Gamma data: China's game industry's need to develop new levels of productivity continues to rise

The Zhitong Finance App learned that recently, Gamma Data released the “China Game Industry New Quality Productivity Development Report 2025”. The report points out that the need for the Chinese game industry to develop new quality productivity continues to increase. Therefore, starting with the background and development path of the development of new quality productivity in the Chinese game industry, the report focuses on analyzing the industrial layout areas and product application directions of new quality productivity in the game industry, and introduces examples of representative game companies developing new quality productivity.

The report's research shows:

The game market grew by less than 30 billion yuan from 2021 to 2024, and new quality productivity is needed to enable endogenous development

The average operating time of the TOP100 games is 7 years, and the overall vitality of new products needs to be improved

Leading companies have invested more than 100 billion yuan in R&D, and the need to reduce costs and increase efficiency is remarkable

Artificial intelligence, engine development, and XR technology have become the main areas for enterprises to increase their technical layout

Among the new head tours, there were technical highlights, and the number of new products accounted for 40%, and the proportion of traffic reached 52.5%

Multi-platform technology, engine technology, AI technology, and cloud gaming technology have become key layout directions for new quality productivity

The reserves of top technical talents such as AI and game engines are insufficient, and cultivating talents has become a difficult point in developing new quality productivity

Background of the development of new quality productivity in the game industry

The game industry undertakes the mission of cultural exchange and scientific and technological innovation, and new quality productivity ushered in a new stage of development

Currently, the significance and path of the development of the Chinese game industry has changed. Combining the dual missions of cultural exchange and technological innovation, new quality productivity has become the key to the next stage of development of the game industry. Local game industry policies encourage a layout around the key elements of new quality productivity and strengthen scientific and technological innovation capabilities. New quality productivity in the game industry has ushered in a new stage of development at the policy level.

The industry needs to store energy for the next stage of growth, and the development of new quality productivity is expected to drive growth

In recent years, the size of the Chinese game market has been growing steadily, but the game market increased by less than 30 billion yuan from 2021 to 2024. At this stage, there is no external impetus to continue to drive the sharp growth of the industry, and the next stage of development requires saving new momentum. Therefore, the importance of endogenous development is further highlighted. In the future, it is necessary to focus on product innovation, multi-terminal boutique development, R&D efficiency improvement, and global expansion. New quality productivity will play an effective role in related fields.

Data Source: Gamma Data (CNG)

New productivity in the game industry pushes product innovation to break through the solidification of the product pattern

Currently, the leading product pattern in the Chinese game market is gradually solidifying. In 2024, the average operating time of the TOP100 game products has reached 7 years, and the overall vitality of the new products needs to be improved.

Data Source: Gamma Data (CNG)

Focusing on the mobile game market, although the share of new product sales remained high for two consecutive years in 2023 and 2024, the share of new product sales in TOP100 products in the first half of 2025 was only 5.2%, and new product performance was under pressure throughout the year. In the context of a market with highly mature gameplay types, it is necessary to rely on technological development to drive continuous breakthroughs in product quality and gameplay innovation, emphasize the differentiated characteristics of new products, and thus drive the growth of the game market.

Data Source: Gamma Data (CNG)

New productivity in the game industry promotes boutique expansion and strengthens supply in boutique fields such as consoles and multiple platforms

Promoting technological upgrading is an important value for the development of new quality productivity in the game industry, and it is also the foundation for achieving the goal of high-quality industrial development. Breakthroughs in core technology (such as engine technology, cloud gaming technology, etc.) in the game industry also mean that the Chinese game industry has the ability to expand into more fields such as consoles and multiple platforms, and related fields are an important source of quality supply for the game industry. At this stage, China's game industry's boutique development strategy has begun to bear fruit. Under the trend of normalizing version distribution, the supply of quality products is stable, and multiple product platforms continue to develop. In the future, with the further development of technology, it is expected to promote boutique expansion in more fields.

Data Source: Gamma Data (CNG)

Data Source: Gamma Data (CNG)

New productivity in the game industry empowers R&D efficiency and increases the input-output ratio of enterprises on the R&D side

In recent years, the operating cost pressure on Chinese game companies has continued to rise, and the R&D investment of major listed game companies has stabilized at over 100 billion yuan. Enterprises have taken corresponding measures to reduce costs and increase efficiency, but the fundamental problems have not been solved. At the same time, increased product competition has also caused the content of R&D work to continue to increase. Therefore, in the context of a reduction in personnel and an increase in content output, it is necessary to further develop new quality productivity to promote R&D efficiency with the help of technology, thereby increasing the input-output ratio of enterprises.

