The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 147 domestic games and 7 import games on April 29, 2026. This is the third batch of games approved in 2026 and takes total approvals to 600 domestic games and 21 import games The domestic batch included 135 mobile games, 1 PC game and 11 cross platform games, while the import games list included 3 mobile games, 2 PC games and 2 cross platform games. The most notable domestic approval was NetEase’s Sea of Remnants, its pirate adventure RPG. The most notable import game approval was Nexon’s Arc Raiders, which is set to be published by Tencent in China. A total of 13 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN. We expect more than 2,300 video games to be approved this year, with over 100 of them being import games.

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Livestreaming Tracker April 2026 Highlights: Tencent’s Honor of Kings: World Rises into April’s Top 10 RPG Viewership Rankings

RPG titles dominated China’s livestreaming landscape in April 2026, standing out as some of the month’s most-watched content. Niko Partners’ China Games & Livestreaming Tracker reveals that RPG games remained one of the most-watched genres in China’s livestreaming market in April 2026, with newly launched title Honor of Kings: World emerging as the latest driver of the genre’s overall performance. Notably, this marks the second Tencent RPG title in two consecutive months to significantly lift RPG viewership, following the strong performance of Roco Kingdom World in March.

Read our quick take on the standout title from this month’s top 10 shooter games, based on the Niko Index, our proprietary metric for estimating total viewership across games, streamers, and categories.

Read the highlights →

Sony looks to combat piracy with one time license check

After player speculation around a new DRM policy, Sony Interactive Entertainment have confirmed that PlayStation games will have a one time online check to confirm the games license is legitimate, with no further checks required. The statement comes after players raised concerns over a 30 day timer attached to the license of newly purchased games, which many thought would indicate an ongoing license check reminiscent of the original Xbox One licensing pitch that was widely rejected by gamers and caused Microsoft to reverse course at the time.

Why this matters: While piracy on the PS5 is extremely limited and impractical for most users, an exploit did allow players to purchase a game and obtain a permanent license key without having to download the game itself. The game could then be refunded, allowing the player to use the previously obtained permanent license key to download and play the game after the refund had been processed. Older generations of consoles continue to remain the most exploitable and vulnerable to piracy, whereas modern consoles have been fairly hard to crack.

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Tencent increases stake in Black Myth: Wukong developer

Tencent has increased its stake from 5% to 24% in Game Science, the developer of Black Myth: Wukong. The news was confirmed in updated financial statements that also showed that Hero Games, the original backer of the studio, had divested its 19% stake in the company, selling its share to Tencent. The company is now the sole external shareholder. Hero Games originally invested in 2017, prior to the announcement and development of Black Myth: Wukong.

Why this matters: Tencent first invested in Game Science in 2021, taking a 5% stake. The studio will continue to maintain creative and financial control, while leveraging Tencent’s support across marketing, distribution, and more. Black Myth: Wukong was released on August 20, 2024, on PC and consoles, quickly becoming a hit. The game went on to sell over 30 million copies worldwide and the studio is currently developing a follow up title called Black Myth: Zhong Kui.

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NC signs marketing partnership with Roblox Korea

On April 29, NC (NCsoft) announced it signed a marketing MOU with Roblox Korea to collaborate on joint campaigns in the domestic market. The agreement covers online and offline marketing initiatives, co-produced branded content, and promotional activities across both companies’ official channels. As part of the partnership, NC began offering game benefits for three Roblox IP titles at its PC cafe network starting the same day, with plans to expand the lineup. The companies stated that the collaboration aims to broaden user engagement and enhance access to Roblox content among Korean players.

Why this matters: The agreement comes amid a rise in partnership between Western IPs and Korean video game companies to strengthen distribution in the country. Most recently, Blizzard partnered with Nexon to operate Blizzard in the country. Both partnerships also highlighted the need to reach PC café players in the country, who are a notable constituency in terms of time and spend. The initiative also reflects efforts to leverage combined platforms and intellectual property for increased market reach.

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Pearl Abyss divests from CCP Games in management buyout

South Korean game company Pearl Abyss is divesting CCP Games, the studio behind EVE Online, via a management buyout led by CCP CEO Hilmar Pétursson. Korean reports indicate the transaction values CCP at approximately KRW 177 billion ($120 million), with closing expected this week. Pearl Abyss stated the divestment is intended to improve the financial structure of both companies while preserving the possibility of future collaboration. The divestment also comes as Pearl Abyss shifts strategic focus toward its internally developed premium portfolio, including the successful launch of Crimson Desert.

Why this matters: The sale represents a substantial markdown from Pearl Abyss’s 2018 acquisition price of $425 million, implying a roughly 72% reduction in enterprise value over eight years. While unconfirmed, the move reportedly follows years of operating losses at CCP despite the continued resilience of EVE Online, suggesting the studio has struggled to deliver sufficient profitability or pipeline expansion under Pearl Abyss ownership.

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Zenless Zone Zero to release on Steam

MiHoYo has launched a Steam store page for Zenless Zone Zero, confirming a Q2 2026 release on the platform and opening recruitment for an advance test. The title’s Steam listing is currently unavailable in mainland China, consistent with prior regional distribution practices. The move is strategically notable as it marks HoYoverse’s first deployment of an active flagship live service title on Steam in several years. Since Honkai Impact 3rd launched on Steam in 2021, the company has kept larger titles such as Genshin Impact and Honkai: Star Rail off the platform, favoring direct distribution and deals with the Epic Games Store.

Why this matters: Performance of Zenless Zone Zero on the platform is likely to inform whether HoYoverse expands Steam support to broader flagship titles over time. While bypassing Steam historically allowed the company to avoid platform fees and retain direct user relationships, the addition of Steam implies growing prioritization of reach and discoverability over pure margin optimization. Launching on Steam is an accepted practice among Chinese premium game developers, but is still debated among some F2P developers, who prefer to launch their own client.

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Chinese court rules on account reselling

A court in Ningbo has ruled in favor of Bilibili in an unfair competition case involving the sale of game accounts used to bypass real name verification requirements. The defendant, a game related company operating storefronts on an ecommerce platform, was ordered to pay RMB 800,000 ($110,000) in damages and legal costs. According to the court, the defendant sold accounts for more than 20 popular Bilibili server games, with some listings reportedly exceeding 500,000 group purchase orders. These accounts had already been bound to verified adult identities, allowing buyers to log in without undergoing additional real name authentication and thereby circumventing China’s minor protection and anti-addiction systems.

Why this matters: The ruling strengthens legal precedent in China supporting platform enforcement against gray market account trading, particularly where such activity undermines youth regulation compliance. For publishers and platforms, this provides stronger legal backing to pursue third parties facilitating circumvention of regulatory safeguards.

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Wemade settles royalty dispute over MIR IP

On April 29, Wemade announced it had reached a settlement with Chinese game company Kingnet, concluding a long running dispute over unpaid royalties related to The Legend of Mir 2. Under the agreement, Wemade will receive approximately KRW 43 billion ($30.7 million), marking a rare case of meaningful settlement for a Korean game company in a China related IP dispute. The conflict stemmed from nonpayment of royalties tied to a game operated by a Kingnet subsidiary since 2016, amid broader issues of unauthorized sublicensing and missed payments in the Chinese market.

Why this matters: Wemade had pursued both ICC arbitration and litigation in Chinese courts, securing recognition of contract validity and its status as the copyright holder, with a March ruling this year rejecting claims against its licensing rights. The company stated it opted for settlement after considering prolonged legal uncertainty and challenges in enforcing judgments in China.

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ChinaJoy sees strong profit growth ahead of 2026 event

ChinaJoy generated RMB 126 million ($17.4 million) in operating revenue and RMB 55.53 million ($7.7 million) in net profit in 2025, representing YoY growth of 7.92% and 14.7%, respectively. Profit growth was driven by higher visitor traffic and expanded corporate booth sales. The 22nd ChinaJoy, held in August 2025 attracted 410,300 cumulative visitors, up 11.8% YoY. Out of region and overseas attendees accounted for 61% of total traffic, with international visitors reaching 14,700, highlighting growing geographic diversity and international relevance. ChinaJoy 2026 will be held at the Shanghai New International Expo Centre from July 31 to August 3.

Why this matters: Organizers are expanding the event’s strategic focus beyond traditional gaming to drive growth in 2026. Under the “Level Up With AI” theme, ChinaJoy is increasing investment in AI related conference programming and exhibitor recruitment, reflecting rising overlap between gaming and AI ecosystems. The event is also significantly expanding toy, figure, and brand exhibition areas to capitalize on growing demand for gaming adjacent merchandise and IP monetization. Support for indie developers is likewise being increased.

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Vietnam’s mobile game sector reportedly ranks second globally in downloads while shifting toward sustainable monetization

Vietnamese mobile games reached 4.9 billion downloads globally in 2025, ranking second only to China, according to GameGeek’s report backed by Sensor Tower and AppsFlyer. Nearly 95% of those downloads came from overseas markets, with India, Brazil, and Indonesia leading, while IAP revenue grew 83% year over year. What matters most to Niko Partners’ readers is not the download volume itself, but the underlying shift — Vietnam is moving toward exportable, longer-life mobile games and 73% of studios have reportedly moved away from ad-only revenue toward in-app purchases or hybrid models.

Why this matters: The pivot, combined with studios concentrating resources on one to three long-running titles, signals a genuine maturation in how Vietnamese developers build and sustain products. For investors and publishers, the opportunity is in studios that have already made this transition, since lifecycle management and Android-first distribution design will define which ones scale internationally.

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HarmonyOS reaches 55 million users in China

HarmonyOS was running on more than 55 million smartphones as of the end of March, underscoring the continued expansion of Huawei’s proprietary operating system ecosystem. Growth has accelerated alongside Huawei’s smartphone market recovery, with Huawei becoming the #1 smartphone manufacturer by annual shipments, ahead of Apple. Huawei is actively building out platform support through Huawei Game Center, which is positioning itself as a dedicated distribution and community hub for games on HarmonyOS. The company is also emphasizing mini games and lightweight experiences optimized for HarmonyOS.

Why this matters: HarmonyOS requires native application and game development, creating a distinct platform ecosystem rather than relying on Android compatibility. While still substantially smaller than Apple’s installed base of approximately 250 million iPhone users in China, HarmonyOS’ scale is increasingly material for developers, particularly as it continues to grow within Huawei’s own domestic hardware ecosystem.

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Events

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

RPG titles dominated China’s livestreaming landscape in April 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that RPG games remained one of the most-watched genres in China’s livestreaming market in April 2026, with new launched title Honor of Kings: World emerging as the latest driver of the genre’s overall performance.

Notably, this marks the second Tencent RPG title in two consecutive months to significantly lift RPG viewership, following the strong performance of Roco Kingdom World in March. Read our quick take on the standout title from this month’s top 10 shooter games, based on the Niko Index, our proprietary metric for estimating total viewership across games, streamers, and categories.

• Tencent’s Honor of Kings: World ranked as the #15 most-viewed game on our Niko Index chart, and at #4 when isolating the RPG genre, amassing a total of 36.6 million viewers across Huya, Douyu, and Bilibili in April. The F2P cross-platform mobile/PC game was launched across Tencent’s official website and WeGame, a domestic game distribution platform, on April 10. A week later, its mobile version was released on iOS and Android, while closed beta tests continued on HarmonyOS. This marks a major expansion of its flagship Honor of Kings IP into the open world action RPG genre.

• Honor of Kings: World leverages the strength of the Honor of Kings IP, one of China’s largest gaming franchises, to convert existing MOBA players into RPG viewers and drive stronger cross-platform engagement. Meanwhile, Honor of Kings also recorded an 11% MoM increase in viewership, reaching 324 million in April.

• Unlike new IP-driven open world titles, this title leverages over a decade of ecosystem development, including esports, animation, virtual idols, and merchandising. The game focuses on deepening narrative engagement, bringing established characters into a more immersive, story-driven format.

• The game monetizes through cosmetics only, avoiding character or power sales to preserve skill-based, fair gameplay. Early player feedback has highlighted strong reception to character storytelling and world-building.

• Post-launch momentum continues in May with plans to release battle passes, monthly cards, shop updates, creator incentives, and seasonal content to sustain viewership.

The above is an extract from our China Games & Livestreaming Tracker April 2026 summary. See the free sample here.

Niko Partners’ China Games & Livestreaming Tracker views all current and historical data in our dashboard, updated every 24 hours. Niko’s Analysts write and post monthly analysis of key trends and data observed in the Tracker to help our clients with important insights. Learn more about the platform here. Book your free demo!

Capcom’s newly launched original IP PRAGMATA surpassed 1 million units sold worldwide within two days of its April 17, 2026 release, marking a strong commercial debut for the sci‑fi action adventure developed and published by Capcom. According to Capcom, the title’s blend of third‑person shooting and puzzle mechanics, set in an AI‑controlled near‑future lunar environment, has resonated with players. As of April 19–20, the game holds an “Overwhelmingly Positive” rating on Steam with 96% approval from more than 9,400 user reviews and reached a peak of 68,687 concurrent players.

Why this matters: PRAGMATA’s rapid 1 million‑unit sell‑through highlights Capcom’s ability to successfully launch premium new IPs globally, reinforcing the viability of high‑budget original titles amid franchise‑driven market saturation. Niko clients should watch whether sustained engagement and follow‑on content can turn this early momentum into a long‑term franchise, particularly across Asia and on Nintendo Switch 2.

Link to original article (Japanese) →

RELATED: Capcom revises forecast upwards after new games find success

Capcom has revised its full year earnings guidance upward following strong commercial performance from recent releases. The company now expects FY2026 net sales of ¥195.3 billion, up from the prior forecast of ¥190 billion, while operating profit guidance has increased to ¥75 billion from ¥73 billion. The upgrade is driven primarily by the success of Resident Evil Requiem and PRAGMATA.

Why this matters: Resident Evil Requiem has surpassed 7 million units sold within two months, making it the fastest selling entry in the franchise’s history, while PRAGMATA sold 1 million copies in its first two days. Capcom also noted that Requiem’s critical and commercial success has generated uplift across older Resident Evil catalog titles, reinforcing the franchise’s broader portfolio value.

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Sony to raise PS5 console price in Southeast Asia and South Korea

Sony has expanded its latest global PlayStation pricing adjustments to Southeast Asia and South Korea, further increasing the cost of PS5 hardware across key Asian markets. In South Korea, the PS5 Digital Edition rises from KRW 598,000 to KRW 858,000, a 43% increase, while the standard PS5 increases from KRW 748,000 to KRW 948,000, up 27%. Additional affected markets include Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines, following earlier price hikes this month in the US, UK, Europe, China, and Japan.

Why this matters: The move effectively makes the latest PlayStation repricing a near global adjustment. The increases reflect continued pressure from rising memory and component costs, tariff impacts, and broader macroeconomic headwinds. This marks a notable departure from traditional console pricing cycles, where hardware historically declines in price over time. By comparison, the PS4 had fallen to approximately $200 at a similar stage in its lifecycle, while the PS5 now starts at nearly $600 in most markets.

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India notifies gaming rules, sets up Online Gaming Authority

The Indian government has formally notified rules for online gaming under the aegis of the Promotion and Regulation of Online Gaming (PROG) Act, which was passed in August 2025. These rules will come into effect from May 1 2026 and will mandate companies to provide ‘procedural, operational, behavioural, or system-related safeguards for promoting responsible online gaming’. The government has also officially set up the Online Gaming Authority of India (OGAI), a six-member body that will be comprised of members from different ministries.

Why this matters: While online games will not have to pre-register with the OGAI, all forms of esports will have to register with the body. Some games, however, may have to register with OGAI based on criteria including the number of players engaging with a title, the nature and volume of financial transactions taking place with the title, the game’s country of origin, and whether the game’s publisher has an office in India. Further, all companies offering games or related services in India will have to ‘establish and maintain a functional grievance redressal mechanism’ for players, who will also be able to approach the OGAI 30 days after filing their initial complaint.

