November Newsletter I China’s Gaming Visions

Welcome to the November edition, where we explore the latest insights in Asia's gaming world!

Our CEO Wojtek Jaworski 严立行 ?? GDC just came back from a business trip to both China and Korea and has some insights about the current state of the markets, directly from the battleground.?

?HERE you can read more about why PC as a platform is on the rise in Asia.?

Highlight of the month - Huqiao attended 4 events in 4 countries simultaneously!

Our team was present at:

Berlin Gaming Festival in Germany?

Game Develοpers Meetup Larisa in Greece

G-STAR in South Korea

WePlay in China

…and to share with you key takeaways:

Busan: Getting your Verified Status on Steam Deck prior to the next edition of G-Star will highly boost your visibility in Korea. Consoles can be found all over the event, due to Valve corporation heavily marketing the Deck in Korea.?

Shanghai: Remember to set up WeChat prior to attending or exhibiting your game. Kacper Przybyszewski (朴瀚博）just got 15 new friend invites (potential partners, media) and 0 business cards - China keeps everything digital.

Berlin: The gaming Industry is constantly shifting - events such as the one in Berlin are a great chance to learn from the best. Good place to network with most established brands.?

It’s important to be both online and offline, to stay on top of the industry and provide top-notch coverage for the games that we work with.?

Achievements | Our Partners' Digital Silk Road to China - Factorio DLC!

?Are Paid Influencer Campaigns a Thing of the Past??

Last month, WUBE SOFTWARE LTD released a highly anticipated DLC for Factorio, and it was a massive hit!?

As part of our strategy, we launched an additional influencer campaign on BiliBili a month before the release. The results speak for themselves: over 466k views, 18k likes, and 2200 comments. But that's not all! The campaign's success sparked a wave of interest, with dozens of influencers reaching out for DLC keys and more than 150 organic videos being created in just two weeks post-launch.

This experience highlights that paid campaigns, when executed well, can drive significant impact and foster organic growth. Remember, "THE FACTORY MUST GROW!"?

Industry News | Opportunities for Game Dev

How marketing helped Chinese apps and games to expand overseas [LINK]

Chinese apps and games, such as Black Myth: Wukong, Temu, Shein, and TikTok, have seen remarkable international success, driven by strategic marketing and innovation.?

• Global Strategy: Chinese developers are designing apps with global audiences in mind, shifting from a domestic focus to international markets.

• Marketing Investment: Chinese companies are expected to spend over US$50 billion on international marketing by 2025.

• Gaming Sector Growth: Chinese games account for 31% of global mobile gaming revenue, with Black Myth: Wukong selling 10 million copies in three days.

• Ecommerce Expansion: Platforms like Shein and Temu leverage aggressive pricing, influencer marketing, and targeted ads to capture global markets.

• Advertising Platforms: Advanced adtech solutions help Chinese apps expand their reach and optimize ad revenue.

Black Myth: Wukong propels Chinese gaming market to record high in third quarter [LINK]

China's video gaming market reached record revenue in the third quarter, largely fueled by the success of Black Myth: Wukong, the country's first AAA video game.?

• Record Revenue: The market's revenue rose to 91.8 billion yuan (US$12.9 billion), marking an 8.95% increase from the previous year.

• Global Impact: Black Myth: Wukong's international popularity contributed to a 21% growth in overseas revenue for Chinese-developed games, totaling US$5.17 billion.

• Sales Milestone: The game has sold over 21 million copies globally, generating over US$1 billion in revenue.

• Rising Developer: Game Science, the game's developer, has become the 12th largest game publisher on Steam, trailing behind industry giants like Valve and Electronic Arts.

• Moderate Mobile Growth: Mobile game sales in China saw a slight increase of 1.21% in the third quarter.

• The success of Black Myth: Wukong highlights China's growing influence in the global gaming industry, driven by strategic development and international appeal.

WoW and Hearthstone DAUs in China increase 50% and 150% following their return to country, NetEase reports [LINK]

NetEase's third-quarter financial results reveal key insights into its gaming business, highlighting the impact of Blizzard titles' return to China. Key points include:

• Revenue and Profit Decline: NetEase reported a net revenue of 26.2 billion yuan (US3.7 billion), down 3.9% year-over-year, with a gross profit of 16.5 billion yuan (US2.3 billion).

• Gaming Revenue: The gaming division generated 20.9 billion yuan (US$3 billion), with 97% from online games, primarily mobile titles.

• Blizzard Titles' Resurgence: Following the renewal of its publishing agreement with Blizzard, World of Warcraft saw a 50% increase in daily active users (DAU), and Hearthstone experienced a 150% growth in China.

• New Game Launches: NetEase is expanding its portfolio with new titles, including Destiny: Rising, Marvel Mystic Mayhem, Marvel Rivals, and Where Winds Meet, aimed at diversifying genres and expanding globally.

Anticipating Surprises at The Game Awards 2024

The upcoming Game Awards 2024 could hold unexpected turns, particularly with the nomination of 黑神话 (Black Myth Wukong) for Game of the Year. This nomination has stirred considerable debate within the industry regarding its merit. However, considering the game's significant impact on the global market, particularly in China—which accounts for 36% of Steam's market share—it appears well-deserved.

Following the nomination, platforms like 抖音 (Douyin) and 小红书 (Xiaohongshu) quickly became hubs of activity, as gamers rallied for votes. Audience voting plays a crucial role, contributing 10% to the final decision, and the vast Chinese gaming community is a powerful force in this process. Chinese gamers can cast their votes directly through platforms like 哔哩哔哩.

Could Wukong clinch the title of Game of the Year? We invite you to share your thoughts and predictions in the comments.?

Ready to level up your insights and strategies in the gaming industry?

? Subscribe to Huqiao's Newsletter for your monthly dose of industry trends, in-depth analysis, and actionable marketing strategies. Stay ahead in the fast-evolving gaming sector. Click the button to subscribe and join our industry leaders and innovators community. Let’s dive into gaming in China!