Data Source: Gamma Data (CNG)

Data Source: Gamma Data (CNG)

New productivity in the game industry helps global expansion and explore new break-through growth points

Overseas market revenue for games developed independently by China has remained relatively stable overall in recent years, but there is no momentum for further rapid growth. However, as a segment where China has an advantage in the world, the overall share of mobile games is already at a high level. If the Chinese game industry wants to continue to develop globally, it must break the game and find new growth points. The development of new quality productivity will effectively promote the advancement of R&D capabilities and establish product advantages for the global expansion of the Chinese game industry. At the same time, as product quality improves, Chinese game companies are also expected to continue to make efforts in important global segments such as consoles, stand-alone consoles, and clients.

Data Source: Gamma Data (CNG)

Data Source: Gamma Data (CNG)

The state of the game industry's new-quality productivity layout

Industrial layout: Accelerate technological innovation and drive market competitiveness through technological progress

Compared to 2024, artificial intelligence, engine development, and XR technology have become the main areas for enterprises to increase their technical layout. Artificial intelligence technology has penetrated deep into key aspects such as game design and development, user behavior analysis, and operation strategy optimization, which has significantly improved work efficiency and has been widely recognized. Game engines are the core technical field of the game industry. Companies continue to strengthen their technical strength through various methods such as independent research and development, third-party cooperation, and customized improvements to open source frameworks. At the same time, enterprises actively introduce cutting-edge engine technology and accumulate technical experience in engine use. In terms of interactive experience innovation, XR technology is driving game companies to explore more diverse forms of content and interaction methods. Overall, game companies are building and consolidating competitive advantages in the market by systematically improving production efficiency and product service quality through continuous investment in technology.

Data Source: Gamma Data (CNG)

* Note: 1. The TOP50 game companies are the top 50 game companies with game revenue in 2024, as shown below.

2. The corporate layout is the layout publicly disclosed or reported to the outside world, as below.

Industrial layout: AIGC accelerates penetration into the multi-path layout of enterprises and embraces technological change

The game industry has become an important field for the implementation of AIGC technology. Judging from the layout trends of the TOP50 game companies, the application of AIGC is rapidly penetrating into all parts of the industry. As AI technology continues to break through, more and more companies are adopting AI-driven virtual content production solutions to improve the creative efficiency of art resources and game content. At the same time, the number of self-developed AI model companies has increased markedly, reflecting the importance the industry attaches to mastering core AI technology. Some companies, on the other hand, choose to develop customized AI models suitable for the enterprise itself by connecting to large third-party models such as DeepSeek, to quickly improve AI application capabilities. This series of layout changes not only reflects the game industry's deep recognition of AIGC's value, but also shows the company's strategic choice to actively embrace technological change.

Data Source: Gamma Data (CNG)

Product application: Xinyu strengthens the integration of important technologies and uses multi-dimensional innovation to reshape the game product experience

Gamma data is based on industry observations and findings that game companies have applied important new technologies more frequently in new products in recent years, and technological progress is driving comprehensive innovation in the game experience. The report selected the top 50 most popular tours in the past five years as research subjects. It was found that 40% of the new products had significant technological progress and innovation, and related products accounted for 52.5% of the sales volume. The integrated application of engines, AI, multi-platform and cloud technology is driving the development of game products in the direction of higher quality and richer dimensions.

Data Source: Gamma Data (CNG)

Data Source: Gamma Data (CNG)

* Note: 1. The top 50 games released in 2020-2024 refer to game products that have been launched during this time period and have entered the TOP50 for a total of five years. The new games mentioned in this section are all based on this concept.

2. The layout of important technical fields refers to the technical layout of products that focus on investment or innovation on the R&D side. The simple use of relevant technology is not included in the layout category, as follows.

Product application: The market size of multi-platform technology products exceeds 100 billion yuan, breaking the wall and expanding the market across terminals to increase efficiency

According to gamma data monitoring, the overall market size of multi-platform technology products has exceeded 100 billion yuan. Among the TOP50 new products, 7 products are deeply deployed with multi-platform technology, accounting for about 30% of the turnover. The application of multi-platform technology has become an important trend in the global game industry. The rise of this trend has benefited from the successful practice of multi-terminal data exchange models. By breaking down platform barriers, game companies can cover user groups with different preferences such as mobile games, PCs, consoles, etc., and at the same time allow users to freely switch devices, significantly improving user stickiness and online time. Multi-platform technology has become the core gripper for leading manufacturers to build competitive barriers. Its essence is to achieve a dual transition between user experience and commercial value through technological inclusiveness.