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ByteDance still has 18 titles in development despite selling Moonton

ByteDance continues to operate a sizable internal games business following the divestment of Moonton to Savvy Games Group for over $6 billion. This is notable given ByteDance has spent the past 3 years divesting its gaming business, but recent recruitment disclosures tied to a new internship hiring push show the company has seven internal game studios and 18 titles in development. The recruitment drive includes 151 roles across planning, engineering, AI, art, and project management, indicating continued investment in development capacity.

Why this matters: The pipeline spans a mix of lightweight and midcore projects, including expansion into the mini game segment. The inclusion of an AIGC focused studio further suggests deeper integration of AI into content production workflows. ByteDance operates Douyin (TikTok) in China and benefits from gaming through its own mini game platform within the app, and partnerships with gaming publishers to advertise on the platform.

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AR battle royale experiences revitalize underutilized malls in China

A growing trend in China is transforming underutilized shopping malls into venues for real world augmented reality battle royale experiences. Empty or low traffic retail spaces are being used to host large scale multiplayer sessions, typically involving around 40 participants using smartphones and gaming accessories in laser tag style gameplay. These experiences blend digital and physical interaction, with players navigating storefronts, corridors, and food courts as in game environments. The format mirrors battle royale gameplay popularized by titles such as Fortnite, translating core mechanics like positioning, cover, and team coordination into real world settings.

Why this matters: Landlords are increasingly supporting these events, either by hosting sessions in vacant malls or enabling after-hours access, creating a new revenue stream for otherwise idle commercial real estate. The model reflects broader shifts in consumer behavior, particularly among younger demographics seeking social, experiential entertainment beyond traditional retail and online gaming. For developers and publishers, this opens potential pathways for IP extension into offline experiences.

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Wuthering Waves expands IP collaboration strategy

Kuro Games has announced a new wave of IP collaborations for Wuthering Waves, set to launch with its Version 3.3 update on April 30, 2026. The update introduces crossover content with major global franchises including Angry Birds, Resident Evil, and Pragmata, alongside additional collaborations with Haikyu, Kaiju No. 8, and Riders Republic. The collaborations are integrated through the game’s Expedition Motorbike system, introduced in Version 3.0, which allows players to traverse the open world using customizable vehicles. Each partnership will feature themed motorbike designs.

Why this matters: This builds on earlier crossover activations with Sonic the Hedgehog and Persona, signaling a deliberate strategy by Kuro Games to leverage IP partnerships as a recurring live ops pillar. By embedding collaborations into gameplay systems rather than limited time cosmetic drops alone, the developer is expanding monetization and engagement opportunities within the core experience. This approach not only drives short term engagement spikes but also reinforces long term ecosystem value, positioning Wuthering Waves as a platform for global brands to collaborate with, as well as an RPG.

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Huawei leads China smartphone market despite overall market decline

Huawei regained the top position in China’s smartphone market in Q1 2026 with a 20% share, its highest level since Q4 2020. Apple ranked second with a 19% share and recorded the fastest growth among the top vendors, with shipments increasing 20% YoY. The performance of both companies was supported by government subsidies offering 15% discounts on devices priced below RMB 6,000 ($880), alongside seasonal promotions during the Chinese New Year period.

Why this matters: Despite strong performance from leading brands, the overall market declined 4% YoY, reflecting supply constraints and rising component costs driven by the global memory shortage. While subsidies and premium device demand support short term user base expansion, rising hardware costs linked to memory shortages may constrain upgrade cycles. This could impact adoption of higher fidelity mobile games, reinforcing the importance of optimization across device tiers and sustaining engagement on existing hardware.

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Lenovo Legion Go S PC Gaming Handheld sees price hike

Lenovo has significantly increased pricing for its PC gaming handheld lineup, with the Legion Go S seeing one of the steepest adjustments. The SteamOS version with a Z1 Extreme chip has risen from $829 at launch to $1,579, while the Windows variant is listed at $1,679. Lower tier configurations have also been affected, with entry models increasing from $599.99 to $1,000 or more across major retailers. This follows earlier price increases for the Legion Go 2, which rose by up to $650, reflecting broader cost pressures across the hardware ecosystem.

Why this matters: The primary driver is the ongoing global memory shortage, which has constrained supply and increased component costs, particularly for DRAM and graphics memory. These pressures are affecting multiple gaming devices, including other PC gaming handhelds, VR headsets and consoles, with price increases observed across competitors. Hardware manufacturers are increasingly prioritizing higher margin models as component constraints limit overall output.

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MPL Indonesia reframes league as creative playground for local IP integration

Mobile Legends’ MPL Indonesia has officially repositioned itself as a “Creative Playground” during the launch of MPL Indonesia Season 17 on April 24, following a Memorandum of Understanding between Moonton and an IP company Tale X, supported by Indonesia’s Ministry of Creative Economy. The initiative is designed to create an ecosystem where Indonesian creators can develop, integrate, and distribute their intellectual property within the Mobile Legends esports league, leveraging one of the country’s largest competitive gaming audiences. For the first time, six locally developed IPs—Starla, Halomiyu, Beemala, Hai Dudu, Khuga, and Cerita Sole—will be formally introduced into the MPL Indonesia ecosystem under this structured framework.

Why this matters: With its massive viewership, MPL Indonesia is positioned as a collaboration and distribution hub to help local IPs reach international markets. This move highlights how major esports leagues in Southeast Asia are evolving into IP incubation and distribution platforms, creating new monetization and export pathways for local creators. Industry players should watch whether MPL Indonesia’s model becomes a blueprint for integrating cultural IP into competitive gaming ecosystems across emerging markets.

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Turkiye enacts first law regulating game platforms like Steam

The Turkish Grand National Assembly has passed new legislation establishing Turkiye’s first dedicated regulatory framework for gaming platforms. The rules apply to platforms with more than 100,000 DAUs in the country and introduce baseline compliance requirements for continued operation. Under the law, qualifying platforms must appoint a local representative or legal office in Turkiye. Platforms must also implement recognized age classification systems, provide parental control tools, and disclose relevant compliance related information including corporate structure, information systems, and data processing mechanisms where applicable.

Why this matters: Earlier drafts of the law had more stringent compliance requirements that may have led to platforms like Steam exiting the market. The removal of those provisions suggests regulators sought a more pragmatic framework balancing oversight with platform viability. The law reflects the growing regulatory presence surrounding digital platforms and youth protection on a local level, requiring platform holders and game publishers to adhere to unique policies in each market.

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Events

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

Tencent launched the open beta for Honor of Kings: World in China on April 10, marking a major expansion of its flagship Honor of Kings IP into the open world action RPG genre. The game focuses on deepening narrative engagement, bringing established characters into a more immersive story driven format. Early player feedback has highlighted strong reception to character storytelling and world building. Notably, the game adopts a monetization model that avoids selling characters or power progression, instead focusing on cosmetic purchases.

Why this matters: Honor of Kings: World represents Tencent’s strategic effort to extend a mature, high saturation IP into a new growth curve. As traditional MOBA engagement stabilizes and gacha-driven monetization faces increasing pressure, open world formats offer an opportunity to capture additional player time and deepen emotional engagement. According to our China Games & Livestreaming Tracker, the title was the #4 most viewed game across livestreaming platforms in its first week.

Link to original article (Chinese) →

How Evergreen Games are Reshaping Publisher Earnings, Metrics, and Success - New Niko Partners Blog Post

Niko Partners reviewed the recent earnings reports of publicly traded game publishers with titles included in the list of evergreen games that are the basis of our new white paper, The Impact of Evergreen Games on the Global Market.

After that review, we wrote an article that connects the dots between the importance of the titles mentioned in company earnings reports and the information Niko conveys in the white paper about the evolution of evergreen games. The post is linked below.

As the video game industry surpassed $190 billion in spending across game software and services last year, it’s no secret that evergreen games, aka forever games, have contributed to that high value. A natural evolution of Games as a Service, evergreen games are built around exceptional replayability with no fixed endpoint, allowing players to stay engaged for months or years. 

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Niko Partners at Vietnam GameVerse

Niko’s Vietnam Analyst, Hung Tang, and Product Manager, Linh Diep will be heading to Vietnam GameVerse on May 8-9 in Ho Chi Minh City. We’re excited to be on the ground in Vietnam and see firsthand how the country is emerging as the next video games hub in Southeat Asia. Let’s connect if you’re going too!

Meet us in Ho Chi Minh City →

Phantom Blade Zero developer rejects GenAI usage

S-Game confirmed that Phantom Blade Zero is in the final stages of development ahead of its planned September 9, 2026 release on PS5 and PC. Alongside the update, the studio publicly stated it will not use generative AI in the creation of visual content, emphasizing that all assets in the game are produced by human artists. While many studios are leveraging AI to improve efficiency and reduce costs, S-Game’s stance highlights a deliberate positioning around creative authenticity and artistic integrity. The studio emphasized that AI driven visual tools could compromise original artistic intent, reinforcing its commitment to traditional craftsmanship.

Why this matters: The decision comes amid increasing adoption of AI tools across the global games industry, particularly in areas such as art production, asset generation, and development pipelines. This position is in contrast to most studios in China which are increasingly integrating AI across workflows, from concept art to QA, in order to scale output and improve margins. The statement does however align with a growing cohort of smaller global game developers who are rejecting AI outright given rising backlash from players over quality and moral issues associated with the technology.

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New livestreaming regulations impact tipping for minors

The Cyberspace Administration of China has introduced updated regulations governing live streaming monetization, implementing a tiered system for tipping by minors. The new rules prohibit tipping for users under age eight, require parental consent for users aged eight to 16, and mandate either guardian approval or proof of income for users above 16. The updated framework also introduces stricter compliance requirements for platforms, including mandatory disclosure of tipping rules, daily and per transaction spending caps, and prompts for users to set limits during initial transactions.

Why this matters: This marks a revision to the 2022 policy that imposed a blanket ban on tipping by all minors, reflecting a more nuanced regulatory approach balancing consumer protection with platform monetization. Tipping and virtual gifting are key monetization channels for game related content on platforms such as Douyin and Huya. Stricter controls on minor spending may reduce short term revenue from younger users but improve long term sustainability by addressing regulatory and social concerns.

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Japanese media link Prince Holding Group to newly formed game studios in Japan

Japanese media investigations reported that Prince Holding Group, a Cambodia‑based conglomerate sanctioned by the U.S. and U.K. and described as one of Asia’s largest criminal organizations, established two game development companies in Japan in 2025. The firms, Soraen (founded April 2025 in Yokohama) and Kadea (founded May 2025 in Tokyo), were reportedly positioned as fast‑turnaround game developers but may have been intended to generate revenue, collect personal data, and recruit engineers for technology‑driven fraud operations. Corporate records show both companies were led by executives later indicted in Chinese Taipei in March 2026 on charges including money laundering.

Why this matters: The unique case highlights how games industry employees could be unwillingly recruited into a company that is essentially a front for criminal organizations. For Japan’s regulators, it underscores the need for deeper due diligence on studio ownership, hiring pipelines, and data handling as overseas investment in the country increases.

Link to original article (Japanese) →

Qualcomm and NetEase expand Windows on ARM gaming

Qualcomm is accelerating its push into PC gaming through its Snapdragon X2 Elite processors, partnering with NetEase to adapt 25 titles for ARM based Windows devices. Supported games include Marvel Rivals, Naraka: Bladepoint, FragPunk, Once Human, Sky Children of the Light, and Where Winds Meet. The Snapdragon X platform, built on ARM64 architecture, is positioned primarily around power efficiency and productivity, but Qualcomm is now expanding its gaming capabilities. Pre-launch messaging highlighted support for over 2,400 games, though many rely on compatibility layers such as Microsoft’s Prism emulation rather than native ARM optimization.

Why this matters: The NetEase partnership suggests a shift toward deeper ecosystem support, potentially including native adaptation to improve performance and reduce friction.While ARM based systems are not yet positioned to replace high end x86 gaming rigs, they are increasingly capable of running mainstream and less demanding titles. This positions them as viable entry level or secondary gaming devices, particularly as hardware costs rise due to memory and component shortages.

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LINE Games adopts co‑CEO structure to accelerate global and multi‑title expansion

LINE Games has appointed Jo Dong‑hyun, the company’s existing CEO, and former CFO and CSO Bae Young‑jin as co‑CEOs, marking Bae’s return to management after three years and formalizing a dual‑leadership structure aimed at strengthening global competitiveness. The company said the new leadership will build on recent cost‑cutting and operational efficiency efforts by shifting toward more aggressive game development and overseas expansion to improve performance. Going forward, the company plans to accelerate a multi‑title strategy, increase the share of PC games targeting global markets, and push international launches of key mobile and PC titles.

Why this matters: LINE Games’ move to a co‑CEO structure highlights a broader industry trend among Asian publishers to pair financial discipline with development leadership as they pivot back to growth. In FY 2025, Line Games recorded revenue of KRW 33.5 billion and an operating loss of KRW 14.9 billion, with management citing the lack of new releases as a key factor, making upcoming titles critical to a return to profitability.

Link to original article (Korean) →

Destiny: Rising overhaul signals shift away from aggressive monetization

NetEase and Bungie have released a major overhaul update for Destiny: Rising, with players dubbing the changes “2.0” due to the scale of system redesigns. The title, launched globally on August 28, 2025 and in China on October 16, initially attracted attention for faithfully adapting the Destiny IP’s sci fi world design and exploration gameplay, but struggled to sustain monetization momentum post launch. The update directly addresses the game’s most controversial monetization systems.

Why this matters: Gacha-based character acquisition, previously the only method, now includes alternative pathways for unlocking characters, while the Pinnacle Energy system, which limited daily gameplay activity, has been removed entirely. These changes reflect a shift toward reducing friction and improving player retention, particularly among core audiences. The overhaul suggests a broader industry learning, where successful AAA mobile adaptations must align more closely with original gameplay ecosystems rather than relying on standard mobile monetization templates.

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Jagex targets APAC expansion with Runescape: Dragonwilds

Jagex has announced plans to launch RuneScape: Dragonwilds in the Asia Pacific region later in 2026, marking what the company describes as its most significant international expansion to date. The rollout will include full localization in Simplified Chinese, Japanese, and Korean, following the title’s early access debut on Steam in April 2025 and its expansion into Latin America in September.

Why this matters: Dragonwilds is designed to align with regional preferences, combining survival crafting mechanics with cooperative gameplay and deep progression systems, a format that has demonstrated strong traction in Asia.The localization effort goes beyond language translation, signaling intent to adapt the experience for local audiences and improve market fit. This is particularly critical in APAC markets where cultural nuance, monetization expectations, and gameplay preferences can significantly impact performance.

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Sanrio and Toei announce dedicated gaming brands

Two major Japanese entertainment companies, Sanrio and Toei, have announced strategic entries into the video games sector through the launch of dedicated gaming labels. Sanrio has established Sanrio Games, a self-publishing division. The company plans to release 10 titles over the next three years, supported by an investment of approximately ¥10 billion ($62.9 million) across development and marketing. In parallel, Toei has launched Toei Games as a new business unit focused on original IP and game development.

Why this matters: Both moves reflect a broader industry trend where IP owners are seeking greater control over value creation by internalizing development and publishing. Games offer higher margin monetization opportunities compared to traditional licensing. While Sanrio is likely to capitalize on globally recognized IP such as Hello Kitty, Toei’s focus on new IP introduces additional creative risk but also long term franchise potential.

Link to original article →

Events

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

As the video game industry surpassed $190 billion in spending across game software and services last year, it’s no secret that evergreen games, aka forever games, have contributed to that high value. A natural evolution of Games as a Service, evergreen games are built around exceptional replayability with no fixed endpoint, allowing players to stay engaged for months or years. These games have also expanded into pan entertainment sectors including esports, transmedia, community creation and more.

