Core Insights - The revenue of the two-dimensional mobile game market in the first half of 2025 was 14.577 billion yuan, showing a year-on-year decline of 8% [1] - The second half of 2025 saw a surge in new game releases, particularly after October, with various genres including action-adventure and card strategy being represented [3] Market Performance - The overall performance of the two-dimensional mobile game market in the second half of 2025 showed a shift from low activity to increased vibrancy, with overseas markets becoming a key growth engine [25][26] - Notable new releases such as "Dragon Soul Traveler," "Silver and Scarlet," and "Ise" contributed to a recovery in market revenue, with "Silver and Scarlet" achieving over 400 million yuan in dual-end revenue in June [25][26] Game Releases and Performance - "Dragon Soul Traveler" launched on June 6, 2025, achieving a peak single-day download of 113,674 and total revenue of approximately 2.79 million USD by July 15 [5] - "Silver and Scarlet" launched on June 26, 2025, quickly rising to the second position on the iOS free chart and achieving a peak single-day download of 112,575 [6][7] - "Star Resonance," promoted by Tencent, faced significant server issues upon launch, leading to a rapid decline in its market performance despite initial high expectations [8][9] Revenue Trends - "Ise" achieved over 11 million USD in its first month overseas, ranking 22nd in the overseas mobile game revenue list [10] - "Star Traveler" generated approximately 2.8 million in total revenue within five days of its launch, with Japan contributing significantly to its earnings [13][26] Regional Insights - The majority of revenue for new games came from Japan, South Korea, and Taiwan, highlighting the importance of these markets for two-dimensional mobile games [26] - Localization efforts, such as multilingual preparations for "Silver and Scarlet," have been crucial for success in overseas markets [26] Future Considerations - Upcoming IP adaptations like "Black Clover: Magic Emperor's Path" and "Bleach: Boundary Blade" are anticipated to perform well, but their success will depend on their ability to innovate beyond traditional gameplay [26]

Group 1 - ByteDance's gaming division, Chaoxi Guangnian, has not shut down its Shanghai studio, nor is there a project named "Project: Babel" [1] - Recent rumors suggested a layoff of approximately 300 employees (40% of the department) due to unmet project progress expectations, with a compensation plan of N+2 [1] - The Shanghai gaming development operations primarily rely on Mutong Technology and ZERO36 studio, with ZERO36 known for titles like "One Piece: Burning Blood" and "Hatsune Miku: Colorful Stage" [2] Group 2 - Mutong is working on an ARPG competitive project and a PC action game, along with two card game projects under the codenames "Card-Z" and "Card-W" [2] - ZERO36 is developing a CCG card game based on a space battle IP and is actively recruiting for various positions, including CCG card system planners and casual game planners [2][3][4][5][6][7] - The studio has previously hired Lu Jiaxian, the founder of Muqi Qi, who had announced layoffs in 2022 [2]

Core Insights - The game "Brown Dust 2" has gained significant attention in China, particularly after its presence at the BW exhibition, despite its average revenue performance in South Korea [1][5] - The game has seen a remarkable increase in daily active users, reaching a historical high of 280,000 during its two-year anniversary event, and topping sales charts in Taiwan and Hong Kong [2][4] - The game's unique business model, which allows players to draw costumes that are tied to skills rather than characters, has contributed to its resurgence [4][6] Revenue and Performance - Since its overseas launch in 2023, "Brown Dust 2" has not performed exceptionally well in terms of revenue, often hovering around the top 100 in South Korea's sales rankings [2] - The game has maintained a growing level of attention over the past two years, which is atypical for a sequel that initially struggled to build a player base [2][4] Marketing and User Engagement - The marketing strategy for "Brown Dust 2" has been aggressive, with significant promotional efforts even when the game was outside the top sales rankings, indicating a strong commitment from the developer Neowiz [6][8] - The development team has actively sought feedback from players to improve game quality and user experience, which has led to a more engaged community [19][23] Game Design and Features - The game emphasizes character depth and storytelling, allowing players to collect all characters while focusing on acquiring costumes that enhance gameplay [6][20] - The design team prioritizes aesthetic appeal in character design, with a shift in player interest towards visual attractiveness over numerical strength [24] Future Plans and Market Potential - The development team is exploring the possibility of launching the game in China, acknowledging the need for content modifications to meet local regulations [16] - There is a recognition of the potential in the Chinese market, with a significant portion of revenue coming from Chinese players, estimated at 10%-15% of overall income [22] Community and Cultural Insights - The team has noted differences in player preferences between regions, with Chinese players showing a strong interest in community interaction and feedback [29] - The success of "Brown Dust 2" is attributed to a collaborative relationship with its user base, emphasizing the importance of player support in the game's development [35][36]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected increase of over 10% relative to the market index in the next six months [4][26]. Core Insights - In June 2025, six key mobile games were launched, with "Silver and Crimson" and "Dragon Soul Traveler" standing out in performance [1][10]. - "Silver and Crimson" achieved significant success due to its unique art style, user-friendly design, and global release strategy, reaching a peak download of 112,575 on June 28 and generating total revenue of $1,689,405 by July 15 [2][17]. - "Dragon Soul Traveler" features a Japanese light comedy style and has shown strong performance with a total revenue of $2,792,902 by July 15, despite being launched later than "Silver and Crimson" [3][20]. Summary by Sections New Game Releases - Six new mobile games were launched in June 2025, including titles from various publishers such as "Bubble Bubble" by Eagle Horn Network and "Final Fantasy 14: Crystal World" by Tencent [1][10]. Game Performance - "Silver and Crimson" has a unique dark gothic aesthetic and a strategy card RPG format, achieving a high user retention rate and ranking first in the App Store free charts in multiple regions [2][13]. - "Dragon Soul Traveler" employs a fragmented narrative and innovative gameplay, achieving a peak download of 113,674 on June 7 [3][22]. Investment Recommendations - The report suggests that the gaming license issuance will remain stable, and the market environment is expected to stabilize, making new game performances promising. It recommends focusing on quality game developers with innovative capabilities [24].

Core Viewpoint - The summer gaming season of 2025 is expected to see a variety of new game releases, with notable titles from companies like Tencent, NetEase, and others, despite fewer high-profile launches compared to previous years [1]. Game Releases Overview - **Eagle Horn Network** is set to launch its first buyout multiplayer console game "Pao Mu Pao Mu" on June 2 [2]. - **NetEase** will release "Frostpunk: Last Home" on June 5, a mobile adaptation of the original game [9]. - **Tencent** has multiple titles lined up, including "Final Fantasy XIV: Crystal World" on June 19 and "Dragon Stone War" on June 26 [6][3]. - **Lingze Technology** is launching "Mingmo: Yuanshu Yu" on July 24, a soul-like action game [12]. - **Lilith Games** is expected to release "Far Light 84," a tactical shooting game, during the summer [14]. Notable Game Features - "Dragon Stone War" features 20 types of units and a unique battle interaction system, aiming to innovate within the SLG genre [3]. - "Final Fantasy XIV: Crystal World" introduces new gameplay features and a different monetization strategy compared to its original version [6]. - "Star Resonance," developed by Shanghai Baokela, is a two-dimensional MMORPG expected to launch in August, featuring multi-platform compatibility [7]. - "Frostpunk: Last Home" has adjusted its gameplay for mobile, offering both hardcore and casual modes [10]. Market Context - The summer gaming market is competitive, with several companies like Tencent and NetEase launching new titles, indicating a strategic push to capture player interest [1][27]. - The gaming industry is seeing a trend towards innovative gameplay mechanics and monetization strategies, as evidenced by the upcoming releases [6][10].