Data Source: Gamma Data (CNG)

Product application: Engine technology becomes the core competitiveness of products to accelerate the process of refinement in the Chinese game industry

Among the TOP50 new products, the number of new products with major innovations and mature applications in engine technology is 8, accounting for about 20% of the flow rate. At this stage, the engines used by domestic and foreign game companies are mainly Unity and Unreal Engine (UE). For example, the beautiful graphics of “Black Myths: Goku” have benefited from the latest UE5 engine technical support. Some companies independently develop game engines or deeply customize and modify existing mature engines according to their own product development needs. For example, NetEase's self-developed Blazing Night engine gave the “Against the Cold” mobile game console level graphics performance. It is foreseeable that with the continuous refinement and improvement of China's game engine technology research and application capabilities, the pace of the Chinese game industry towards refinement will further accelerate.

Data Source: Gamma Data (CNG)

Product application: Cloud gaming breaks hardware limitations and becomes the key to attracting users, but only 5 new products have major innovations

Among the top 50 new products in the pipeline, there are 5 products with major innovations in cloud technology, accounting for more than 30% of the products sold. The core advantage of cloud gaming is that it can break through traditional game hardware limitations, solve download and installation problems, eliminate high hardware costs for users, and provide a convenient “click and play” experience. However, it should be noted that although many products have been deployed in the field of cloud gaming, there have been no major breakthroughs in cloud technology, resulting in poor user experience, and only a few products have achieved real technological innovation. On a practical level, Miha Tour, as a mature designer in the field of cloud gaming, achieved the excellent results of the cloud game version breaking into the top ten best sellers with the “Genshin” and “Collapse: Stardom Railroad” games. It has also fully verified the huge potential of the cloud gaming market, and its technical investment also requires focused attention.

Data Source: Gamma Data (CNG)

Product application: AI technology empowers the game industry in multiple dimensions to simultaneously improve development efficiency and in-game quality

Among the top 50 new products, the number of products focusing on AI technology reached 8, accounting for less than 20% of sales, mainly due to the short time for large-scale application of AI technology in the gaming field. However, AI technology has played a significant role in driving game product innovation. Currently, many games have actively incorporated AI technology into it and achieved remarkable results. Examples include “Egg Boy Party” and “Three Kingdoms: Determining the World,” but there are still a few games that deeply introduce AI content. This may be related to the difficulty of implementing technology and the compatibility of AI with game content. However, the continued impact of AI on the game industry is not limited to R&D, but continues to expand in various fields such as interactive gameplay and UGC content.

Data Source: Gamma Data (CNG)

New productivity development practices for game companies

A representative enterprise with new quality productivity

At the level of development of new quality productivity, more and more game companies have developed substantial layouts and achieved outstanding results. For example, the results of reducing costs and increasing efficiency on the R&D side are becoming more prominent, linkages between diverse businesses continue to be strengthened, and better solutions are provided for the digital transformation of other industries. In the process of developing new productivity in the game industry, the innovative ideas of some enterprises are worth in-depth observation and learning.

Century Huatong

Exploring the deeper integration of “game+AI” to promote breakthroughs and development in cutting-edge technology

Century Huatong takes technology as the foundation for development and has multiple locations in PC games, mobile games, console games, cloud games, and cutting-edge technology applications such as AI, VR, AR, and MR. After years of accumulation, Century Huatong has built a solid R&D system and deep technical reserves. In particular, it has formed a unique competitive advantage and R&D foundation in core technologies such as independent engine development and commercial engine application. In recent years, Century Huatong has continued to focus on new quality productivity layout and achieved phased results. In terms of artificial intelligence, Century Huatong has fully integrated AI technology into the entire game R&D and operation process. It has not only greatly improved the efficiency of mass production processes such as art creation, but has also been widely used in various fields such as code research and development, intelligent customer service, and quality inspection, and has comprehensively optimized game quality and operational efficiency. In 2025, Century Huatong will further explore the deep integration of AI technology and games, and launched the “Idea-X Plan” (Innovative Mini Game Demo Design Competition) within the company to accelerate the exploration of AI native games in all aspects. Notably, Century Huatong also launched the “Dragon Cup” global AI game and application competition for the world to comprehensively promote the breakthrough development of AI technology in game development and application in various fields.