Niko Partners reviewed the recent earnings reports of publicly traded game publishers with titles included in the list of evergreen games that are the basis of our new white paper, The Impact of Evergreen Games on the Global Market.

This post connects the dots between the importance of the titles mentioned in company earnings reports and the information Niko conveys in the white paper about the evolution of evergreen games. While other segments of the games industry are also growing and are also healthy, the qualities that have given rise to a growing list of evergreen titles are now key for all in the games industry to understand and learn from.

What is an Evergreen Game?

Niko Partners defines an evergreen game by:

• High player spending, or consistently high annual revenue over the game’s lifetime.

• Strong user engagement, or a high, sustained monthly average user (MAU) count over the game’s lifetime.

• Market longevity, having stood the test of time as a longstanding title.

• A live service element that includes frequent meaningful updates over time.

• Community-driven ecosystem, or high-value social connections between a game’s players that are actively driven by a games’ developer through shared goals and social touchpoints that then positively influence the above two factors.

Evergreen games also allow companies to distinguish between their live-service and ‘traditional’ portfolios, which then allows for unique applications to both. As a result, many traditional publishers have shifted to reporting recurrent spend (e.g., subscriptions, battle passes, and in-game purchases) alongside full game sales, with recurrent revenue now accounting for a larger share of the overall pie. In some cases, particularly in Asia, publishers report recurrent spending as their primary metric, without the need to track full game sales or other legacy metrics like packaged software sales.

Evergreen Games reflected in FY 2025 earnings results of key public companies

To show some examples, Niko has pulled data from 4 publicly traded publishers with evergreen games, 3 from Asia and 1 from the United States.

TENCENT:

Tencent’s online games business saw revenue jump 22% YoY in 2025, driven by the ongoing success and expansion of its evergreen games. An increased commitment to Valorant in China, which included new character skins, limited time modes, and major esports events, led to the game seeing a 30% YoY bump in player spending with average DAUs hitting a record high.

In fact, Tencent was one of the first companies to highlight the role of evergreen games within its strategy. In its Q3 2023 earnings report, the company stated “Our games strategy is built around evergreen games” that are “popular and successful” over the long term, rather than titles with a finite “product cycle that age and then require heavy rejuvenation”. Today, Tencent claims it has 14 evergreen titles that meet its own internal definition, while we have identified 13 that fit our definition.

SEA, LTD:

For Sea Ltd, its games business (Garena) also saw a significant 37.3% YoY increase. While new game launches played a role, it was battle royale game Free Fire that contributed to most growth thanks to new maps, collaborations with Korean and Japanese IP, and over 600,000 players worldwide competing in the Free Fire World Series tournament. Free Fire has now seen two consecutive years of bookings growth greater than 30%, and 2025 bookings were nearly double those recorded in 2023.

Looking at these numbers and the reasons behind their growth, both Tencent and Garena have actively focused on growing their paying user base as well as increasing engagement via regular and timed content updates that have resulted in a positive feedback loop for revenue.

NEXON:

Other companies have applied different approaches to growing their evergreen portfolios. Nexon, for example, saw revenues for its MapleStory franchise increase 43% YoY, thanks to an expansion into new genres with titles like MapleStory: Idle RPG. Nexon is also the parent company of Embark Studios who are behind Arc Raiders which has “sustained strong player engagement and sales momentum with monthly content drops and live events” and could become a long-term hit.

TAKE TWO:

The Grand Theft Auto franchise is a notable example of an IP traditionally associated with a finite experience evolving into a modern evergreen game. While previous entries like Grand Theft Auto IV sold more than 25 million copies in five years and included unique multiplayer modes, the title was never designed to offer a consistent live service experience. By contrast, Rockstar’s observations of mobile live service trends resulted in GTA V launching alongside a continuously evolving online world.

This has resulted in the franchise having “vastly outpaced” Take-Two Interactive’s forecasts, recording repeated consumer spending growth of 27% as of the company’s Q3 results for its 2026 fiscal year. Full game sales have also seen a boost as a result of this longevity, growing from 30 million in 2013 to over 225 million today, and the company has unlocked an additional revenue stream with its GTA+ subscription with “membership levels nearly doubling over the same period last year”.

Outlook for evergreen games

In Niko’s observation, many of the evergreen games in the market come from Asian publishers, and we wanted to explore that with this white paper, having identified more than 60 titles that meet our evergreen criteria. Niko’s 2025 Gamer Survey also found approximately 62% of players across Asia & MENA are motivated to play games that directly align with evergreen game characteristics. As evergreen games mature, growth is also being driven by expanding beyond the core gameplay experience with esports, livestreaming, and transmedia initiatives extending IP visibility, diversifying revenue streams.

Transmedia initiatives have become an especially notable way for video game companies to reach non-players, reactivate lapsed users, grow cultural visibility, and drive revenue growth both in and out of the game. A Minecraft Movie is one such example, with the film grossing over $960 million at the global box office thanks in part to the game’s cross-generational appeal.

UGC is another area of expansion. Several titles have noticed the success of Minecraft and Roblox and included UGC within their game clients, including Fortnite and PUBG Mobile. Asian video game companies, notably those in China and Korea, have also begun using AI to validate and produce content at a quicker pace, though we note that companies are careful to not dilute core gameplay loops or produce content that doesn’t match player expectations of what the game should contain.

Watching the evolution of live-service into evergreen games has prompted us to write this white paper with three primary goals in mind: defining an evergreen game, charting the reasons behind their rise over the past two decades, and providing insight on why such titles are highly favored by players across markets.

Please download Niko’s new white paper, The Impact of Evergreen Games on the Global Market, for FREE here.

Niko Partners will continue tracking the development and evolution of evergreen games, including player response and engagement with these titles and portfolios as more companies attempt to replicate the success existing titles have seen. Our suite of market and online tools, along with our bespoke consulting services, can help examine broad and specific topics within this and other developments that are shaping video game markets across Asia & MENA. We invite you to speak with us.

What makes a game stand out in one market but not others? We’ve partnered with mindGAME to highlight the top-performing games from March 2025 to February 2026 across five key markets that Niko tracks: Japan, India, Saudi Arabia, South Korea, and China. We leverage mindGAME’s mindSHARE metric and Country Popularity Indexes and combine it with Niko’s proprietary Niko Index from our China Games & Livestreaming Tracker, to reveal the titles resonating strongest in unexpected places.

This bulletin provides Niko’s analysis on the why behind the what: The reason behind game titles that overperform locally, and what’s driving their success.

Download the bulletin →

Niko Partners at India Gaming Show

Niko’s Senior Analyst & Global Business Development Narinder Kapur will be attending the India Gaming Show in Chennai from April 17–19. We’re looking forward to connecting on the ground and taking the pulse of one of the world’s fastest-growing video game markets. Please say hi if you’ll be there as well!

Meet us in Chennai →

Indonesia’s IGRS security flaw reportedly exposes unreleased game footage and developer data

The Indonesian Game Rating System (IGRS) came under scrutiny after a security vulnerability on its website was found to allow unreleased game data to be accessed via a public API, discovered by a Reddit user developing an alternative frontend. The leak included footage and information from multiple unreleased titles, most notably a reportedly one‑hour gameplay video of 007: First Light, scheduled to launch on May 27. There are also concerns that developer data, including thousands of project‑related email addresses, may have been exposed, creating risks such as phishing, data misuse, and direct disruption to employees.

Why this matters: This incident highlights how weaknesses in government‑run classification infrastructure can create material commercial and reputational risks for global publishers, particularly as Asia‑Pacific markets tighten regulatory oversight. Developers and platforms operating in Indonesia will need to reassess how sensitive pre‑release materials are submitted and secured during compliance processes. Previously, IGRS sparked criticism for questionable age ratings following its initial rollout on Steam, after which it was subsequently removed (read our writeup on this).

Link to original article (Indonesian) →

Esports Nations Cup 2026 to have 16 titles and $45m investment

The Esports Foundation has announced the full lineup for the inaugural Esports Nations Cup 2026, set to take place in Riyadh, Saudi Arabia from November 2 to November 29, 2026. Positioned as a nation based competition model similar to the Olympics, the event will feature 16 titles spanning PC, console, and mobile, including Honor of Kings, League of Legends, Counter-Strike 2, Valorant, and PUBG Mobile. The tournament is backed by a $45 million funding commitment, including a $20 million prize pool distributed across all titles.

Why this matters: More than 100,000 players are expected to compete in qualification events across 100 markets, highlighting the global scale of participation. The ENC aligns closely with Saudi Arabia’s broader ambition to establish itself as a global esports hub through large scale investment and international events. However, it’s worth noting that multiple in-person events have been cancelled over the past month due to the US-Iran war. While a ceasefire is in place, this conflict remains a material risk for esports events in Saudi Arabia, as well as tourism in general.

Link to original article →

South Korean game publishers push back against YouTuber misinformation

South Korean game companies are facing growing disruption from influential game YouTubers who spread unverified claims about games, undermining user trust and affecting sales and investor sentiment. NC has filed criminal complaints and civil lawsuits against multiple YouTube channel operators for allegedly spreading false information about Lineage Classic and AION 2, arguing that such content causes serious harm to both the company and players. Pearl Abyss also faced a wave of malicious YouTube content following the launch of Crimson Desert, with criticism subsiding only after the company disclosed first‑day sales of 2 million copies and positive global feedback.

Why this matters: While YouTubers and influencers have generally had a positive impact on game discovery over the past decade, the case highlights the rise of creator‑driven misinformation that are driven by monetary incentives and how it is becoming a material business risk for Korean game publishers, accelerating calls for stronger platform accountability and legal strategies to protect live service games and IP at launch.

Link to original article (Korean) →

Malaysian Football League clubs officially join eFootball via Konami partnership

Konami announced a new licensing partnership with the Malaysian Football League that brings all 13 Malaysia League clubs into eFootball for the first time as part of the Version 5.4 update. The integration adds officially licensed teams with authentic kits and updated player rosters, allowing Malaysian clubs to be played within the game’s current systems and exposing the domestic league to a global player base. To support local engagement, Konami has launched a dedicated Malaysia server aimed at improving online match responsiveness and stability, alongside an in-game login campaign that rewards players with a Selection Contract redeemable for Malaysia League Highlight cards.

Why this matters: This partnership underscores Konami’s continued push to localize eFootball through official domestic league licensing and infrastructure investment, signaling growing importance of Southeast Asia in live service football games and esports ecosystems. Notably, eFootball has become the dominant soccer mobile game in a number of SEA countries including Malaysia, surpassing EA FC Mobile in revenue.

Link to original article →

China court rejects case arguing for matchmaking transparency from game developers

A Chinese court has ruled against a lawsuit seeking disclosure of matchmaking algorithms in Honor of Kings, reinforcing legal protections around core game systems. The case, filed in August 2025 by a player and lawyer, argued that the game’s matchmaking system artificially controls win rates at around 50% and requested disclosure under consumer right to information provisions. The court rejected the claim, stating that matchmaking algorithms do not fall within the scope of information that must be disclosed under China’s Consumer Protection Law.

Why this matters: This case is significant given the central role of matchmaking algorithms in live service games, particularly competitive multiplayer titles where retention, fairness perception, and monetization are closely tied to player experience. The ruling provides regulatory clarity in China by affirming that core gameplay algorithms remain protected as commercial secrets. However, it also highlights ongoing tension between transparency demands and proprietary systems, suggesting that publishers may need to balance legal protection with clearer communication to maintain player trust in competitive ecosystems.

Link to original article (Chinese) →

Xiaomi raises its smartphone prices in China

Xiaomi has increased prices on several smartphone models by approximately RMB 200 ($29), effective next week, citing continued sharp increases in memory chip costs. The move follows similar pricing actions by domestic competitors Oppo, Vivo, and Honor, indicating a coordinated industry response to rising component costs. The price adjustments reflect broader supply chain pressures across consumer electronics, driven by constrained DRAM supply and capacity reallocation toward higher margin AI related applications.

Why this matters: Memory procurement costs are rising even as PC demand softens, forcing manufacturers to absorb or pass through higher input prices. When it comes to China’s smartphone shipments, earlier forecasts projected a 10% decline in shipments for 2026, but ongoing increases in memory and raw material costs, combined with inflationary pressures linked to geopolitical factors, could deepen the contraction to 20% to 25%.

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Shanghai government unveils 10 measures to support gaming and esports industry

The Shanghai Government announced its new Several Measures Supporting the Development of the Gaming and Esports Industry in Shanghai policy on April 7, which includes 10 measures to accelerate the development of the industry. The policy focuses on four key pillars. First, it strengthens industrial clustering in Xuhui, Yangpu, and Jing’an. Second, it enhances capital and talent supply, including the launch of a RMB 5 billion game industry investment fund to support startups. Third, the policy emphasizes technology integration and cross-sector expansion. Finally, Shanghai aims to establish a global games export service platform, offering localization, compliance, payments, and data analytics support, while elevating events such as ChinaJoy and China International Game Developers Conference into international industry hubs.

Why this matters: Shanghai is positioning itself not just as a production center but as a global resource allocation hub, intensifying competition with other international gaming clusters while accelerating China’s push up the value chain. The initiative follows strong market performance, with Shanghai’s online games industry generating RMB 170.7 billion ($25 billion) in revenue in 2025, up 9.57% YoY, outperforming the national growth rate. Overseas revenue reached RMB 30.3 billion, growing 13.7% YoY, also above the national average.

Link to original article (Chinese) →

Snail Games faces Nasdaq compliance risk amid heavy losses

Chinese game company Snail Games has received a warning from Nasdaq’s listing qualifications department after failing to meet financial requirements, including maintaining net income above $500,000 in either the latest fiscal year or two of the past three years. Snail Games must submit a compliance plan by May 11, 2026, and, if accepted, will have up to 180 days to regain compliance. After returning to profitability in 2024 with approximately $1.8 million in net income, the company reported a $27 million loss in 2025, erasing cumulative profits since 2019 and marking its weakest performance since listing.

Why this matters: Revenue concentration remains a core issue, with the Ark Survival Evolved franchise accounting for 85% to 91% of total revenue between 2022 and 2025. While the franchise has surpassed 100 million installs as of December 2025, slowing growth has exposed structural reliance risks. Delays to Ark 2 limit near term upside, while other AAA and indie projects have not scaled sufficiently to diversify revenue.

Link to original article (Chinese) →

Moonton investigates Mobile Legends cheat network with Indonesian police support

Moonton investigated and identified the “Senpai Mod” network as a cheat distributor and “NUI Mod” as the primary supplier of illegal software for Mobile Legends: Bang Bang (MLBB). The investigation, which began in September 2023 following community reports, found that Senpai Mod sold cheats such as map hacks and drone-style vision that significantly disrupted competitive balance. Over the past year, thousands of MLBB accounts were sanctioned for using these cheats, in what Moonton described as a rare enforcement effort targeting both the distribution and production layers of cheat software. Moonton acknowledged the support of Indonesia’s Central Java Regional Police in resolving the case through formal legal channels and halting further development and sales.

Why this matters: This case highlights a growing willingness among Asian game publishers to pursue legal enforcement, not just technical bans, against cheat developers. For live service and competitive game operators, it signals higher compliance expectations and the rising importance of collaboration with local authorities to protect long-term player trust.

Link to original article (Indonesian) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

Tencent launched Roco Kingdom: World on March 26, 2026 in China, achieving one of the strongest mobile debuts of the year. Building on the original 2010 PC IP, the game transitions the franchise into a 3D open world pet collection RPG with over 400 pets, turn based combat, and expanded exploration systems. Pre launch momentum was significant, with over 60 million pre registrations, while day one performance reached 15 million players and #1 rankings on China’s iOS download and grossing charts. The title also charted at #8 by viewership on our China Games & Livestreaming Tracker during its first week.

