October witnessed the green light for 87 video game titles in China, marking the resurgence of the nation’s gaming industry following the alleviation of a strict regulatory phase. Premier gaming corporations such as NetEase and miHoYo were among those that had their games approved, showcasing the industry’s vitality.
One of the highlighted approvals was miHoYo’s action-packed game, Zenless Zone Zero. While the game’s official launch date remains under wraps, anticipation has reached fever pitch. This is evident from the staggering 11 million pre-orders garnered across multiple platforms, a testament to the game’s potential success and miHoYo’s influential position in the gaming realm.
NetEase also made headlines with its upcoming role-playing game, She Diao. This game is an ode to the revered wuxia novel, The Legend of the Condor Heroes, penned by the esteemed Chinese writer, Jin Yong. Originally announced in May of the preceding year, fans are eagerly awaiting an official release date.
The consistent approval of game titles by the National Press and Publication Administration (NPPA) throughout October aligns with the preceding months. The gaming industry in China is witnessing a renaissance, especially after enduring an eight-month licensing hiatus last year. This period of stasis was primarily initiated to counteract gaming addiction concerns among Chinese youth. With approvals recommencing in April 2022, China’s gaming market has been on an upward trajectory.
However, the Chinese gaming landscape isn’t devoid of challenges. The government remains vigilant, ensuring the censorship of content in games that could potentially be deemed detrimental. Furthermore, a rigorous licensing system is in place, and international game developers aiming to penetrate the Chinese market often find it essential to collaborate with local publishing counterparts.
The gaming industry’s revenue figures provide a glimpse into its recovery. Despite a dip of 2.4% in revenues during the first half of 2023 compared to the same period in the preceding year, there was a remarkable surge of 22.2% in the latter half. This momentum was especially palpable during May and June. Predictions from gaming market research firm Niko Partners suggest that by the year’s end, the total game licenses could touch 1,100, eclipsing the combined figures of 2021 and 2022.
Tencent Holdings, the global gaming juggernaut, experienced an 11% revenue surge in the first half of 2023, compared to the same timeframe the previous year. Additionally, NetEase observed a revenue augmentation of 3.7% in the second quarter.
miHoYo’s success story is noteworthy. Bolstered by the monumental success of Genshin Impact, the company reported a net profit of a staggering 16.15 billion yuan (US$2.2 billion) the previous year. This achievement further positioned co-founder Cai Haoyu as one of the luminaries in the recent Hurun China Rich List, marking him as a key entrepreneur witnessing significant wealth augmentation in 2023.
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