AI tools enable the entire process of game development and operation

Improve quality and efficiency: Shengqu Games developed its own “Art Asset and AIGC Creation Management Platform”, increasing the efficiency of mass production by 60-80%. Little by little interaction “Endless Winter” gradually forms a collaborative production model of “AI generation+manual refinement”.

Quality control: An AI automated cloud testing platform was launched, which can provide 30,000 to 50,000 sample test data within a test cycle of 3-5 days, and combines an AI test system with brain science research to develop a “brain language evaluation” project, which can analyze user mood data through a brain-computer interface.

Smart NPC: “World of Legends” is connected to the DeepSeek model, and the smart NPC “Old Hyun Hyun” was launched, which will be applied to other products.

Intelligent customer service: Using big language models, combined with RAG technology and a local question and answer library, and self-developed algorithms to launch the “Little Fun” of digital people.

Co-working: Shengqu Games has deployed the DeepSeek-R1 model in all scenarios to achieve efficient collaboration in game development and non-technical departments.

“Dragon Cup” Global AI Game and Application Innovation Competition

Century Huatong launched the “Digital Dragon Cup” global AI game and application innovation competition, received guidance from the China Audio and Digital Association Game Industry Committee and other industry associations, and reached a strategic cooperation with ChinaJoy, which will effectively promote breakthroughs in technological innovation, discover outstanding AI talents and teams for the industry, promote exchanges among all parties in the industry chain, promote the prosperity of the AI industry ecosystem, and further promote AI technology to penetrate more deeply into game research and development, intervene more fully in application scenarios and accelerate the popularization of AI technology in interactive entertainment and more industries.

Build an AI ecosystem for the whole industry chain and explore collaborative applications of technologies in multiple fields

While actively expanding “game+AI” application scenarios, Century Huatong's artificial intelligence cloud data business has been transformed and upgraded to AI+IDC, gradually building a complete AI ecosystem covering infrastructure construction, game ecology, and cross-industry empowerment. Currently, Century Huatong has built large-scale computing power clusters in the Yangtze River Delta and Pearl River Delta. Among them, Century Huatong has deeply participated in and invested in Tencent's Yangtze River Delta Artificial Intelligence Advanced Computing Center and Ecological Industrial Park projects, and plans to build a “computing power+” innovation enabling platform based on the scale effects and technical advantages of the two major computing power hubs to provide comprehensive computing power services for innovative businesses such as AI game development, intelligent content generation, and industrial digital transformation. At the level of industrial application, Aifin Technology, an ecological enterprise incubated by Century Huatong, uses the “AI+ industry” as an entry point to launch solutions with practical application value in many traditional industries such as textiles and animal husbandry. In 2025, the launch of the new sub-brand “Shulong AI” marks a new stage in Century Huatong's strategic layout in the field of AI. As the AIDC business progresses further, it will provide strong support for the development of Century Huatong's new quality productivity. At the same time, in cutting-edge technology fields such as VR/AR, Century Huatong is also maintaining an active promotion trend, continuously exploring and extending the layout upstream and downstream, and is committed to exploring underlying technological innovations such as big data, software and hardware, to achieve full-link technology output and multi-field technology collaboration. Overall, Century Huatong continues to increase resource investment in innovative fields such as artificial intelligence, quantum computing, and blockchain, focusing on deepening its layout in cutting-edge technology fields, embracing technological upgrading, and accelerating the high-quality development of digital productivity.

37 Entertainment

Use the self-developed game industry model as the foundation to upgrade and build a full-link AI-enabled ecosystem

37 Mutual Entertainment's forward-looking multi-point layout of new productivity, from the development of artificial intelligence and big data tools to the continuous upgrading of the AI capability system, has now successfully built a full-link AI enabling ecosystem centered on its self-developed industry model, which has significantly raised the level of industrialization of game development and operation. The industry model “Little Seven” developed by 37 Mutual Entertainment integrates more than 40 types of AI capabilities covering the dimensions of art, delivery, customer service, operation, and technology, and uses this as a basis to comprehensively intelligently upgrade the original digital intelligence product matrix. At the business application layer, intelligent production and application of various content forms such as AI-multi-modal classes, AI-text classes, and AI-integrated classes have been realized. In the R&D process, AI algorithms can be used to upgrade motion capture, optimize AI balance testing, improve 2D game art efficiency, and AI agents assist in game planning. In the general office field, internal artificial intelligence assistants based on the “Little Seven” model have penetrated employees' daily work scenarios, effectively improved overall work efficiency, and promoted the reshaping of various business processes. By exploring the deep integration of artificial intelligence technology and the game business, 37 Mutual Entertainment not only promoted innovation in game production pipelines, but also tried to tap the potential to drive game innovation, and continued to accumulate experience in cutting-edge fields such as AI-assisted game project establishment, AI all-element game generation, and AI game home general solution development. Currently, 37 Mutual Entertainment is continuously carrying out technical verification and capacity accumulation, focusing on consolidating the capability foundation for future commercial product implementation, exploring the deep integration path of AI and game content, focusing on the possibilities of AI in improving product gameplay and enhancing interactive experience, comprehensively developing new quality productivity, and driving the high-quality development of the game industry.

