Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Chinese online gaming industry, highlighting three emerging trends: growth in PC gaming, the rise of shooting games, and the performance of major titles with high daily active users (DAU) [1][2][3]. Key Trends 1. PC Gaming Growth - The Chinese PC gaming market has shown solid growth, driven by successful cross-platform titles like Delta Force and Wukong. The growth rate for PC games was 5% year-over-year (YoY) in the first half of 2025 [5]. - Payment top-up channels, particularly proprietary platforms like QQ and Weixin, have gained traction, accounting for 40%-50% of total mobile game grossing [2][29]. 2. Rise of Shooting Games - Shooting games represent 30% of global lifetime grossing on the PC platform STEAM, but only 15% of China's mobile game grossing in the first half of 2025 [3][12]. - The genre is expected to grow due to new gameplay formats like extraction shooters, with Tencent positioned as a key beneficiary [3][21]. 3. Performance of High DAU Titles - Major titles such as Honor of Kings (HoK) and Where Winds Meet (WWM) are expected to outperform due to a light pipeline in the second half of 2025 [4]. - Smaller studios are also gaining traction with innovative titles like Whiteout Survival and Supernatural Operations [4]. Market Performance - The overall Chinese PC/mobile game market grew 5% and 17% YoY respectively in the first half of 2025, compared to 3% and 5% in 2024 [5]. - Tencent and Bilibili gained market share in the iOS mobile game market in 1H25, but faced challenges in July due to a high base effect [5][48]. Stock Recommendations - The report maintains a Buy rating on Tencent, NetEase, and Bilibili, citing their strong capabilities in developing new hits and rejuvenating existing titles [6][9]. - Key upcoming titles include Tencent's Valorant Mobile and HoK World, and NetEase's Ananta and Sea of Remnants [6][25]. Additional Insights - The report notes that traditional app stores still provide better reach to new users, and any reduction in fees by these stores could impact gaming companies' incentives to diversify their top-up channels [2]. - The rise of cross-platform games is highlighted, with successful examples including Genshin Impact and Where Winds Meet, which cater to a global audience [31]. Conclusion - The Chinese online gaming industry is poised for continued growth, particularly in the PC segment and shooting game genre, with major players like Tencent and NetEase expected to capitalize on these trends. The focus on innovative gameplay and cross-platform capabilities will be crucial for maintaining competitive advantages in this rapidly evolving market [1][2][3][4][5][6].
中国网络游戏:三大趋势-PC 端增长、射击类游戏、大赢家-China online games_ Three trends_ PC growth, shooting genre, big winners