]. Policy Support - Various local governments have introduced supportive policies for the gaming industry, focusing on promoting game exports and integrating AI technology [8]. - The trend of regular game license approvals is expected to continue, fostering a more robust gaming environment [8]. Industry Trends - The gaming industry is witnessing a diversification of genres, with companies exploring new gameplay mechanics and AI integration [9]. - The emergence of party games like "Goose Duck" is expected to intensify competition among major players like NetEase and Tencent [9].

Group 1 - Lilith Games' self-developed shooting game "Far Light 84" is scheduled for a July test, which will be available on both PC and mobile platforms, potentially attracting market attention towards the "gaming + AI + esports" concept [1] - NetEase's turn-based pet-catching mobile game "Spirit Beast Adventure" will begin testing on June 19, featuring a unique blend of "vertical screen + pet-catching + home management" gameplay, targeting casual players and aiming for rapid annual revenue growth if a stable user base is formed [2] - Sunborn Network's "Girls' Frontline" issued an apology for server issues experienced after its June 12 launch, attributing the problems to an underestimation of server capacity, which may weaken market confidence in its future products [3]