Why this matters: This is Tencent’s attempt at revitalizing a nostalgic IP and building on the success of titles such as Palworld which have evolved the traditional Pokémon formula. The game’s monetization model is also notable for strong emphasis on cosmetic driven spending rather than direct pay to win mechanics. Planned updates include new seasons, expanded maps, additional story content, and a pipeline of over 200 new pets annually, signaling a long term evergreen approach.

Read the highlights →

RELATED: Livestreaming Tracker March 2026 Highlights: Tencent’s New Roco Kingdom: World Breaks into March’s Top 10 RPG Viewership Rankings

RPGs continued to dominate China’s livestreaming scene in March 2026 thanks to Roco Kingdom: World. What’s behind the surge, and what it signals for the market? Read more in Niko’s China Games & Livestreaming Tracker March 2026 Highlights.

Read the highlights →

Indonesia Game Rating System Heavily Criticized on its Rollout

Indonesia Game Rating System sparks criticism following its brief appearance on Steam.The labels have since been removed, with Steam clarifying that the the technical bug and miscommunication were behind the temporary display of IGRS betwen April 2 and April 5. Read the full story in our latest blog post.

Read the blog post →

RELATED: Indonesia’s lower purchasing power was revealed as Steam released a new regional pricing guidance

On March 31, through Steamworks update, Valve’s Steam platform highlighted that its appeal in markets such as Indonesia is strongly driven by discounts and regional pricing aligned with local purchasing power. Steam has introduced a new pricing guidance tool for publishers, leveraging support for more than 35 currencies including the Indonesian Rupiah (IDR), to help set regional prices using a USD reference. The tool offers three pricing reference methods: direct currency conversion, a purchasing power based model that suggests Indonesian pricing at around 30% of the original USD price.

Why this matters: Steam’s updated regional pricing guidance underscores the growing importance of emerging PC markets like Indonesia, where purchasing power constraints are shaping platform level tools and publisher monetization strategies. Wider adoption could influence launch pricing norms and revenue optimization across Southeast Asia.

Link to original article (Indonesian) →

Tencent to take full control of Dungeon & Fighter Mobile development and publishing

Nexon has announced that operations of Dungeon & Fighter Mobile in China will transition from a dual management structure to a fully Tencent-led model. Previously, Nexon subsidiary Neople oversaw live service operations while Tencent handled localization, publishing and marketing. Under the new structure, Tencent will assume full responsibility for live operations in China, while existing structures for the PC version remain unchanged.

Why this matters: The shift reflects an expansion of the existing partnership between the two companies and comes at a critical time, as Nexon recently reported declining revenue from Dungeon & Fighter Mobile. Centralizing operations under Tencent is intended to streamline decision making, improve localization quality, and accelerate content cadence in China, which remains one of the largest and most competitive mobile game markets globally.

Link to original article →

Memory contract prices set to surge despite temporary drop in consumer prices

Recent declines in DDR5 consumer memory prices, down as much as 30% in the US and China, are expected to be offset by tightening conditions in the enterprise segment, with TrendForce projecting DRAM contract prices to rise 58% to 63% QoQ in Q2 2026. The increase is driven by surging demand for high capacity RDIMMs used in AI infrastructure, as hyperscalers and enterprise clients prioritize data center deployments. Despite this short term consumer price correction, structural supply constraints remain intact.

Why this matters: The supply imbalance is also impacting the GPU market, where limited allocation of GDDR6 and GDDR7 is expected to constrain production of gaming graphics cards, leading to higher prices and potential shortages in the coming quarters. This is particularly relevant as PC gaming demand stabilizes post pandemic, but faces renewed cost pressures on hardware. The sustained pressure is expected to dampen upgrade cycles and slow high end PC gaming growth.

Link to original article →

UAE Ministry of Culture opens fifth cycle of National Grant program

The UAE Ministry of Culture has launched the fifth cycle of its National Grant Programme for Culture and Creativity, expanding support for Emirati talent across sectors including games, film, music, and design. Applications are open until June 26, 2026, with the initiative positioned as a key funding mechanism to transform creative concepts into commercially and culturally viable projects.

Why this matters: Participation has steadily scaled across previous cycles, with 26 beneficiaries in the first round, increasing to 43 in the second, 44 in the third, and 41 in the fourth cycle completed in December 2025. This initiative is particularly significant as the UAE continues to position itself as a regional hub for game development and creative industries under broader economic diversification strategies.

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Super Mario Galaxy Movie opens to $372m globally

The Super Mario Galaxy Movie, produced by Nintendo, Illumination, and Universal Pictures, generated an estimated $372.5 million globally within its first five days, debuting at No.1 in North America. The film earned $190.1 million domestically over five days alongside $182.4 million across 80 international markets, spanning 54,000 screens at 23,500 locations. Nintendo is also leveraging the film launch to drive hardware and software sales with a $20 discount when purchasing the Nintendo Switch 2 alongside Super Mario Galaxy 1 and 2.

Why this matters: The performance builds on the success of The Super Mario Bros. Movie (2023), which generated nearly $1.4 billion globally, establishing Mario as one of the most commercially successful video game IP adaptations in film. Notably, the new film has yet to release in Japan, where it is scheduled for April 24, suggesting additional upside in one of Nintendo’s core markets. Nintendo is continuing to diversify beyond its traditional console business into movies, TV shows, merchandise, and even theme parks.

Link to original article →

Nexon to publish Overwatch in Korea through partnership with Blizzard

Nexon has entered a publishing agreement with Blizzard Entertainment to operate Overwatch in South Korea. The partnership will see Nexon manage live service and business operations for the PC version in Korea, while Blizzard retains control over core development and the global IP. The collaboration emphasizes “hyper localized content” and a renewed focus on Korea’s internet gaming room ecosystem. Nexon will leverage its local expertise in live ops, monetization, and player management to tailor the experience for Korean users, while both companies plan to recruit additional local talent to support ongoing operations.

Why this matters: This move reflects Blizzard’s increasing reliance on regional partners to optimize performance in key markets. Korea has historically been a stronghold for Overwatch and competitive shooter titles, but shifting player preferences, the rise of competing games, and changes in the PC bang ecosystem have required more localized strategies to maintain engagement. It’s also worth noting that Nexon has experience operating live service shooter titles such as Sudden Attack and Arc Raiders in Korea.

Link to original article →

Logitech apologizes for insensitive Douyin ad

Logitech has issued a public apology after a promotional video on its Douyin account triggered backlash in China for allegedly insulting consumers. The account published an advertisement for a computer mouse captioned: “When you say, ‘I won’t spend another cent,’ the moment I lower the price, you still come running like dogs.” The ad was interpreted as demeaning and quickly drew criticism from users on Douyin. Logitech stated that its Douyin page is operated by a third party and that the content was published without approval.

Why this matters: Despite the clarification, consumer dissatisfaction has persisted, reflecting limited tolerance among Chinese users for perceived disrespect from brands, particularly foreign companies. Douyin is a critical ecommerce and marketing channel, where viral sentiment can rapidly influence brand perception and sales performance. Missteps in tone or messaging can escalate quickly, especially given the platform’s scale and algorithm driven amplification.

Link to original article →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

RPG titles dominated China’s livestreaming landscape in March 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that RPG games remained one of the most-watched genres in China’s livestreaming market in March 2026. Roco Kingdom World is the primary driver of the genre’s overall performance, its strong initial visibility underscores the impact of large pre-registration bases and the 16 years old Roco Kingdom IP familiarity on first-month livestreaming traction. Read our quick take on the standout title from this month’s top 10 shooter games, based on the Niko Index, our proprietary metric for estimating total viewership across games, streamers, and categories.

Tencent’s Roco Kingdom series, garnered 9.2 million viewers across Huya, Douyu, and Bilibili in March. This was mainly driven by Roco Kingdom World, a F2P cross-platform mobile/PC game that was launched on March 26 across Harmony OS, iOS, Android, TapTap, WeGame and its official website. Notably, the title had surpassed 60 million pre-registrations and within 13 hours of launch, the game attracted over 15 million new players. It quickly topped both the iOS free and grossing charts for several days, becoming a breakout hit among childhood IP-based mobile games. By day nine, the total number of registered users across platforms had exceeded 30 million.

• The title holds a 6.6 rating on TapTap and an 83.6% recommendation rate on WeGame.

• Part of the title’s reception attributed to its presence of multiple closed and large-scale beta tests during the long six-year development cycle helped sustain player awareness and build a pre-engaged audience.

• The comment sections suggest that the official launch has attracted a significant number of returning players from the original 4399 web version, highlighting strong nostalgia appeal. Building on the original 2010 PC IP, the game transitions the franchise into a 3D open world pet collection RPG with over 400 pets, turn-based combat, and expanded exploration systems.

The above is an extract from our China Games & Livestreaming Tracker March 2026 summary. See the free sample here.

Niko Partners’ China Games & Livestreaming Tracker views all current and historical data in our dashboard, updated every 24 hours. Niko’s Analysts write and post monthly analysis of key trends and data observed in the Tracker to help our clients with important insights. Learn more about the platform here. Book your free demo!

During the first week of April 2026, Indonesian gamers noticed that PC game distribution platform Steam started to show new age ratings for all games. Call of Duty had been issued a 3+ rating despite its violent content, Story of Seasons had received an 18+ rating despite being a farming simulation game, and Grand Theft Auto V had been refused classification altogether. The new labels and ratings are part of the Indonesia Game Rating System (IGRS) introduced by the country’s Ministry of Communication and Digital Affairs (Komdigi, formerly Kominfo).

IGRS is based on Indonesia’s Ministerial Regulation No. 2 of 2024 on Game Classification, a follow up of the Presidential Regulation No. 19 of 2024 on the Acceleration of National Games Industry Development which Niko covered previously. The update to the classification system comes at a time when countries are taking a more hands-on approach towards online content that may be inappropriate or harmful for children. Komdigi has spent the past couple of years working with various game distribution platforms and the International Age Rating Coalition (IARC) to ensure stores such as Steam, the PlayStation Store, and Google Play can adopt the system. In theory, this means that games already registered with IARC should automatically receive an equivalent rating under the IGRS.

IGRS includes 5 main categories (3+, 7+, 13+, 15+, and 18+) as well as the “Refused Classification (RC)” category. While the Indonesian Game Association (AGI) stated that the regulation aims to act as a guideline, not a restriction, it should be noted that the Ministerial Regulation No. 2 of 2024 Article 20 mentions that the ministry can implement an administrative sanction in the form of access denial, which is essentially a rating-based ban. An RC classification would currently result in a game being unavailable for purchase in Indonesia, or as Steam itself puts it, “Steam will no longer be able to display games to customers in Indonesia if the game is missing a valid age rating.” This has the effective function of a ban for games that receive an RC rating for the Indonesian market.

Source: instagram.com/gameratingid

Following confusion from developers and backlash from players after the rating’s implementation on Steam, Komdigi issued a statement clarifying that the IGRS ratings shown on Steam beginning last week were not final, noting that “the ratings circulating on the platform are not official IGRS results, potentially misleading the public regarding age-appropriate content for children.” Following the ministry’s published statement on April 6, Steam also removed the IGRS ratings from its website and platform.

This is not the first time Komdigi has been perceived to backtrack from its policies after receiving negative feedback, as seen in 2022 when the ministry banned game platforms including Steam and Epic Games Store for not following its PSE rule. This decision was also later reversed following protests from local gamers and game industry stakeholders.

Some of the issues may be a matter of methodology- Komdigi has stated that the age ratings were based on a self-classification questionnaire. Niko Partners has reviewed this questionnaire and found that many of the questions are generalized and binary, “yes / no” questions. In one eccentricity, the question asking whether the game depicts “elements of pornography” has “no” as option 1 and “yes” as option 2, while all other questions have the order reversed, which may cause some respondents to accidentally tick yes in this case.

We’ve also seen concerns that the ministry’s Special Staff are confusing user ratings with age ratings, based on the X (formerly Twitter) posts. Both cases showcase how the system’s QA and management process remain a work in progress with developments expected to be forthcoming.

The IGRS labels have since been removed from Steam, with Valve now working with the ministry to cooperate on a more formal approach to implement the system without mass confusion. Roblox also recently announced it has adopted IGRS for its platform, and more platforms are expected to support the system going forward.

According to Niko Partners’ research, nearly 90% of players in Indonesia believe governments should regulate content for children, giving the ministry a mandate to roll out its own platform. Still, while the majority of players Niko surveyed in Indonesia are aware of IGRS ratings, many have concerns that primarily revolve around uneven implementation and uncertainty around whether certain games could be banned.

Indonesia is a large market for video games, with more than $1.1 billion in revenue in 2025 as per Niko’s Indonesia Games Market Report. Steam is a growing platform in the country, but the introduction of a “Refused Classification” category could have a negative impact if the ministry implements it in a way that affects popular titles. We note that these ecosystems are currently fragile, Valve has recently highlighted that Steam’s appeal in markets such as Indonesia is strongly driven by discounts and regional pricing aligned with local purchasing power, so new barriers to access may prove troublesome.

Furthermore, tagging games with the wrong rating could negatively affect the country’s esports industry, with popular esports titles such as Mobile Legends: Bang Bang or League of Legends receiving 18+ rating even though the games are rated as safe for teens in all other country’s rating systems. We will continue to monitor and will include analysis of these policies’ impacts in Niko’s 2026 Indonesia Games Market Report Series.

Screenshots from IGRS website showing game ratings of select games

Niko Partners is carefully watching the development of Indonesia’s games market and industry. We expect the country to grow as a games market and in its game development capacity, barring issues created by policy mishaps and assuming clearer communication between the government and game industry stakeholders, both local and international. If your company wants to understand more about game regulations and gamer behavior in Indonesia, please contact us.

Indonesia is the largest game market by population in Southeast Asia. Dive deep into the market through our SEA-6 Games Market Reports and get regular pulse check on the industry through Niko’s Value-Added News Analysis (VANA). We also offer custom research and consulting services designed to address your specific questions and support strategic decision-making.

Author: Darang Candra, Director for Southeast Asia and East Asia Research at Niko Partners

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 130 domestic games and import games on March 25, 2026. This is the second batch of games approved in 2026 and takes total approvals to 453 domestic games and 14 import games The domestic batch included 127 mobile games, 2 PC games and 1 console / VR game, while the import games list included 2 mobile games games and 1 cross platform games. The most notable game on the list is Tencent’s Animula Nook, a cozy life simulation game that has been inspired by Nintendo’s Animal Crossing franchise. The game had its first major test on March 19, 2026. A total of 4 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN. We expect more than 2,300 video games to be approved this year, with over 100 of them being import games.

Link to original article (Chinese) →

SoftBank and Line Yahoo! expand into video games as the largest shareholder of Kakao Games

Japan’s SoftBank Group, which has expanded ties with Korean companies through investments in Coupang, Yanolja, and LINE Yahoo!, is moving into video games to strengthen weaker areas of its business portfolio. On March 25, 2026, LINE Yahoo! became the largest shareholder of Kakao Games through an investment purpose entity. The investment was supported by capital raised through PayPay’s US IPO, with PayPay jointly owned (66%) by SoftBank Group and LINE Yahoo!, and Kakao Games representing its first major deployment.

Why this matters: SoftBank’s move into gaming via Kakao Games signals a renewed push to pair scalable content with AI and platform services, positioning games as a monetization layer for messaging and fintech ecosystems in Japan and Asia. Publishers and platform holders should watch how Line Yahoo! integrates game IP with messaging, payments, and AI agents, as this could reshape regional distribution and user acquisition strategies.

Link to original article (Japanese) →

NetEase sees backlash to AI generated promotional materials overseas

NetEase owned Starry Studio has faced significant backlash after releasing an AI-generated promotional video for Once Human. The game had strong initial performance following its 2024 launch, where it reached 231,000 peak concurrent users on Steam, but has since seen its player base decline. Criticism was particularly intense on Western platforms, with users highlighting inaccuracies in the AI-generated content and questioning quality control, with some stating the trailer misrepresented in-game environments.

