Core Viewpoint - The Shanghai Municipal Government has introduced measures to promote the high-quality development of the software and information services industry, particularly focusing on attracting foreign game companies to establish R&D teams in Shanghai by treating their products as domestic games for licensing purposes [1][3]. Group 1: Policy Measures - The measures aim to invigorate the operational vitality of software and information service enterprises, support AI-driven upgrades, cultivate new growth drivers, and reduce costs for companies in the sector [1]. - A notable aspect is the pilot policy allowing foreign game companies' products developed in Shanghai to be treated as domestic games, which is expected to enhance their chances of obtaining game licenses [1][6]. Group 2: Market Context - Shanghai is a preferred entry point for foreign game companies due to its status as a highland of openness in China, with many well-known firms like Ubisoft and Blizzard establishing their Chinese headquarters there [3]. - Despite having many foreign company headquarters, Shanghai has struggled to attract direct game development due to operational qualifications and licensing restrictions, limiting its industry scale [3][4]. Group 3: Competitive Landscape - The competition among cities for the game industry is intense, and Shanghai's ability to convert foreign company headquarters into substantial investments and a robust industry ecosystem is crucial [3][4]. - Local game companies in Shanghai, while established, lack the scale and experience compared to giants like Tencent and NetEase, making it essential for Shanghai to offer more attractive pathways for foreign collaboration [4]. Group 4: Licensing and Regulatory Challenges - The likelihood of foreign game companies obtaining domestic game licenses is significantly higher, with 1,306 domestic game licenses issued in 2024 compared to only 110 for imported games [6]. - However, obtaining a license still requires compliance with additional regulations, such as APP filing and possessing an ICP license, which presents further challenges for foreign companies [7]. Group 5: Future Implications - The pilot policy is seen as timely, as many foreign companies are looking to cut costs and may find it advantageous to establish R&D teams in Shanghai, leveraging local talent and reducing communication barriers [5]. - The actual impact of these measures on foreign game companies will depend on subsequent policies and their integration with existing regulatory frameworks [7].

Core Insights - The article highlights the rapid growth and global success of Chinese mobile games, with 33 Chinese companies making it to the top 100 global mobile game publishers, generating $2 billion in revenue, accounting for 38.4% of the total [3] - Chinese mobile games have seen a significant increase in overseas revenue, reaching $18.56 billion in 2024, with a year-on-year growth rate of 13.39% [3][5] - The shift in strategy from domestic-focused development to global-first design has been crucial for the success of Chinese games in international markets [5][6] Industry Growth - The mobile gaming sector has become a dominant force for Chinese games, with approximately 25% of the top 50 global mobile publishers being Chinese [3] - The revenue from Chinese games in overseas markets has grown from less than $1 million to over $100 billion in five years, with a consistent annual growth rate exceeding 10% [4][5] Strategic Shifts - Companies have transitioned from primarily exporting game copyrights to designing games with global releases in mind from the outset [5][6] - Successful titles like "Black Myth: Wukong" and "Genshin Impact" were developed with global audiences in mind, featuring multi-language support from launch [5][6] Market Understanding - Chinese game developers have deepened their understanding of overseas markets, tailoring content to local preferences and cultural contexts [6][7] - Different strategies are employed for various regions, with IP collaborations being more effective in Japan and Korea compared to Western markets [7] Technological Advancements - Chinese game developers have surpassed their international counterparts in mobile game development efficiency and technology application [9][16] - The use of advanced game engines and AI technology has contributed to the leading position of Chinese mobile games [16] Marketing and Promotion - Chinese companies have leveraged social media and targeted marketing strategies to enhance visibility and user acquisition in international markets [17][19] - The integration of local cultural elements into games has been positively received, enhancing the appeal of Chinese games abroad [21] Cultural Impact - The success of Chinese games abroad reflects the broader trend of Chinese cultural products gaining international recognition, with a significant increase in cultural exports [22][23] - The gaming industry's growth is indicative of China's rising global influence and competitiveness in various sectors [23]