Vi e w p o i n t | 06 Jan 2026 12:16:59 ET │ 10 pages China Internet China Online Gaming Industry Journal (Dec 2025 Edition) CITI'S TAKE Our Dec 2025 China Online Gaming Industry Journal's notable highlights include 1) read-through from AppMagic 2025 global mobile game revenues and download charts and 2) business highlights from Century Huatong, 37, Perfect World, and Kingnet. With the recent rally of A-share gaming sector in the first week of Jan, our focus stays on monetization potential of next new game ...

Core Viewpoint - Century Huatong has emerged as a significant player in the gaming industry, with its subsidiary, Diandian Interactive, surpassing major competitors like NetEase and miHoYo in global mobile game revenue, primarily due to its unique game offerings and strategic market positioning [1][6]. Group 1: Company Performance - Diandian Interactive distributed approximately 600 million yuan among 27 employees this year, showcasing its financial success [1]. - From June 2023, Diandian Interactive's global mobile game revenue exceeded that of NetEase, securing the second position in the industry, only behind Tencent [1]. - The flagship games, "Whiteout Survival" and "Kingshot," have generated cumulative revenues of over $3.3 billion and $300 million, respectively [5]. Group 2: Market Strategy - Diandian Interactive has focused on niche markets, developing games in less competitive segments, such as survival strategy and shooting card games, which has allowed it to capture player interest without facing intense competition [4][7]. - The company has successfully localized its games to cater to regional player preferences, enhancing user engagement and retention [4][5]. Group 3: Competitive Landscape - The gaming industry is witnessing an influx of competitors attempting to replicate Diandian Interactive's success, particularly in the survival strategy genre, which may increase customer acquisition costs for the company [7][10]. - Major players like Tencent are also entering the same market segments, intensifying competition and potentially impacting Diandian Interactive's market share [10][8]. Group 4: Future Initiatives - Diandian Interactive is actively working on retaining existing players through updates and enhancements to current games, while also exploring new game genres and integrating AI technologies to improve game development efficiency [11][12]. - The company is expanding its workforce, particularly targeting experienced talent from larger firms, indicating a commitment to growth and innovation [12].