Why this matters: While players remain more accepting of AI when it enhances workflows or enables new features, final shipped content is expected to meet traditional creative standards. There is less backlash overall in China, where casual mobile gaming dominates and AI-driven UGC tools are increasingly integrated into live-service titles, but there is still a vocal contingent of core gamers opposed to it. By contrast, PC and console audiences in Western markets, which skew toward core gamers, exhibit stronger resistance to visible AI-generated content.

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Riot activates Riyadh and Mumbai servers as Valorant Middle East infrastructure remains offline

Riot Games enabled Riyadh and Mumbai servers for Valorant‘s Middle East region on March 26, 2026, following prolonged outages affecting the primary Bahrain and Dubai servers. The disruption began in early March 2026 after damage to Amazon Web Services data centre infrastructure in the UAE, which supports regional services including in Bahrain. During the outage, Middle East players were rerouted to EU servers, resulting in over 100ms latency, packet loss, and unstable matches, with Riot Support formally acknowledging the issue on March 10, 2026 without providing a resolution timeline.

Why this matters: Players can now manually select Riyadh or Mumbai servers for improved connectivity, with Riyadh better suited for Gulf players and Mumbai for South Asia and the eastern Middle East, and access has also been extended to European players. Riot stated that these servers are an emergency continuity measure, with no confirmed plans or timeline for permanently replacing the Bahrain and Dubai infrastructure. It’s worth noting that amazon cloud services was disabled in the UAE after a drone strike on March 2nd.

Link to original article (Arabic) →

NetEase’s Justice Online Mobile to add AI driven UGC story mode tool

NetEase has announced a new AI-powered gameplay system for Justice Online Mobile, with the “Dream Mode” set to launch on April 3, 2026. The feature introduces an AI-driven infinite narrative system, enabling players to create and experience dynamically generated storylines across a wide range of genres, including fantasy, suspense, and romance. At its core, the mode is built around user generated content (UGC) enhanced by AI. However, due to the high computational cost of AI generation, usage is currently capped at five free sessions per player per day, indicating that scalability and monetization models may evolve over time.

Why this matters: Gameplay examples include branching storylines such as competitive events, escape scenarios, or relationship-driven narratives, with the ability to introduce unexpected elements such as summoning creatures or altering outcomes mid-story. For MMOs in particular, this could address long-standing challenges around content cadence and retention, reducing reliance on developer-created updates. More broadly, NetEase’s approach signals a shift toward AI-driven UGC as a core engagement pillar.

Link to original article (Chinese) →

Battlegrounds Mobile India Series 2026 closes in Chennai with Team Soul’s win, record over 600,000 peak viewership

Battlegrounds Mobile India Series (BGIS) 2026, organized by KRAFTON and Tesseract Esports, ran from March 12 to 29 at Sandhya Convention Center (Semi Finals & Survival Stage) and Chennai Trade Centre (Grand Finals), where Team Soul won $105,505 (INR 10 million) from a total $422,020 (INR 40 million) prize pool. The championship day peaked above 600,000 concurrent viewers after Day 2 had already passed 550,000.

Why this matters: Battlegrounds Mobile India (BGMI) continues to remain one of the top mobile games in India and is continuing to build up its esports scene. The Chennai result shows publishers and organizers can still build mass attention around one mobile title, if they pair live finals with strong creator and language coverage. The bigger risk is concentration, because India’s esports business remains heavily tied to less than a handful of top titles, leaving teams, investors, and sponsors exposed to platform or policy shocks.

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Tencent introduces pay in installments for Honor of Kings character skins

Tencent is introducing a new monetization model in Honor of Kings with its Season 43 update, allowing players to acquire high-tier cosmetic skins through installment-based payments. Under the new “pay-to-enjoy first” system, players can access premium legend skins by paying approximately 300 star coins upfront, instead of the traditional ~3,000 star coin full purchase cost. Players gain temporary access (one month) to the skin, with cumulative payments contributing toward eventual permanent ownership if the full amount is paid over time.

Why this matters: This lowers the initial barrier to entry while maintaining long-term monetization potential. Tencent is effectively testing financialization of in-game assets, introducing concepts similar to installment payments seen in fintech and e-commerce. Importantly, the legend skins are not standalone products but enhancements tied to existing base skins, meaning users must already own the original item. The installment system therefore serves as a layered monetization mechanism, targeting high-spending users while also expanding accessibility to mid-tier spenders.

Link to original article (Chinese) →

Chinese language users on Steam reach 50% in February 2026

The February 2026 Steam survey, run by Valve, shows that 54.6% of Steam users had their language set to Simplified Chinese, up from 24% last month. The increase comes as a result of the Chinese New Year period, which led to increased engagement among Chinese users during the holiday. We note that Simplified Chinese was the #1 language used on Steam in 2024, at 33.7% of users. Steam recently set a record of 42 million concurrent users online in January, with the latest record of 42.3 million set on March 22.

Why this matters: While the percentage declined last year, we note that major game launches and holidays typically provide a temporary boost to the figures. Likewise, we expect the percentage of Simplified Chinese users to see a similar drop in March. Notable games at the top of the Steam International charts for China included Slay the Spire 2, Crimson Desert, Death Stranding 2, The Legend of Yong Lin, Climber Animals: Together, and Mewgenics alongside mainstays like PUBG, CounterStrike 2, Apex Legends, Delta Force, and Naraka Bladepoint.

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Roblox plans offline-only access for under-13 users due to Indonesia’s PP Tunas regulation

Indonesia’s Minister of Communication and Digital Affairs, Meutya Hafid, stated that Roblox has informed the government that it is planning feature adjustments that could limit users under 13 to offline-only play as part of compliance with Government Regulation No. 17/2025 on Child Protection in Electronic Systems (PP Tunas), which officially took effect on March 28, 2026. The ministry considers Roblox partially cooperative, noting that the company has not yet confirmed when the changes will be implemented, and that discussions are still ongoing.

Why this matters: Indonesia’s PP Tunas signals a shift toward stricter child protection enforcement that directly affects online multiplayer and social features, setting a precedent that could increase compliance costs and design constraints for global game platforms operating in Southeast Asia.

Link to original article (Indonesian) →

VNG Chairman Le Hong Minh wins seat on Ho Chi Minh City People’s Council

Ho Chi Minh City’s Election Committee announced that Le Hong Minh, founder and chairman of VNG Group, won a seat as a deputy on the city People’s Council for 2026–2031. The result comes as the city is expanding state-backed venture funding and innovation programs for technology startups and high-skill workforce development.

Why this matters: The important point from this is not solely symbolism, but that a leading game founder now has direct visibility into local policy discussions. That could modestly improve dialogue around talent, startup support, and digital business conditions in Vietnam’s main game and internet hub, though no immediate policy shift is guaranteed.

Link to original article (Vietnamese) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

RPG titles continued to lead China’s livestreaming landscape in February 2026. Zenless Zone Zero peaked at 16.9 million views in a single day, while Where Winds Meet experienced a notable surge driven by new cosmetic releases and its Spring Festival Delicacies Collection. Meanwhile, Neverness to Everness built strong momentum ahead of its full cross-platform launch in April. Read the full highlights in our latest blog post.

Read the highlights →

Tencent reports CY2025 earnings

Tencent reported CY2025 revenue of RMB 751.8 billion ($107 billion), up 14% YoY, with net profit reaching RMB 229.8 billion ($32.7 billion), with a profit margin of 31% compared to 30% in the prior year. Tencent’s online games business reached RMB 241.6 billion ($34.4 billion), up 22% YoY, and we estimate that games revenue from social networks and services added an additional RMB 40.8 billion ($5.8 billion) to take total gaming revenue to RMB 282.5 billion ($40.2 billion). Domestic games revenue for the year was RMB 164.2 billion ($23.4 billion). up 17.6% YoY, while international games revenue reached RMB 77.4 billion ($11.0 billion), up 33.4% YoY.

Why this matters: This is the first time that international game revenues have surpassed $10 billion for Tencent, making it larger than most Western AAA video game companies by revenue. Growth was driven by record setting evergreen games both domestically and internationally, including Valorant, Clash Royale and Delta Force.

Niko Partners has recently explored the topic of evergreen games, which refers to a game built around exceptional replayability with no fixed endpoint, allowing players to stay engaged for months or years. Niko Partners has researched, written and published a new whitepaper called The Impact of Evergreen Games on the Global Market, where we describe the rise of evergreen games and what publishers and developers can learn to be ahead of the curve in today’s market. Download the whitepaper for free here.

Link to original article →

Memory shortage to pressure Korean and Japanese game companies

Korean game industry reports indicated that a global memory semiconductor shortage is disrupting the gaming sector, delaying hardware releases, and increasing costs across the value chain. Sony may postpone the PlayStation 6 launch to 2028 or 2029, while Valve faces rising memory prices affecting gaming hardware such as Steam Machines. Major Korean game developers’ cost structure has been deteriorating due to competition between AI and gaming for data center resources resulting in server and cloud infrastructure becoming a primary cost burden in 2026.

Why this matters: Korean game companies that operate live service games, multiplayer servers, and large-scale backend systems are expected to face indirect impacts from memory constraints. The shortage extends beyond hardware supply disruptions, contributing to higher console and PC prices, reduced entry level device availability, and adjustments in pricing for games, subscriptions, and peripherals, thereby increasing overall cost pressures across the gaming market.

Link to original article (Korean) →

Indonesia upholds ruling requiring Google to allow alternative in‑app payment systems

The Indonesian Supreme Court has rejected Google’s cassation request, upholding KPPU’s ruling that the company violated competition laws by requiring developers to use Google Play Billing (GPB) for in‑app transactions. The decision affirms Google’s obligation to pay a IDR 202.5 billion ($12 million) fine and to stop requiring GPB as the exclusive in‑app payment method. KPPU’s investigation, launched in 2022, found Google controlled about 93% of Indonesia’s app distribution market and imposed 15–30 percent commissions under GPB.

Why this matters: Google must now implement User Choice Billing (UCB), enabling developers to use alternative payment systems. This ruling signals increasing regulatory pressure on platform‑controlled payment systems in Southeast Asia, potentially reducing fees and shifting monetization strategies for mobile game publishers. Developers should watch how Google implements UCB in Indonesia, as similar demands may emerge in other regional markets.

Link to original article (Indonesian) →

Apple reduces in-app purchase commission fee for China app store

Apple has reduced its App Store commission fees in mainland China, lowering the standard rate on in-app purchases from 30% to 25%, while cutting fees for small business and mini app developers from 15% to 12%. This is welcome news for game developers, including mini-game developers, which refers to instant games inside larger platforms like WeChat. The move follows increasing regulatory scrutiny and pressure in China, where platform economics and revenue-sharing models have become a focal point for policymakers.

Why this matters: The reduction represents a meaningful margin improvement for developers where the 30% Apple Tax has been the only option available for more than a decade. However, we note that third party Android app store fees can still go as high as 50% in some cases, and there has been no announced reduction from other stores at this point. That being said, the rise of direct distribution, mini games, web stores, and out of app monetization methods have long been utilized by developers to bypass app store commission fees.

Link to original article (Chinese) →

Savvy Games Group to acquire Mobile Legends: Bang Bang developer, Moonton in $6 billion deal

ByteDance has announced that they’ve agreed to sell their gaming unit, and makers of the immensely popular Mobile Legends: Bang Bang, Moonton, to Savvy Games Group for $6 billion. The valuation is a 50% increase from the $4 billion Bytedance spent to purchase Moonton back in 2021. This is a mutually beneficial deal for both parties, as Bytedance has been looking to divest some of its video game related assets over the past few years, while Savvy has been looking to grow its studio portfolio, strengthening Saudi Arabia’s position in the games industry.

Why this matters: Mobile Legends: Bang Bang remains one of the top MOBA games on smartphones today and is also a featured title at the Esports World Cup. However, we do note that Savvy CEO Brian Ward had previously said the company was looking to enter the PC & Console market, which makes the $6 billion acquisition of a mobile studio come as somewhat of a surprise. Savvy had $13.3 billion set aside for M&A since September 2022. Between Scopely’s acquisition in 2023 for $4.9 billion, and now this, $2.4 billion remain for future investments.

Link to original article (English) →

Universal Beijing Resort recreates Genshin Impact‘s Mondstadt

Universal Beijing Resort, operated by Comcast NBCUniversal, has launched its “Universal Infinite Spring” event (running through May 31, 2026), featuring a lineup of prominent Chinese IPs as part of its ongoing localization strategy. Key highlights include the debut of an immersive interactive restaurant, “Chang’an Banquet,” based on the animated film Chang’an, alongside experiential installations inspired by Genshin Impact, including a real-world recreation of Mondstadt. Universal’s strategy highlights how Western entertainment companies are adapting to China’s IP ecosystem.

Why this matters: The initiative reflects a deliberate shift toward integrating locally resonant IP into global theme park ecosystems, with the goal of increasing domestic visitor engagement and repeat visitation. In addition to Genshin Impact, the resort has previously incorporated elements from Honor of Kings, developed by Tencent, signaling a broader partnership approach with leading Chinese content creators. Titles like Genshin Impact are increasingly extending beyond digital platforms into location-based entertainment.

Link to original article (English) →

Chinese voice acting industry pushes back on AI voice usage

China’s voice acting ecosystem is increasingly pushing back against generative AI, as studios and talent move to define legal and commercial boundaries around voice data usage. Leading dubbing agency Qixiang Tianwai, which has contributed to major titles such as Genshin Impact, Honkai Impact 3rd, and Honor of Kings, has issued a formal statement opposing unauthorized use of voice data for AI training, warning that such practices constitute infringement and will be pursued legally.

Why this matters: The dispute reflects a structural tension as AI adoption accelerates across content production. Voice acting, historically a human-centric asset tied to identity and performance, is now vulnerable to low-cost replication and mass distribution via AI models. From an industry perspective, this development signals the early formation of a rights framework for AI-generated content, where stakeholders are proactively establishing boundaries ahead of formal regulation.

Link to original article (Chinese) →

China elevates video games in 15th five-year plan

China’s newly released 15th Five-Year Plan (2026-2030) formally elevates online games alongside web literature, film/TV, and animation as core components of the country’s cultural export strategy. The plan explicitly calls for “promoting high-quality online games to go overseas” while simultaneously emphasizing the need to “guide and regulate healthy development” of the sector, marking a notable evolution in policy positioning. The policy reflects an ongoing industry transition from scale-driven growth to quality-driven development, aligning with broader trends seen across China’s games sector over the past three years.

Why this matters: The language used is different from the 14th Five-Year Plan where games were only briefly referenced within broader digital culture exports. The new framework increases both the frequency and specificity of mentions, embedding games within two key strategic pillars: international export capacity and modern cultural industry system development. This shift signals a more structured approach to leveraging games as soft power tools and export-oriented digital products, while reinforcing regulatory oversight.

Link to original article (Chinese) →

Capcom says it will not implement Generative AI assets into its games

Capcom has clarified that it does not plan to use AI-generated assets directly in its game content, while continuing to test generative AI internally to improve development efficiency. According to comments from the company’s February shareholder meeting, Capcom said it “will not be implementing any assets into [its] video game content,” but is actively evaluating AI applications across graphics, sound, and programming workflows. The company’s stance follows earlier comments from Capcom technical director Kazuki Abe in 2025 that the publisher was experimenting with generative AI during the idea creation process.

Why this matters: This positions Capcom in a middle ground among large video game publishers, highlighting the use of generative AI as a production tool, but not a substitute for creative output, following backlash from users who oppose the use of the technology due to both low quality output and ethical issues. Niko Partners continues to see backlash to generative AI usage, more so in the West than the East, but notes that Asia based game developers are continuing to incorporate the technology and tools into game development processes while being wary of consumer sentiment.

Link to original article (English) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

May 8-9, 2026
Ho Chi Minh City, Vietnam

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

What makes a game evergreen? In general, it’s a game built around exceptional replayability with no fixed endpoint, allowing players to stay engaged for months or years. In our observation, many of the evergreen games in the market come from Asian publishers, and we wanted to explore that.