AI reshapes game pipelines to improve quality and efficiency

The participation rate of AI in the utilization and management of art assets has exceeded 70%, and text scenarios such as customer service, translation, and UGC have reached 80% or more, and code generation efficiency has increased exponentially; the proportion of 2D art assets generated by AI technology in the distribution process has exceeded 80%; AI-3D assisted asset generation accounts for more than 30%; AI is deeply involved in generating more than 70% of advertising material videos; and comprehensive applications such as AI delivery and AI data analysis are gradually being implemented.

AI-driven exploration of game innovation

Combining AI technology to improve the efficiency of product project establishment and version operation and update;

Explore new experiences in constructing non-linear game processes based on AI all-element game generation based on user preferences;

Explore the creative fusion path between games and UGC, and develop innovative gameplay methods such as intelligent NPCs and AI game homes.

Use AI technology as the core driving force to lay out the pan-entertainment and urban consumer sectors

37 Mutual Entertainment not only continues to deepen application scenarios for new types of productivity such as artificial intelligence in the core game business field, but also actively explores cross-border integration such as “game+cultural tourism” and “game+consumption,” and is also building industry-university-research platforms with well-known universities such as Sun Yat-sen University to promote the transformation of scientific and technological achievements. On the other hand, 37 Mutual Entertainment is also gradually opening up the “computing power infrastructure - big model algorithm - AI application” industrial chain layout through technology investment, promoting resource sharing and complementary advantages, helping the comprehensive development of the new quality productivity industry chain and building a win-win ecosystem. Currently, 37 Mutual Entertainment has directly or indirectly invested in a number of enterprises such as Zhipu Huazhang, Baichuan Intelligence, Dark Side of the Moon, Silicon Heart Technology, and Shenyan Technology to promote enterprise AI technology innovation and stimulate the development of a new quality of enterprise productivity through the AGI layout.

Youzu Network

Build a full-link AI enabling system to explore innovative applications of cutting-edge technology

Youzu Network continues to promote the innovative practices of cutting-edge technology across the game field, and has made a series of advances in key areas such as R&D, distribution, and operation. In terms of R&D, Youzu Network is focusing on consolidating the R&D foundation, building an integrated AI platform, empowering game production pipelines, continuously promoting production automation, standardization, and large-scale production in various fields such as art asset production, code generation, TTS voice generation, and localized translation, and raising the level of industrialization of the game R&D system. In terms of distribution, Youzu Network is committed to improving terminal adaptability and diversified distribution capabilities, using advanced technology such as big data and AI, and innovatively commercializing AI tools throughout the distribution process, achieving instrumental coverage of the entire distribution process from version release, platform access, marketing, etc., effectively improving the operating efficiency of “one version, global distribution”. At the same time, AI technology has been deeply applied to event operation, material generation, etc., and has carried out innovative practices in the field of intelligent NPCs, effectively enhancing players' sense of immersion and accomplishment. Youzu Network also launched the first AI playmate product, “Xiaoyouchan,” which enhances players' entertainment experience in multiple dimensions, reflecting Youzu Network's continuous exploration of game value extension and AI technology innovation. In addition, Youzu Network has also built a matrix of five major AI tools: intelligent BI, translation platform, content risk control, intelligent operation, and automated testing, to fully enable the entire game development and operation process.

