Core Viewpoint - The gaming industry is undergoing significant scrutiny and internal investigations, highlighted by the corruption case involving a senior manager at Zhongyou Mobile, which has led to a sharp decline in the company's stock price and raised concerns about the performance of its flagship game, "Xianjian World" [1][4]. Group 1: Company Developments - Zhongyou Mobile's internal corruption report revealed that Jiang Haitao, the former general manager of the Man Tian Xing studio, was detained for serious job-related crimes [1]. - "Xianjian World," which had over 300 million yuan invested in its development, initially topped the iOS free chart but quickly fell to 36th place within a weekend, indicating poor market performance [1][2]. - The game received negative feedback from players, citing issues such as severe frame drops and lackluster content design, which did not meet expectations for the "Xianjian" IP [2][3]. - Following the corruption report, Zhongyou Mobile's stock price dropped by 5.56%, with a total market value of 1.528 billion HKD, reflecting a decline of over 30% year-to-date [4]. Group 2: Industry Context - The gaming industry is experiencing a wave of internal purges, with companies like Perfect World and Bilibili also taking action against executives involved in misconduct [6][7]. - The reliance on outsourcing in the gaming sector, where art and special effects outsourcing can account for 30%-50% of total development costs, creates opportunities for management to exploit their authority for personal gain [7][8]. - Zhongyou Mobile is facing its largest loss since its listing, with a net loss of 2.08 billion yuan projected for 2024, prompting the company to accelerate plans for the "Xianjian Qixia Chuan" IP to unlock new commercial potential [5].

Core Viewpoint - The gaming industry is undergoing significant scrutiny and internal investigations, highlighted by the corruption case involving a senior executive at Zhongyou Mobile, which has led to a sharp decline in the company's stock price and financial performance [1][4][5]. Group 1: Company Developments - Zhongyou Mobile's internal corruption report revealed that Jiang Haitao, the former general manager of the Man Tian Xing studio, was detained for serious job-related crimes [1]. - The game "Xian Jian World," developed under Jiang's leadership, initially showed promise but quickly fell in rankings and received poor player reviews, leading to disappointing revenue of only 1.25 million yuan in its first week despite over 300 million yuan invested in development [2][3]. - Following the corruption allegations, Zhongyou Mobile's stock price dropped by 5.56%, with a total market value of 1.528 billion HKD, reflecting a decline of over 30% year-to-date [4]. Group 2: Industry Context - The gaming industry is experiencing a wave of internal purges, with companies like Perfect World and Bilibili also taking action against executives involved in misconduct [6][7]. - The reliance on outsourcing in the gaming sector, where art and special effects outsourcing can account for 30%-50% of total development costs, raises concerns about management's ability to control costs and prevent misuse of power [7].