Niko Partners has researched, written, and published a new whitepaper, The Impact of Evergreen Games on the Global Market, where we describe the rise of evergreen games— defining the term, reviewing reasons they thrive, and what publishers and developers can learn to be ahead of the curve in today’s market. This is a must read for an important topic.

Download the whitepaper here →

Indonesia enforces under-16 ban on high-risk digital platforms beginning March 2026

The Ministry of Communication and Digital has implemented a new regulation prohibiting children under 16 from accessing digital platforms considered “high-risk”. Enforcement begins March 28, 2026, with the deactivation of under‑16 accounts across platforms including YouTube, TikTok, Facebook, Threads, Instagram, X, Bigo Live, and Roblox. Minister of Communication and Digital Affairs, Meutya Hafid, stated that the policy aims to strengthen digital child protection and reduce exposure to risks such as pornography, cyberbullying, and online fraud.

Why this matters: The regulation builds on prior child‑protection rules by introducing mandatory account restrictions for minors, affecting social media, video platforms, and online game platforms such as Roblox. This restriction will materially impact user acquisition and engagement strategies for platforms with large under‑16 audiences, including video games-adjacent services like Roblox. Companies operating in Indonesia should prepare for compliance obligations and shifts in youth traffic patterns across digital ecosystems.

Link to original article (Indonesian) →

U.S. court orders Krafton to reinstate Unknown Worlds CEO after improper dismissal

A U.S. court ruled that Korean publisher Krafton improperly dismissed Unknown Worlds Entertainment CEO Ted Gill and must reinstate him. Krafton had agreed in 2021 to preserve the studio’s independence after acquiring it and to pay up to $250 million in earn-out bonuses if performance targets were met. During development of Subnautica 2, internal forecasts suggested the earn-out would be triggered, prompting Krafton CEO Kim Chang-han to seek guidance from ChatGPT, which informed attempts to renegotiate terms or restructure control.

Why this matters: This ruling highlights increasing legal scrutiny of post-acquisition governance in global game M&A, especially when earn-out structures influence executive decisions. Asian publishers investing overseas should expect tighter oversight on integration practices and greater risk when attempting to renegotiate performance-based payouts.

Link to original article (Korean) →

GDC 2026: The International Lens of Niko Partners - New Blog Post

Niko Partners President, Lisa Hanson, and Senior Analyst, Alex Champlin, were again in attendance at the Game Developers Conference this year. While the mood seemed slightly brighter compared to 2025, the scale of the event and topics in conversation and at panels signaled some changing realities...

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Slay the Spire 2 finds success in China on Steam International

Deck-building roguelike Slay the Spire 2, developed by Mega Crit, has achieved a peak of 574,638 concurrent players on Steam following its Early Access launch on March 5, 2026, according to SteamDB. China has emerged as the largest market for the sequel. According to Video Game Insights, 43% of players are located in China, contributing to 51% of the global player base across Asia, while North America accounts for 25% and Europe 19%.

Why this matters: The title ranked #1 on the Steam international revenue chart in China for the week ending March 10, 2026. Pricing also reflects a regional market strategy: the game is selling for RMB 88 ($12.50) in China, roughly half the $25 US price, matching the launch price of the first title. Unlike the original game, which launched without official Chinese language support, Slay the Spire 2includes full Simplified Chinese localization from day one, covering interface, cards, and narrative text. A key driver of engagement is the introduction of 4-player online cooperative gameplay, which aligns with China’s strong preference for social gaming experiences.

Link to original article (English) →

Fantasy Westward Journey achieves another PCCU record

NetEase has announced that the PC version of Fantasy Westward Journey reached a record peak concurrent user (PCCU) figure of 3.9 million on March 1, 2026 (just read that data point one more time to let it sink in). The milestone marks the fifth time the game has broken its own online player record within eight months, representing a dramatic rise from 2.75 million to 3.9 million concurrent users during that period. The new record also surpasses the title’s previous historical high of 2.71 million concurrent players set in 2012, reaffirming its position as one of China’s most enduring MMORPGs.

Why this Matters: A key driver behind the resurgence is NetEase’s overhaul of the game’s monetization structure. Historically, the PC version operated under a point-card time billing model, charging players 1 point per 10 minutes or 6 points per hour of playtime. NetEase has since introduced F2P servers with unrestricted access, effectively removing a long-standing entry barrier that had limited growth among casual and price-sensitive players. The change has led to a notable influx of new and returning users, helping push concurrency levels to new highs.

Link to original article (Chinese) →

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Tencent uses AI to crack down on account boosting

Tencent has announced upgrades to the security and enforcement systems in Honor of Kings, introducing new AI-driven monitoring tools designed to detect disruptive player behavior and account boosting in real time. The updated system combines AI analysis with human moderation, allowing for 24-hour automated monitoring of in-match behavior across the game’s player base. Under the new framework, the upgraded system can identify negative gameplay conduct such as intentional feeding, AFK behavior, and passive gameplay during matches. Depending on the severity of the offense, players may receive warnings or be automatically removed from the match in real time.

Why this matters: Tencent is also deploying AI-based detection for account boosting, a practice where highly skilled players are paid to raise another player’s rank or performance metrics. According to the company, the detection system analyzes micro-level gameplay patterns, including combo timing, reaction speed, and control inputs, to distinguish between legitimate player performance and boosting activity, even if the booster attempts to mimic the original player’s style. As competitive ecosystems expand, publishers are increasingly using AI to automate behavioral enforcement and maintain competitive integrity.

Link to original article (Chinese) →

Jordan-based developer Maysalward opens new HQ in Amman as it opens a new mentorship program

Maysalward, one of the key game studios and publishers in Jordan, have announced the opening of a new headquarters at Abdali Boulevard in Amman. The new office will be the home of a new mentorship program called The Capsule, which will act as a new workspace for young and upcoming game developers, while also offering them support and expertise from more experienced developers. The studio also used this new launch to tease plans to launch a pre-seed and incubator fund later this year.

Why this matters: Maysalward has been an essential cog in Jordan’s game development ecosystem since its inception, providing many educational programs, support for the community and even helping organize large events such as PGC Jordan. With this new program, they can continue to help grow that ecosystem, which in turn provides new developers who can fill in gaps in the region, such as in Dubai or Riyadh’s flourishing gaming industries.

Link to original article (English) →

Kingshot surpasses $800m in player spending outside China

Century Games mobile strategy title Kingshot has generated $811.9 million in gross player spending during its first year following its global launch on February 22, 2025, according to AppMagic estimates covering App Store and Google Play revenue. Actual revenue is likely higher when including third party app stores and web shop transactions. Kingshot emerged as one of the largest mobile game launches of 2025.

Why this matters: The game demonstrated rapid revenue expansion over its first year, growing from $5.9 million in March 2025, its first full month of operation, to a peak of $102.2 million in January 2026, representing a 1,600% increase in monthly revenue. The title’s monetization has been strongly driven by Western markets. The United States accounts for 43% of lifetime revenue, making it the game’s most valuable market by a wide margin. South Korea contributes 8% of spending and Japan 7%.

Link to original article (English) →

Tencent’s Honor of Kings finally comes back to India

Tencent has launched Honor of Kings in India, marking the title’s entry into the market two years after its global rollout began. The game is published by Level Infinite, Tencent’s Singapore based publishing subsidiary, and will feature new localized content including a hero inspired by Indian cultural traditions. The move represents a renewed attempt by Tencent to establish a presence in India’s mobile MOBA segment following previous regulatory disruptions. Notably, Tencent Games is backing the India launch with a $1.1 million investment.

Why this matters: The game’s earlier international version, Arena of Valor, was banned in India on September 2, 2020 by the Ministry of Electronics and Information Technology as part of a broader crackdown on 117 Chinese-affiliated apps, citing national security and data privacy concerns. Tencent later unified its global MOBA strategy in 2024, transitioning from the Arena of Valor branding to Honor of Kings globally. Authorities increasingly allow games linked to Chinese developers to operate if publishing entities are based outside mainland China and user data is stored locally.

Link to original article (English) →

Apple reduces in-app purchase commission fee for China app store

Apple has reduced its App Store commission fees in mainland China, lowering the standard rate on in-app purchases from 30% to 25%, while cutting fees for small business and mini app developers from 15% to 12%. This is welcome news for game developers, including mini-game developers which refers to instant games inside larger platforms like WeChat. The move follows increasing regulatory scrutiny and pressure in China, where platform economics and revenue-sharing models have become a focal point for policymakers.

Why this matters: The reduction represents a meaningful margin improvement for developers where the 30% Apple Tax has been the only option available for more than a decade. However, we note that third party Android app store fees can still go as high as 50% in some cases, and there has been no announced reduction from other stores at this point. That being said, the rise of direct distribution, mini games, web stores, and out of app monetization methods have long been utilized by developers to bypass app store commission fees.

Link to original article (English) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

Women are no longer a niche demographic in Asia and MENA’s games market. On International Women’s Day 2026, Niko Partners, a certified woman-owned business, celebrates the growing influence of women shaping the regions’ games industry. In this IWD-special blog post, we explore Asia’s women-oriented games market and how developers and publishers can engage this powerful audience, which we project will account for more than 40% of gamers across Asia and MENA this year.

Read the blog post →

Chinese game developers replace Japanese voice actor over controversy

On March 2, Papergames confirmed that Japanese voice actor Takuya Sato’s contract for the character Li Shen in Love and Deepspace will end in June 2026. The following day, Hypergryph announced that Sato would also step down from his roles voicing Tsukinogi and 12F in Arknights. The decisions followed the resurfacing of a 2009 personal blog post by Sato referencing a visit to the Yasukuni Shrine, a Japanese site associated with historical war criminals, prompting backlash among players who argued that public figures working in the Chinese market should be sensitive to historical and cultural issues.

Why this matters: Controversies surrounding the shrine are common in China, with many players seeing it as a redline. This incident once again highlights how culturally sensitive topics, especially those relating to WW2, still play a role in modern day China. Players are vocal about issues like this and developers can face reputational risk themselves for associating with an individual or company that is seen as endorsing controversial figures or locations.

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Marathon launch hit with controversy as the game’s launch map seemingly omits Gulf Arab states

The latest game from the developers of Halo and Destiny, Marathon, finally launched this week after much fanfare across the globe. However, Bungie caught the ire of gamers in GCC states, especially in Saudi Arabia, after their launch map, with specific launch times per country, seemingly omitted the Gulf Arab States. Many Arab gamers felt angry at the decision, with a minority calling for boycotts and cancelling their pre-orders. Prominent games journalists in the region even demanded an apology from Bungie and/or their owners, Sony Interactive Entertainment.

Why this matters: While a minor issue on the surface, the exclusion of less mature gaming markets from launch time maps has been a common issue raised by gamers from these regions in the past. While we cannot pinpoint a single reason why the MENA region was excluded from the launch time map in this case, we continue to see how gamers in the region have grown increasingly frustrated over this pattern, especially as their status in the games industry grows.

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Valve incorporates Indonesia Game Rating System into Steam’s content rating system

The Indonesian government requires all video games entering the local market to adopt the Indonesia Game Rating System (IGRS). To avoid manual submissions for the tens of thousands of games released annually, IGRS is integrating with automated systems—using the International Age Rating Coalition (IARC) for console titles and a separate integration for Steam to cover all games released in Indonesia. On PC, Valve has begun informing developers through Steamworks that an IGRS rating is required for release in Indonesia, with Steam’s updated content survey automatically generating the rating when possible.

Why this matters: The integration of IGRS with global rating systems like IARC and platform tools such as Steam’s content survey shows Indonesia is moving from policy announcements to practical enforcement of local age ratings. Developers and publishers should watch how full IGRS integration will affect launch timelines, compliance workflows, and how gambling‑like mechanics are handled in one of Southeast Asia’s key markets.

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Korea FTC fines Webzen for deceptive character sales ahead of game shutdown

Korea’s Fair Trade Commission issued a corrective order and a fine of KRW 5 million (US$3,400) against Webzen for concealing its decision to terminate the service of the game Master of Garden (Korean title: I Want to Become a Dark Master/어둠의 실력자가 되고싶어) and releasing new characters to induce additional spending. The company had internally confirmed the service shutdown at the end of July 2024 due to declining sales but responded to user inquiries by stating that it was not considering ending the game, while launching 16 new characters for sale in August 2024.

Why this matters: The regulator stated that informing users of false information despite confirming termination constituted misleading conduct designed to entice consumer purchases. This enforcement action highlights growing regulatory scrutiny of deceptive monetization practices in Korea’s mobile gaming market. Publishers and developers operating in Korea should expect tighter oversight on transparency, especially around service shutdowns and in‑game sales.

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Nintendo sues U.S government after tariffs are deemed illegal by Supreme Court

Nintendo has announced that they are suing the current US administration over tariffs that President Trump imposed last year. Following the Supreme Court’s ruling that said tariffs were indeed unlawful on Feb. 20, many other companies have filed similar lawsuits, including Costco and FedEx. The goal is to have the US reimburse Nintendo for all the tariffs they paid since Feb. 1 2025. Nintendo’s lawyers wrote “All tariffs collected under the IEEPA Duties must be refunded with interest...”. Sony and Microsoft have yet to launch their own lawsuit.

Why this matters: Nintendo has been hit with a number of headwinds over the past year, from high tariffs, to surging memory prices, and other global macroeconomic conditions that have impacted the launch of its Switch 2 console. While a win would be unlikely to change conditions for consumers, it could set a precedent for other game related companies to raise the issue as well. It will also be interesting to see how much Nintendo seeks in damages, as a large number would provide perspective on how damaging Nintendo viewed the tariffs to be for to the Switch 2’s launch.

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Chinese video game companies turn to criminal prosecutions for game leaks

Authorities in Shanghai have launched the city’s first criminal investigation into video game content leaks, arresting three suspects accused of distributing unreleased material from titles developed by miHoYo. The case involves leaked gameplay footage and character content from Genshin Impact and Honkai: Star Rail, which were uploaded to Chinese video platform Bilibili, private online groups, and gaming wikis. The leaks were first reported to authorities by miHoYo in October.

Why this matters: Historically, game leaks in China have primarily been addressed through platform enforcement mechanisms such as account bans or content removals. However, the case signals a shift toward stronger legal enforcement. The move follows updated guidance issued by China’s Supreme People’s Court in April 2025, which clarified how criminal law can be applied to intellectual property violations, including copyright infringement tied to digital content.

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NetEase acquires 10% stake in social deduction game developer

NetEase has acquired a 10% stake in Hangzhou-based startup Xing Han Ming Kong Network Technology, signaling continued investment in experimental game concepts despite broader restructuring across its global studio network. According to corporate filings, the studio had 18 employees as of 2024. NetEase’s investment centers on the studio’s debut title Celestial Fall. The project reimagines the traditional “Werewolf” style social deduction genre with a significantly higher production budget and presentation quality.

Why this matters: For NetEase, the investment reflects a broader strategic interest in creating AAA games for genres and concepts that were previously low budget. The project is being developed using Unreal Engine 5, and in January 2026 it was selected for the Epic MegaGrants scheme, receiving $10,000 in development funding. The project highlights how Chinese publishers are increasingly exploring ways to combine AAA production pipelines with social gameplay systems.

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NCsoft to acquire 70% stake in mobile rewards platform JustPlay

NCsoft has agreed to acquire a 70% stake in Berlin-based mobile rewards platform JustPlay for $204.8 million. Founded in 2020, JustPlay operates a play-to-earn mobile rewards platform where users earn real-world incentives such as cash or vouchers for engaging with mobile games and apps. Data from Appmagic estimates that the company’s flagship app, JustPlay: Earn Money or Donate, has generated more than 33 million installs globally. The acquisition forms part of NCsoft’s broader strategic pivot into casual and mobile gaming.