Strengthen the AI layout based on the industry and further promote industrial ecosystem construction

Based on the “Zhizi Laboratory” and “Red Bank Laboratory” set up by its AI Innovation Institute, Youzu Network has made breakthroughs in the two major directions of “AIGC” and “AI-enabled game globalization”, respectively. It not only had significant effects in improving quality and efficiency in the global game development and distribution business, but also actively explores technological integration between AI and UGC in various fields such as content ecology and social interaction, and has made certain progress. At the same time, Youzu Network focuses on external collaboration. Through cooperation with well-known enterprises and universities, it actively participates in industry co-construction, continuously strengthens the integrated application of AI technology in the game industry, and further promotes industrial ecosystem construction. For example, it reached a strategic cooperation with Volcano Engine to jointly explore the application prospects of AI big model technology in the entertainment industry; jointly launched the “New Quality Productivity Digital Innovation Alliance” with People's Venture Capital and Zhongke Shuguang to contribute to the formulation of relevant policies and industry standards; also launched the “Autonomous Intelligent Unmanned Systems Big Model Program” with the Shanghai Autonomous Intelligent Unmanned Systems Science Center; through various methods such as building its own AI Innovation Institute and deepening industry-university-research cooperation, Youzu Network continues to expand its strategic layout in AI empowering the interactive entertainment industry, breaking through its own development framework and focusing on scientific and technological innovation and industry sustainability Development contributes to the overall progress of the AI industry.

Business cooperation

In July 2024, Youzu Network and Volcano Engine reached a strategic cooperation. The two sides will use cloud computing and AI big model technology as the foundation to carry out relevant technology research and application practices in the direction of AI empowering the culture and entertainment industry, jointly explore innovative applications of AI in the game industry, and open up a new paradigm for the future development of the entertainment industry.

Hardware and software infrastructure

In July 2024, Youzu Network, Tongji University, and the Shanghai Autonomous Intelligent Unmanned Systems Science Center jointly launched the “Autonomous Intelligent Unmanned Systems Big Model Project”, which focuses on building a benchmark application scenario for artificial intelligence, focusing on promoting the application of artificial intelligence in various aspects, boosting the digital digitization process, and accelerating the deep integration of artificial intelligence with cutting-edge technologies such as cloud computing and big model technology, providing technical support for the “integration of digital intelligence and virtual reality” to optimize and improve the AI industry ecosystem.

Industry co-construction

In May 2024, Youzu Network, People's Venture Capital and Zhongke Shuguang jointly launched the “New Quality Productivity Digital Innovation Alliance”, which aims to promote digital technology innovation and integration, empower enterprises to digitally transform, and help formulate relevant policies and industry standards. By integrating the forces of high-quality enterprises, research institutes, investment institutions, etc., a closely connected, efficient collaboration, and organic unified innovation ecosystem is gradually formed in the digital economy.

Mid-mobile game

Deepening the application of AI technology in the whole process of R&D and operation has a significant effect in reducing costs and increasing efficiency

China Mobile Games (CMGE) follows its mature methodology in game technology research and application, actively explores the practical application value of AIGC technology innovation, and achieves cost reduction and efficiency in various aspects of game research and development, content creation, and operation management. In particular, in specific aspects such as art production, copywriting, NPC behavior generation, and test optimization, the application of AIGC technology has greatly reduced labor costs and effectively improved R&D efficiency. Judging from the annual report data, after large-scale introduction of AIGC technology, China Mobile Gaming's R&D expenses in 2023 decreased by nearly 30% to RMB 370 million compared to 2022. In 2024, China Mobile Games further reduced R&D expenditure by 34.0% year-on-year through organizational structure optimization and deep integration of AIGC technology, reaching RMB 240 million. At the same time, China Mobile Games strengthened its AI strategic layout through in-depth cooperation with the volcano engine “Doubao Big Model” and the full deployment of the DeepSeek model. China Mobile Games continues to explore the use of AI technology to improve game development efficiency and enrich game content, and is committed to developing application scenarios and innovative gameplay for large models in the game field. In the future, as China Mobile Games continues to develop a strategic layout around “AI+ games” and “AI+ game development and operation”, apply AI technology more widely to all aspects of game development and operation, and accelerate the innovative application of large models in the game industry, it is expected that it will further enhance the game experience, reduce development costs, improve operational efficiency, and gradually enter a payback period for its AI strategy investment.

Data source: corporate financial report

Mobile games introduce AI technology (partial)

In September 2024, China Mobile Games built rich AI gameplay by introducing “bean bag” big model capabilities, creating AI NPCs with long-term memory and growth capabilities, and using mature RAG technology to further enhance the model's reasoning effect and optimize AI game content performance. Previously, China Mobile Games successively cooperated with ByteDance's Massive Engine, Morning and Sunset Lightyear, and Volcano Engine in business areas such as marketing and promotion, games, technology, and IP derivatives, respectively, and established a strategic partnership with Volcano Engine in 2021. Now, Chinese mobile games are fully integrated into Volcano Engine technology and solutions, which will be able to accelerate game construction with large model capabilities and provide players with better game content.

