Core Insights - The article highlights the significant presence of Chinese anime games at TGS 2025, indicating a potential boom in the industry for 2026 with major titles like "Infinite," "Eternal Ring," and "Blue Star: Journey" set to launch [1][16] - The closure of the GiGO 1 building, previously a prominent advertising space for miHoYo, marks a shift in the landscape of the Akihabara area, contrasting sharply with the past dominance of "Genshin Impact" [1][29] - Despite the visible decline of miHoYo's advertising presence, its products remain popular in local stores, suggesting a change in strategy rather than a complete withdrawal from the market [6][11] Industry Dynamics - The surrounding business of merchandise, or "Gaozi economy," is increasingly seen as a marketing tool rather than a primary revenue source for game developers, with companies focusing more on enhancing user engagement [9][31] - MiHoYo's recent strategy reflects a shift towards cost-effective marketing, as evidenced by its absence from TGS this year, contrasting with its previous aggressive promotional tactics [11][15] - The rise of new Chinese titles at TGS indicates a growing recognition among Japanese players of these products, suggesting a shift in market dynamics and consumer preferences [13][16] Market Trends - The article notes a distinct difference in the types of games showcased at TGS compared to those in Akihabara, with a focus on new Chinese titles that are actively engaging players through innovative marketing strategies [16][22] - The upcoming release of several high-profile Chinese games is expected to revitalize the Akihabara area, which has seen a decline in its anime culture prominence [29][36] - The competitive landscape for 2024 is anticipated to be intense, with over ten major titles expected to launch, challenging the current market structure and consumer engagement strategies [38][39]

Core Insights - The 2025 Cologne International Game Show will take place in Cologne, Germany, from August 20 to 24, and is recognized as Europe's largest and most authoritative interactive entertainment exhibition, focusing on game hardware, software, technology, and related content [1][3] Group 1: Exhibition Overview - The event attracted 1,500 exhibitors from 72 countries and regions, marking an 11% increase from the previous year, setting a historical record for the Cologne International Game Show [4] - The exhibition area reached a record 233,000 square meters, featuring various segments including interactive gaming experiences, cosplay performances, independent games, card games, artist zones, and merchandise sales [9] Group 2: Chinese Participation - Over 50 Chinese exhibitors participated, a 32% increase from last year, showcasing new titles such as Tencent's "Honor of Kings World," "Delta Action," and "Crossfire: Rainbow" [13] - The presence of Chinese games in Europe has significantly increased, with Germany being the largest game market in Europe, housing approximately 37.5 million gamers [17] Group 3: Awards and Recognitions - The mobile game "Love and Deep Space" by Paper Games won the Best Mobile Game award, becoming the first female-oriented game to achieve this honor at the Cologne Game Show [19] - Other notable nominations included "Genshin Impact" and "Tomorrow's Ark" for Best Mobile Game, and "Shadow Blade Zero" for Best Sound Effects [24][26] Group 4: Major Game Releases and Innovations - Tencent's TiMi Studio Group showcased several titles, including "Delta Action," which announced cross-platform support for PC, mobile, and console [26] - The new game "Black Myth: Zhong Kui" was unexpectedly revealed, focusing on a new hero and gameplay, although its release is projected to be three years away [29] Group 5: Japanese Dominance - Japanese companies excelled at the event, with Capcom winning multiple awards for "Resident Evil 9: Requiem," including Best Visual Effects and Best PlayStation Game [42] - Nintendo also received accolades for innovative gameplay with "Donkey Kong: Banana Power" and topped the Switch 2 sales chart with "Mario Kart: World" [46]

Group 1 - The Gamescom 2023, the largest gaming exhibition globally, opened in Cologne, Germany, with over 1,500 exhibitors from 72 countries, marking an 11% increase from last year [1] - More than 50 Chinese companies participated, including Tencent, MiHoYo, and others, representing a 32% increase in participation compared to the previous year [1] - The event featured the debut of the game "Black Myth: Wukong," which received enthusiastic applause during the Opening Night Live [1] Group 2 - Chinese companies, led by Tencent, have become key players at the Gamescom, with numerous booths attracting international gamers [2] - Tencent's VISVISE, an AI-driven creative solution for game art production, was globally unveiled at the event, covering various aspects of game development [2] - The presence of Chinese gaming companies is increasingly significant in the global gaming industry, contributing to industry advancements and becoming essential participants [2]

Investment Rating - The report maintains a "Buy" rating for Tencent, NetEase, and Bilibili, with target price adjustments reflecting positive growth expectations [5][12]. Core Insights - The Chinese gaming market experienced strong growth in the first half of 2025, driven by new products, AI integration, and refined operations, with Tencent, NetEase, and Bilibili outperforming their peers [1][36]. - The report anticipates continued revenue growth for Tencent, NetEase, and Bilibili in Q2 2025, with expected year-on-year increases of 15%, 17.7%, and 60% in gaming revenue respectively [2][3][4]. - AI applications are becoming increasingly prevalent in the gaming industry, with approximately 60% of game companies utilizing AI to enhance content production efficiency by 30%-50% [1][39]. Summary by Company Tencent - Expected Q2 2025 total revenue growth of 11%, with gaming revenue up 15% and advertising revenue up 19% [2]. - Key game reserves include "Honor of Kings World," "Valorant: Source Action," and "Fate Trigger," with a target price raised to 670 HKD, corresponding to a 23/20 times P/E ratio for FY25/26 [2][47]. NetEase - Anticipated Q2 2025 revenue growth of 12.6%, with gaming revenue expected to rise by 17.7%, primarily driven by strong growth in PC games [3]. - Target price adjusted to 166 USD, reflecting an 18.2/17.1 times P/E ratio for FY25/26 [3][47]. Bilibili - Projected Q2 2025 revenue growth of 20%, with gaming revenue expected to increase by 60% [4]. - Target price increased to 28 USD, corresponding to a 38/26 times P/E ratio for FY25/26 [4][47]. Industry Trends - The Chinese gaming market saw a 17% year-on-year growth in the first five months of 2025, with mobile games growing by 20% [1][36]. - Policy support for high-quality game development has intensified, with 991 game licenses approved in 2025, up from 857 in the previous year [1][36]. - The average operational lifespan of top 100 games in China has increased, indicating a shift towards long-term game management strategies [1][36].

Group 1 - The core viewpoint is that the approval of game licenses is stable, with 118 domestic licenses and 9 import licenses issued in April, indicating a positive trend for the gaming industry [1][2] - The report highlights that major companies like NetEase, Tencent, Perfect World, and Kaiying Network have received approvals for their products, with a significant number of mobile games included in the latest batch [2] - The government is actively supporting the gaming industry, particularly in terms of product development and international expansion, as evidenced by recent policy announcements [3] Group 2 - The April batch of domestic game licenses includes 110 mobile games, with a focus on casual and puzzle genres, reflecting the industry's shift towards mobile gaming [2] - The recent government policies aim to eliminate foreign investment restrictions in telecom services and digital industries, which will facilitate the expansion of gaming companies into international markets [3] - The government's encouragement for financing actions in the network publishing sector is expected to boost innovation and development within the gaming industry [3]