Why this matters: NCsoft is primarily known for its core MMORPG franchises such as Lineage and Guild Wars, but recently established a dedicated mobile casual gaming segment in 2025. By securing a controlling stake in JustPlay, NCsoft gains access to a user acquisition and monetization platform that connects game engagement with real-world rewards, an increasingly common model within casual mobile gaming ecosystems. The platform effectively functions as a distribution and retention layer for casual games.

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Shinji Mikami founds new AAA studio

Veteran game director Shinji Mikami has established a new independent AAA studio called Unbound. The studio is focused on developing original IP for console and PC, positioning itself as a mid-sized AAA developer targeting immersive single-player experiences. Unbound currently employs approximately 50 staff members, with plans to expand to around 150 employees as development progresses.

Why this matters: The launch of Unbound follows Mikami’s departure from Tango Gameworks in February 2023, where he previously led projects including The Evil Within. Unbound reflects a continuing trend of high-profile Japanese developers launching independent studios after leaving large publishers. With a targeted mid-sized structure, such studios aim to deliver premium-quality games without the overhead of large AAA teams.

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NetEase set to cut funding to Nagoshi Studio amid overseas strategy shift

NetEase has reportedly decided to halt funding for Gang of Dragon, a title being developed by Nagoshi Studio led by industry veteran Toshihiro Nagoshi. According to internal reports cited by employees, the decision follows NetEase’s discovery that the project would require an additional ¥7 billion ($44.4 million) to reach completion. Funding is expected to be cut in May 2026. Gang of Dragon is an action title featuring Ma Dong-seok, known internationally for roles in Train to Busan, The Outlaws, and Eternals.

Why this matters: The project was positioned as one of NetEase’s high-profile overseas AAA investments following the company’s aggressive global studio expansion in the early 2020s. The situation reflects a broader shift in strategy among major Chinese publishers. Both NetEase and Tencent previously invested heavily in establishing or funding overseas studios to accelerate AAA development capabilities. However, many of these projects have faced long development cycles, rising production budgets, and uncertain commercial timelines, leading publishers to reassess return-on-investment expectations.

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Events

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March 18, 2026
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India Gaming Show

April 17-19, 2026
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Capcom reported that Resident Evil Requiem sold 5 million copies within five days of release, making it the fastest-selling launch in the franchise’s history. The milestone surpasses the early sales trajectories of Resident Evil Village, as well as the remakes of Resident Evil 2 and Resident Evil 4. Capcom attributed part of the title’s reception to its proprietary RE Engine, which enables high levels of photorealistic rendering such as detailed character skin, tears, and hair simulation. The Resident Evil franchise has become one of Capcom’s most reliable commercial pillars, with the series surpassing 150 million units in cumulative lifetime sales across mainline entries, remakes, and spin-offs in recent years.

Why this matters: Capcom built strong pre-launch momentum through high quality trailers and an announcement shortly before release that Leon S. Kennedy would return to the franchise. The game has received positive reviews from gamers and critics alike and continues the growth trajectory that Capcom has seen with Resident Evil games over the past decade. On PC, the title reached a record peak of over 344,000 concurrent players on Steam, signaling strong engagement from the platform’s global audience. Requiem also demonstrates that Capcom is able to see strong success with premium single player titles in a market that is increasingly being cannibalized by live service evergreen games.

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Video games see local server outage in Bahrain and the UAE

The 2026 Iran conflict is scary and very difficult for all, and our hearts go out to all the people in the region who are directly impacted. Less importantly yet relevant for Niko Partners, the conflict has had an immediate impact on the video game industry with players reporting local server outages for video games such as Valorant, Fortnite, Rocket League and EA FC in Bahrain and the UAE. The temporary shutdowns came after Amazon Web Services reported drone strikes on three facilities across the two countries. Players are being forced to use European servers, which have a higher ping compared to local servers.

Why this matters: The escalating conflict has led to a devastating loss of life in the region, and we hope that hostilities will de-escalate and a path toward peace can emerge. The impact on local servers in the region is currently limited to Bahrain and the UAE, with video games that use Dammam servers in Saudi Arabia unaffected. Game companies like Riot have already implemented protection measures to prevent rank penalties for impacted players.

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Xsolla enters Vietnam market through acquisition of WeTaps Corporation

Xsolla has acquired WeTaps Corporation, a Ho Chi Minh City–based publisher holding a G1 license for online game operations in Vietnam. Alongside the acquisition, Xsolla launched its Merchant of Record (MoR) services in the country, positioning itself as the first licensed MoR provider for games in Vietnam. The move provides developers with a compliant entry pathway into Vietnam’s rapidly growing games market. Under the new structure, developers will gain access to an established approval process, localized compliance management, and integrated payment infrastructure.

Why this matters: Vietnam’s video game market generated nearly $700 million in 2025 across all platforms, with nearly 60 million players in the country. Regulatory compliance and payments localization remain two of the biggest friction points when entering Vietnam, and Xsolla is looking to create a single solution for global developers looking to enter the market. The platform supports at least five major local payment methods, including MoMo, ZaloPay, and Napas, alongside localized customer support and optimized revenue-sharing structures. Monetization is a key factor in how video game publishers and developers generate revenue. Niko Partners co-published a white paper with Xsolla exploring the monetization landscape in MENA.

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Indonesia launches DARA platform to address youth gaming addiction

The Indonesian Ministry of Communication and Digital Affairs (Komdigi) has launched Digital Addiction Response Assistance (DARA), a platform aimed at preventing and managing gaming addiction among children. The ministry stated that while the government supports game industry’s growth, it must also mitigate associated risks, noting that 33–39% of Indonesian high school students exhibit moderate to severe gaming addiction. Through its website, DARA provides educational materials on gaming, including the Indonesia Game Rating System (IGRS), and guidance on addressing addiction.

Why this matters: Indonesia’s launch of the DARA platform signals growing regulatory attention to youth gaming behavior in Southeast Asia, highlighting new expectations for safer digital ecosystems. The initiative may also encourage developers and platforms to incorporate more responsible‑gaming tools to prevent gaming addiction.

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Genshin Impact adds voice chat for first time

Genshin Impact added a native voice chat system on February 25 as part of its Luna V update, introducing multiple communication modules including Lobby, Party, Room, and In-Match voice channels. The feature is designed to streamline team coordination and improve cooperative gameplay. Previously, players relied heavily on text chat or third-party voice tools, which created friction, especially on mobile devices where text input occupied significant screen space and disrupted gameplay flow. However, the update has also triggered debate due to language in the game’s privacy policy stating that voice communications may be used to train AI models.

Why this matters: While players can opt out of such data usage, the clause has generated community concern around data privacy and transparency. It’s likely that the training refers to moderation, voice recognition optimization, or safety systems rather than character voice synthesis, but the ambiguity has fueled backlash from certain player segments. From a strategic perspective, the introduction of native voice chat reflects miHoYo’s continued investment in deepening social infrastructure within its flagship live-service title. As cross-platform play between PC, console, and mobile becomes standard, integrated communication tools are increasingly expected in large-scale RPG ecosystems.

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Japan’s HUNTER×HUNTER NEN×SURVIVOR reaches 1.7 million global downloads

Bushiroad Inc. and WonderPlanet Inc. announced that their jointly developed mobile game HUNTER×HUNTER NEN×SURVIVOR has exceeded 1.7 million downloads worldwide within a week of its February 18, 2026 release. The action-survival title targets the global HUNTER×HUNTER fanbase, which have seen the total comic series sales, including digital editions, surpassing 84 million.

Why this matters: The rapid early adoption highlights the continued strength of major manga IP in driving mobile game traction in Japan and globally. This level of engagement may signal further opportunities for cross-media expansions and live service monetization tied to legacy franchises.

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Unity considering sale of its China business

Unity Technologies is reportedly exploring a potential sale of its China operations at a valuation exceeding $1 billion, signaling a significant strategic pivot in one of the world’s largest game development markets. Unity has held a dominant position in China since entering in 2012, with major titles such as Honor of Kings built on its game engine. The company’s China operations are estimated to generate annual revenue in the hundreds of millions of dollars. As of mid-2025, Unity China reported 4.5 million cumulative registered developers.

Why this matters: Unity China was formally established as a joint venture in 2022, backed by prominent investors including Alibaba Group, China Mobile, miHoYo, and ByteDance. The China Edition of the Unity Engine operates separately from the global version, tailored to local regulatory and ecosystem requirements. Operationally, Unity China’s Create business, its engine licensing segment, grew nearly 50% YoY in 2025. A potential divestiture would reshape the competitive landscape for game engines in China, potentially creating greater localization autonomy or altering governance structures.

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RELATED: Unity Asset Store will no longer list content from Greater China publishers

Unity has announced that assets created by publishers based in China, Hong Kong, and Macau will be removed from the Global Unity Asset Store starting March 31, 2026. The decision follows updated regional licensing, distribution, and compliance requirements affecting publishers in the Greater China region. The move follows the removal of the Unity 6 game engine from the region last year, with a customized Unity Engine created for the China market taking its place. The delisting of assets represents a further decoupling between Unity’s global infrastructure and its China-specific development environment.

Why this Matters: While users will no longer be able buy assets from Chinese publishers, they will still be able to download them. For the industry, this change has significant implications for cross-border development workflows. Chinese developers will increasingly rely on localized marketplaces and toolchains rather than Unity’s global ecosystem, potentially fragmenting asset distribution and collaboration pipelines. For Unity, the move reflects the growing complexity of operating global developer platforms under divergent regulatory and licensing environments.

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Mid-sized Korean game developers face early closures and restructuring amid market slowdowns

Several Korean small and mid-sized game developers have implemented restructuring measures or early service terminations amid reduced startup investment and competition in the mobile game market. Notable cases include layoffs at Clover Games after the underperforming launch of its RPG HEAVENHELLS, Webzen’s suspension of operations for Dragon Sword following a dispute over unpaid advance payments, JoyCity’s reduced staffing for STARSEED: Asnia Trigger, and service termination for Kakao Games’ published game Goddess Order as the game’s developer, PixelTribe, entered bankruptcy proceedings.

Why this matters: As investment contracted following the pandemic period, unsuccessful launches increasingly led to studio level financial distress. Furthermore, hiring in development and art roles has also slowed amid the adoption of AI tools.

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My Garden World tops WeChat Mini Game charts during CNY

My Garden World, developed by Xiamen Linbei Interactive, surged to number one on the WeChat Mini Game grossing chart starting Chinese New Year’s Eve (February 16) and has maintained the top position throughout the Spring Festival holiday. My Garden World centers on casual gameplay, flower cultivation and shop management, featuring daily planting, watering, harvesting, and order fulfillment mechanics with a soft, therapeutic art style. The game initially launched as an app in August 2025 with modest results. Its initial inflection point came after the September launch of a WeChat Mini Game version, combined with a National Day campaign offering real-world flower bouquets as rewards, which pushed it into the Mini Game top five.

Why this matters: The performance is notable given that the WeChat Mini Game rankings have more recently been dominated by large publishers and core genres such as strategy, MMO, and simulation, with midcore strategy game Whiteout Survival from Century Huatong being a long-standing success on the platform. While flower shop simulation is not a novel concept, the title differentiated itself by explicitly targeting female users. Low-cost micro-lottery events priced at RMB 3 per draw offered practical in-game rewards, broadening participation across spending tiers. Female-oriented Mini Games remain underrepresented in the top ranks despite clear demand signals.

Link to original article (Chinese) →

Events

GDC Festival of Gaming

March 9-13, 2026
San Francisco, USA

Attendees: Lisa Hanson, Alexander Champlin

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

SEGA announced that SEGA FOOTBALL CLUB CHAMPIONS 2026 (SFCC 2026), which is available on PlayStation 5, PlayStation 4, iOS, Android, and PC (Steam), has surpassed 2 million downloads. To commemorate this milestone, SEGA will reward players with in-game items from February 20 to March 22, 2026. SFCC 2026 is the latest installment in the long-running soccer simulation series. It was released on January 22, 2026. The game focuses on player development and club management, with players acting as team managers.

Why this matters: The game offers a free-to-play (F2P), cross-platform, and cross-play football management experience across mobile, PC, and console. The low graphic requirements also make it popular among Asian sports/football gamers, most of whom are mobile-first and tend to lean to more casual games.

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UAE video game regulator strengthens oversight on child safety and advertising regulations

The UAE’s National Media Authority stated that electronic video games will receive licenses only after confirming they align with Emirati societal values and national identity. During a session of the UAE Children’s Parliament, the Authority reiterated that its “Advertiser License” prohibits using children to gain followers or increase online reach, emphasizing that global game developers must adhere to and enforce the UAE’s age rating requirements. The Authority further reaffirmed its support for children through the announcement of various empowerment initiatives.

Why this matters: The UAE recently passed its new Child Digital Safety Law that introduced a comprehensive framework to safeguard minors from harmful content and digital exploitation. The statement this month stressed that all these regulations and penalties also apply to video games. The measures also come after Roblox had certain chat and voice features temporarily disabled in September 2025, due to concerns over child safety. Roblox was previously banned in the UAE between 2018 and 2021 before being allowed again, and is now requiring Roblox Corp. to enhance its Arabic moderation tools and implement age checks.

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Krafton appoints Chief AI Officer as it transitions to AI First company

Krafton has appointed Kangwook Lee as its first chief AI officer (CAIO), formalizing AI leadership as the company accelerates its push to integrate artificial intelligence across gameplay, development tools, and long-term research. Krafton said the newly created role is intended to centralize strategy and execution across AI-driven gameplay systems, internal productivity tools, and experimental initiatives. Lee has led Krafton’s AI efforts since 2022 as head of Krafton AI, and his elevation signals a shift from exploratory R&D to company-wide operationalization, aligning AI more directly with product development and studio workflows.

Why this matters: The appointment follows Krafton’s 2025 declaration that it aims to become an “AI First” publisher. Shortly after that announcement, the company launched a voluntary resignation program, framing it as an opportunity for employees to reassess their “growth direction” amid structural changes driven by AI adoption. Krafton has since emphasized three parallel AI focus areas: enhancing player-facing gameplay experiences, supporting development teams through tooling and automation, and pursuing longer-horizon experimental research.

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Tencent’s Peacekeeper Elite surpasses 90m DAU during Chinese New Year

Tencent’s flagship mobile battle royale game in China, Peacekeeper Elite, recorded a major engagement milestone during the 2026 Chinese New Year period, with daily active users (DAU) reaching 90 million on Chinese New Year’s Eve. Notably, the game’s UGC-focused module, World of Wonder, also set a new record with 58 million DAU, up sharply from 33 million during the 2025 National Day holiday. The surge was closely tied to the game’s 2026 Spring Festival update, themed around “Silk Road Dunhuang.” The content blended traditional Chinese New Year elements with Silk Road civilization motifs, integrating the Year of the Horse into gameplay, environments, and cosmetics.

Why this matters: Peacekeeper Elite topped China’s iOS game revenue chart for three consecutive days starting February 7, highlighting strong monetization alongside engagement. Tencent further amplified momentum through IP collaborations and celebrity-driven campaigns, extending the in-game festival atmosphere into broader social media discourse. The hashtag “Peacekeeper Elite Silk Road New Year” generated 850 million views on Douyin and nearly 200 million views on Xiaohongshu, reflecting substantial visibility. According to our China Games & Livestreaming Tracker, Peacekeeper Elite was the #2 most viewed mobile title for the 14 day period ending February 17.

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Scopely acquires majority stake in Turkey’s Loom Games at valuation above $1 billion

Scopely, a subsidiary of Saudi Arabia’s Savvy Games Group, has acquired a majority stake in Istanbul based developer Loom Games in a deal valuing the studio at more than $1 billion. Loom Games is best known for its hit mobile title Pixel Flow!, which has surpassed 10 million global players and ranked among the top grossing mobile games in the United States. The studio will continue to operate with creative independence while receiving production and distribution support from Scopely.