In February 2025, China Mobile Games announced that it had completed the deployment of the DeepSeek model and upgraded the dynamic interaction system and open world gameplay using AI technology. It plans to launch a series of innovative gameplay including AI character NPCs, AI ghost NPCs, AI card corner interaction, and AI spirit pets. In the future, NPCs in the game will have more complex behavioral logic and interactive abilities, and can respond in a personalized manner based on players' behavior, emotions, and changes in the game environment, which will further enhance the freedom and richness of the game.

IP ecological value continues to be released to strengthen the second growth curve of technological innovation and development

In recent years, China Mobile Games has built a second growth curve by deepening the IP ecosystem and strengthening technological innovation, continuously unleashing the commercial value of global boutique IPs, and actively exploring emerging fields such as innovative mini games. In terms of IP ecosystem operation, China Mobile Games has built an entire industry chain layout covering games, film and television, animation, derivatives and live entertainment around classic IPs, and strives to provide users with a more immersive game product experience and innovatively explore fictitious and realistic business formats by introducing new types of productivity such as AI and XR. At the same time, China Mobile Games upholds the strategy of open cooperation, shares resources with industry chain partners, and jointly explores cutting-edge technology applications. For example, through cooperation with Tencent Pioneer Cloud Gaming, China Mobile Games is committed to promoting cross-platform gaming experiences such as mobile, PC, cloud, console, and VR (virtual reality). It also plans to reproduce more classic IP and game content in XR format. On the other hand, mobile games in China have opened up new growth points in the field of mini-games in recent years. They are also actively exploring AI native games and experimenting with mini-game products that are independently generated by AI to lay the foundation for future game form innovation. In the future, China Mobile Games is expected to use IP reserves and technology accumulation to achieve breakthroughs in global IP games, innovative mini games, and new AI-driven business fields, and push performance back on a growth path.

At the mini game level, mobile games are experimenting with self-generated content and levels with AI, which is expected to improve the efficiency of their mini game development. At the same time, the accumulation of AIGC related aspects of mobile games is expected to continue to play a role in various fields such as mini game testing and marketing.

Mobile game mini game results:

“Chunqiu Xuanqi”, which was launched in January 2025, has accumulated over 100 million sales in the 2 months since its launch, rising from 24th to the highest 9th place in the WeChat game bestseller list;

After the launch of “Demolish a Hammer”, it reached 32nd place in the WeChat game bestseller list, and also ranked in the TOP1 game category of games to eliminate all three in the tower defense category. The game achieved performance of 75% paid retention and a 7-day paid retention rate of up to 45%;

“The main character doesn't run” has sold over 10 million yuan over several months;

Various mini-games, such as the mini-games “The Legend of Ling Xue” and “Gunfighter for All”, which were launched in previous years, have effectively expanded the number of low-level mobile game players and increased the number of new and active users.

Shengtian Network

Continue to promote the development of new quality productivity in the fields of gaming, social networking, overseas, etc., and deepen the integration of numbers and reality

Relying on the “platform+content+service” ecosystem, Shengtian Network began in-depth research and application exploration of artificial intelligence technology in 2021, strategically laid out the XR metaverse in 2022, set up an AI innovation laboratory in 2023, and continued to introduce new productivity elements in 2024 to deepen the industrial layout of game social networking, game services, and game content. In terms of the game business, Shengtian Network has recently implemented a large-scale native game application, further empowered AI games and game social scenarios through self-developed AI platform capabilities, and carried out many experiments in various fields such as virtual companionship, game content generation, player behavior analysis, and intelligent customer service. In terms of social networking business, Shengtian Network has an “e-sports app” that incorporates the “AI+ social networking” ecosystem and an AI native music social app “Give Mac” launched in 2023. In addition, it also has relevant technical reserves in innovative gameplay such as AI virtual social networking, AI virtual character chat, and AI virtual person creation, and continues to explore the various capabilities of multi-modal large models in such applications. In terms of scenario business, Shengtian Network's Suileyu cloud gaming platform is deeply integrated into the XR field. It has successively reached cooperation with Ideal Auto, NIO Auto, Rantu Auto, etc., and continues to explore multiple scene entrances such as smart cockpits. In 2024, Shengtian Network signed a Tencent Gaming Life Strategy Partner. It will further strive to open up online and offline scenarios through platform services and further promote the integration of digital reality. In 2025, Shengtian Network also strengthened its overseas layout: achieving multi-terminal adaptation through cloud gaming technology, using Al technology to optimize overseas distribution efficiency; focusing on developing an Al social overseas product, empowering content with technology, and exploring pan-entertainment overseas.

Using AI strategy as the core of development to create a full-level pan-entertainment platform

Shengtian Network continues to advance the AI strategy and is committed to building an AI pan-entertainment platform covering the application layer, model layer, and infrastructure layer. At the application level, AI technology has been explored and applied in core business fields such as games, social networking, and scenarios. At the same time, a series of AIGC courses have been launched within the company, covering aspects such as big model principles, prompt engineering, art design, and programming testing, to encourage employees to use AI tools to improve work efficiency.

At the model level, the VRACE AI platform independently developed by Shengtian Network integrates a number of cutting-edge technologies and can provide comprehensive intelligent support for core businesses such as gaming and social networking. Among them, the AI art cluster codenamed Dunhuang integrates multiple functions such as text-to-image generation, image color optimization, and style conversion; the AI voice cluster codenamed eight sounds has powerful speech recognition, speech synthesis, and tone cloning capabilities; and the AI text cluster codenamed Nebula can understand various input forms such as images and sounds and generate high-quality text content in real time through multi-modal fusion technology. Furthermore, Shengtian Network has integrated DeepSeek related capabilities, combined with the VRACE AI platform to cover the entire process of art creation, voice interaction, and narrative generation with vertical solutions in the entertainment industry, which can further empower AI games and game social scenarios.

At the infrastructure level, Shengtian Network independently developed the cloud computing platform “Shengtian Cloud” focusing on games and social services. Through the differentiated layout of self-built cloud and computing power systems, Shengtian Network provided full-link technical support for various businesses. Through its systematic layout in the AI field, Shengtian Network has actively cultivated and applied new quality productivity, which has not only promoted the transformation and upgrading of its own business, but also injected new momentum into the high-quality development of the pan-entertainment industry.

Insights on the development of new quality productivity in the game industry

Hardware equipment capabilities limit the application and popularization of high-end technology and need to find alternative ideas or strengthen the influence of the industrial chain

The development of the technical level of the Chinese game industry often revolves around the software level, which has a decisive impact on the quality of game products. However, there may be a risk that hardware devices will be difficult to carry innovative results. For example, improvements in game screen quality, operation experience, etc., present challenges to device refresh rates, network stability, and battery performance. At this stage, some problems with poor user experience exist objectively and depend on further solutions in the future. It is necessary to find alternative ideas, or strengthen the influence of the industry chain, and seek cooperation with hardware equipment companies.

Data Source: Gamma Data (CNG)

The limited size of some market segments limits R&D technology development and makes it more difficult to break through the global market

In the process of developing a new level of productivity in the game industry, the strategic layout of top platforms is particularly critical. This means that further exploration and testing of our own product development technology is also expected to expand the upper limit of the company's R&D capabilities. Take the console game field as an example. At this stage, China's domestic console game market is small, the number of development teams is limited, global competitiveness is insufficient, and it has not been able to accumulate corresponding R&D capabilities. At the same time, the size of the global console game market continues to stabilize at more than 40 billion US dollars, and there is a broad market space. The lack of investment in the domestic console game sector has not only limited the expansion of Chinese game companies into the global market, but also constrained the development of the industry's emerging productivity.

Data Source: Gamma Data (CNG)

Data Source: Gamma Data (CNG)

Insufficient reserves of top technical talents such as AI and game engines. Cultivating talents has become a difficult point in developing new quality productivity

Talent is the key to the continuous advancement and development of technology in the game industry, but at this stage, there is also a general shortage of top technical talents in the game industry. Take artificial intelligence as an example. At this stage, the main positions in the entire industry are facing talent shortages of varying degrees, such as algorithm engineers, data modeling, deep learning, etc., and this is also a necessary talent in the game industry's AI development process. As the supply of AI talents is insufficient, it will also affect the development process of technology related to the game industry. In addition to AI, there is a shortage of engine technical talents that can undertake major tasks for hosts and clients, and there is also a lack of project experience and mature training mechanisms. Therefore, talent training will also become a difficult point in the development of new quality productivity in the game industry, which needs to be further solved in the future.

Data source: Big Data on Hunting and Recruiting (statistical time: February 2024-January 2025)

Note: TSI = number of jobs needed/number of job seekers, reflecting the shortage of talent

TSI>1: Talent supply is in short supply TSI <1: Talent supply exceeds demand