Why this matters: The deal strengthens Scopely’s footprint across Europe, the Middle East, and Africa and underscores the rising prominence of the Turkish mobile games’ ecosystem. This move also enhances Scopely’s presence in the hybridcasual space. It’s worth noting that Pixel Flow! only released in October 2025, yet has already attracted more than 10 million downloads, and broke into the top 20 grossing games charts in the US app store. Scopely has built a strong portfolio of games via acquisition and IP licensing with Pokémon Go, Stumble Guys and Monopoly Go being its top titles.

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Esports World Cup Foundation has been rebranded as “Esports Foundation”

The Saudi Council of Ministers has amended the charter of the Esports World Cup Foundation, rebranding it as the “Esports Foundation” to mark a shift from tournament organization to broader global esports governance. The Foundation will continue providing technical and operational support for top tier tournaments, backed by major prize pools including $75 million for the Esports World Cup and $20 million for the Esports Nations Cup, alongside strict national representation rules.

Why this matters: The rebrand supports Saudi Arabia’s National Gaming and Esports Strategy and positions the Foundation as an industry wide regulatory and development body rather than a project specific organization. Its expanded mandate includes managing the Esports Nations Cup, standardizing competitive frameworks, and supporting initiatives such as national team development programs and global qualification circuits.

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Qualcomm expands partnership with Hero Esports to promote Snapdragon chips

Qualcomm has signed a strategic partnership with Hero Esports to expand adoption of its Snapdragon 8 Series mobile platform across China’s leading mobile esports ecosystem. Under the agreement, Snapdragon chips will become the official processors for four major mobile esports leagues operated by Hero Esports and owned by Tencent: King Pro League (Honor of Kings), the Peace Elite League, the CrossFire Mobile League, and the QQ Speed Mobile S League. Qualcomm has served as the official chip provider for the KPL since 2021, but this marks the first expansion of the partnership to cover multiple flagship leagues.

Why this matters: The esports competitions in the partnership represent the highest-profile mobile esports properties in China, with large-scale offline events, extensive live streaming reach, and strong ties to device performance standards. All four leagues exclusively use Android smartphones as competition devices, rather than Apple’s iPhone, and going forward they will all use Snapdragon 8 series processors. Qualcomm has long been seen as the premier chip maker in the mobile gaming space and is now reinforcing its position in the world’s largest video game and esports market.

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NetEase parts ways with Anchor Point, and initiates layoffs at Spliced Inc

NetEase has parted ways with another overseas internal studio, as Anchor Point Studios transitions to operate as an independent developer. The studio, which NetEase unveiled in April 2023, confirmed the change through CEO Paul Ehreth, formerly lead designer on Control. Anchor Point maintains offices in Seattle and Barcelona and was originally established to develop premium action-adventure titles for PC and console. At the same time, NetEase owned studio Spliced Inc is set to initiate layoffs according to LinkedIn posts from multiple employees indicating the studio has initiated a redundancy process and warned staff that their roles may be at risk.

Why this matters: Over the past year, the company has shuttered or cut ties with multiple Western studios, including Bad Brain Game Studios, T-Minus Zero Entertainment, and Fantastic Pixel Castle. These actions follow NetEase’s earlier statements that it would prioritize structural efficiency and focus resources on studios and investments with clearer revenue visibility, rather than funding long-cycle AAA development in Western markets. Rising development costs, longer production timelines, and uncertain hit rates have made large-scale overseas incubation less attractive in the current environment.

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Qiddiya City’s RTS now have full control of EVO

RTS, the esports organizer owned by Saudi Arabia’s Qiddiya Investment Company, have announced that they have fully acquired the rights to the Evolution Championship Series (EVO). Initially made co-owner late last year, RTS has since purchased Indian esports organizer Nodwin Gaming’s stake in EVO. Qiddiya will now have full ownership of the most prestigious fighting game competition in esports. Through a press release, RTS has promised that “Evo’s traditions, values, and identity will remain unchanged...” and that key leadership will remain in place.

Why this matters: By taking full ownership of EVO, Saudi Arabia has truly established itself as a leading player in the global esports ecosystem. Saudi Arabia now owns esports brands like ESL and FACEIT, with major tournaments such as the Esports World Cup and Esports Nations Cup being run in the country. While EVO 2026 is scheduled to go ahead in Las Vegas as planned, it is surely a matter of time before a future edition takes place in Saudi. EVO was initially co-purchased by PlayStation and RTS in 2021, before the Sony entity divested to NODWIN.

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Honor of Kings announced $5.9 million creator program in Indonesia

Honor of Kings announced the HOK Indonesia Creator Program 2026, committing IDR 100 billion ($5.9 million) in cash grants and an equivalent amount in in‑game items and coupons to support creator participation and ecosystem growth. The program aims to strengthen the Indonesian community ecosystem through support for community activations, content creation, events, and in‑game resources. Creators participating in the program will receive benefits including early access to game content, direct communication channels with developers for feedback, and official verification.

Why this matters: Similar strategies were launched in Malaysia and the Philippines last year with smaller investment amount. Honor of Kings’ sizable investment signals intensified competition for creator mindshare and community building in Indonesia. The scale of commitment suggests Tencent is preparing to strengthen HOK’s regional presence, challenging existing MOBA ecosystem leaders.

Link to original article (Indonesian) →

Events

GDC Festival of Gaming

March 9-13, 2026
San Francisco, USA

Attendees: Lisa Hanson, Alexander Champlin

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

Escape from Tarkov, developed by Battlestate Games, has announced a crossover collaboration with Escape from Duckov, marking a rare and notable partnership for the hardcore extraction shooter title. The collaboration, launched to coincide with Chinese New Year, introduces new crossover-themed content in both titles and reflects Battlestate’s willingness to engage with a game that openly parodies its own design foundations. Alongside the collaboration, Battlestate implemented a China-specific pricing adjustment for Escape from Tarkov, reducing the standard edition price from RMB 285 to RMB 199, a roughly 30% cut.

Why this matters: Escape from Duckov was one of the most successful PC game launches by a Chinese studio in 2025, surpassing 4 million copies sold to date. More than 70% of its sales came from China, where its humor-driven take on a traditionally punishing genre helped it go viral within the PC gaming community. Despite operating as an unlicensed title in China, Tarkov has built a sizable audience in the market, with an estimated 15% of total sales coming from Chinese players.

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Livestreaming Tracker January 2026 Highlights: Tencent’s New Nizhan: Future Breaks into January’s Top 10 Shooter Viewership Rankings

Shooter titles dominated China’s livestreaming landscape in January 2026, ranking among the month’s most-watched content, according to the Niko Partners China Games & Livestreaming Tracker. While Nizhan: Future was not the primary driver of the genre’s overall performance, its strong debut highlights how large pre-registration bases and familiarity with the Nizhan IP can accelerate first-month livestreaming traction. Read our quick take on this standout title from January’s top 10 shooter games, based on the Niko Index, our proprietary metric for estimating total viewership across games, livestreamers, and categories.

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The International 2026 will be hosted in Shanghai

Valve has confirmed that The International will be hosted in China in summer 2026, signaling a major return of Dota 2’s flagship esports event to the market. TI will take place from August 20-23 at the Oriental Sports Center in Shanghai, a venue with an indoor capacity of up to 18,000 seats. The tournament will feature 16 teams, composed of direct invites alongside squads advancing through Open Qualifiers (June 9-12) and Regional Qualifiers (June 15-28).

Why this matters: Recent editions of TI have rotated through Europe, with TI14 hosted in Hamburg in 2025 and won by Team Falcons, and TI 2024 held in Copenhagen with Team Liquid claiming the title. China’s competitive narrative adds historical context to the Shanghai announcement. Chinese teams have not won TI since 2016, when Wings Gaming took the championship, and the region’s results have been mixed in subsequent years despite a large domestic player base and long-standing Dota 2 presence.

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Honor of Kings to introduce $5.9 million creator program in Indonesia

Tencent’s Honor of Kings has announced the HOK Indonesia Creator Program 2026, committing IDR 100 billion ($5.9 million) in cash grants and an equivalent amount in in-game items and coupons to support creator participation and ecosystem growth. Creators participating in the program will receive benefits including early access to game content, direct communication channels with developers for feedback, and official verification. Similar strategies were launched in Malaysia and the Philippines last year with smaller investment amount.

Why this matters: The program aims to strengthen the Indonesian community ecosystem through support for community activations, content creation, events, and in-game resources. Honor of Kings‘ sizable investment signals intensified competition for creator mindshare and community building in Indonesia. The scale of commitment suggests Tencent is preparing to strengthen HOK‘s regional presence, challenging existing MOBA ecosystem leaders.

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Mattel to fully acquire Mattel163 from NetEase

Mattel has agreed to fully acquire mobile game studio Mattel163 from NetEase, valuing the business at $318 million. The transaction will see Mattel purchase NetEase’s 50% stake in the joint venture for $159 million with the company expecting the deal to close by the end of Q1. Mattel163 was established in 2018 as a joint venture between Mattel and NetEase to develop and operate mobile games based on Mattel’s portfolio of IP. The studio’s titles include UNO, UNO Wonder, Phase 10, and Skip-Bo. Collectively, the portfolio has generated approximately 20 million MAU and surpassed 550 million global downloads.

Why this matters: Mattel stated that the acquisition will materially strengthen its digital games business by bringing core capabilities in R&D, publishing, and user acquisition fully in-house. Following the transaction, the company plans to increase mobile game output, with two new titles already planned for 2026. The deal also comes amid heightened competition in branded mobile games. Rival Hasbro has seen outsized success with Monopoly GO!, developed by Scopely, which surpassed $6 billion in lifetime in-app purchase revenue in 2025. Fully absorbing Mattel163 gives Mattel tighter control over monetization, data, and live operations, while also allowing it to benefit from licensing deals that do not involve NetEase as the developer.

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Esports centers to become skill development hubs under the 2026-2030 esports strategic plan

The Malaysian government plans to reclassify esports centers from public entertainment venues to facilities focused on training, education, and digital skills development under the 2026-2030 Electronic Sports Development Strategic Plan. Youth and Sports. Although some have proposed a dedicated esports act, the ministry does not intend to introduce new legislation; instead, it aims to table amendments to the Sports Development Act 1997 by mid-year to improve sports governance.

Why this matters: Malaysia’s plan to reclassify esports centers and consolidate governance under national standards signals a shift toward more formalized esports infrastructure. Clearer licensing and regulatory alignment could impact venue operators, teams, and developers by shaping investment, compliance expectations, and long-term ecosystem stability.

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ByteDance looking to sell Moonton to Savvy according to report

ByteDance is reportedly in advanced negotiations to sell Moonton, the studio behind Mobile Legends: Bang Bang, to Savvy Games Group for an estimated $6 billion to $7 billion. According to Reuters, sources indicate the parties have reached an initial agreement on broad terms, with a transaction potentially closing by the end of the current quarter. Savvy Games declined to comment, while ByteDance and Moonton did not respond to press inquiries. The talks follow earlier reports from November that ByteDance was exploring a sale of the Shanghai-based developer.

Why this matters: Savvy Games Group has emerged as a key player in video games, acquiring Scopely in 2023. The company is also backed by Saudi Arabia’s Public Investment Fund, who recently announced they would acquire Electronic Arts. ByteDance acquired Moonton in 2021 for $4 billion but started downsizing its gaming division in 2023 after its studios were unable to deliver new hits. Mobile Legends is a key esports title globally, which fits alongside Savvy and Saudi Arabia’s push into esports with the Esports World Cup, making the potential acquisition a fit.

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Sony and Nintendo expected to see impact from memory price surge

Sony may delay the launch of its next-generation PlayStation console as global RAM shortages intensify, according to a new report from Bloomberg. The report suggests Sony is considering pushing the console’s release window back to 2028 or 2029, citing sustained supply constraints and rising component costs driven largely by increased investment in AI. Likewise, Nintendo could also be forced to raise the price of the Switch 2 in 2026 if cost pressures persist. Nintendo president Shuntaro Furukawa acknowledged the risk during a recent earnings Q&A.

Why this matters: The surge in memory prices and restricted supply has been plaguing hardware manufacturers over the past few months and is expected to continue having an impact over the next year at a minimum. Valve, who do not have the same negotiating power as Sony and Nintendo, have already stated that its current Steam Deck is seeing supply issues, and that it has been unable to decide pricing for its upcoming Steam Machine. Niko Partners previously predicted that the Nintendo Switch 2 would see a price increase in 2026, which would impact adoption of dedicated gaming hardware.

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NetEase reports CY2025 earnings

NetEase reported CY2025 revenue of RMB 112.6 billion ($16.1 billion), up 7.0% YoY. Its operating profit was RMB 35.9 billion ($5.1 billion), up 21.1% YoY with an operating margin of 32%, up 4 percentage points from the prior year. Growth was primarily driven by NetEase’s Games and related value-added services segment, which reached RMB 92.1 billion ($13.18 billion), up 10.2%. Revenue from online games was RMB 89.7 billion ($12.83 billion), up 11.6% YoY, while revenue from value-added services such as livestreaming was RMB 2.42 billion ($345 million), down 24.1% YoY. Gross profit for the games segment was RMB 64.2 billion ($9.19 billion), up 11.8% YoY and putting margin at 69.7% compared to 68.7% in the prior year. The increase in online games revenue was primarily due to higher net revenues from Fantasy Westward Journey Online, Identity V and newly launched games Where Winds Meet and Marvel Rivals.

NetEase highlighted that it has achieved comprehensive integration of AI across the full game development cycle, from art and design to programming, animation and quality assurance which also enables the smooth rollout of dynamic, AI-native gameplay features in multiple flagship titles. NetEase also pointed to sustainable growth of its franchises, pointing to strong performance across Fantasy Westward Journey franchise, Identity V, Eggy Party, Justice Online and Where Winds Meet, which continued to introduce high-quality content and maintain healthy player communities.

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Arknights: Endfield generates $173 million in just two weeks

Arknights: Endfield, developed by Chinese studio Hypergryph, has generated more than RMB 1.2 billion ($173 million) across all platforms within two weeks of its global launch. In China, PC accounted for nearly 60% of total revenue, while in overseas markets, combined PC and PS5 revenue contributed as much as 70%. These figures reflect the platform where transactions occurred rather than exclusive playtime, as the game supports full cross-play and cross-progression across devices.

Why this matters: The platform mix is particularly notable in the context of Chinese-developed games, which have historically been dominated by mobile-first monetization. Endfield‘s performance suggests that a growing share of global players, including in China, are willing to spend on PC and console when production values, gameplay depth, and IP strength justify the experience. According to our China Games & Livestreaming Tracker, Arknights: Endfield has been the #6 most viewed title across Douyu, Huya and Bilibili during its first three weeks on the market, making it the #1 RPG game on the tracker.

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Tencent relaunches QQ Farm as a mini game

QQ Farm Classic officially returned to China on February 6, relaunching across QQ and WeChat Mini Game channels, and quickly emerged as an early 2026 breakout. By February 10, the title reached number five on the WeChat Mini Game grossing chart, signaling strong monetization momentum just days after launch with over 35 million users accessing the game. The revival is developed by Tencent’s Morefun Studio, the original team behind QQ Farm, bringing both nostalgic elements and design continuity to the project.

Why this matters: Originally launched in May 2009, QQ Farm was one of China’s most influential early social games, often compared to FarmVille, and peaked at roughly 23 million DAU during the height of China’s social gaming boom. Built directly into QQ and WeChat, friend-based interactions such as visiting farms, helping with tasks, or “stealing” crops are frictionless. Stealing your friends crops was a major feature of the original game. QQ Farm Classic demonstrates the continued power of legacy IP, nostalgia, and mini game distribution in China.

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Events

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San Francisco, USA

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Shooter titles dominated China’s livestreaming landscape in January 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that shooter games remained one of the most-watched genres in China’s livestreaming market in January 2026. Although Nizhan: Future is not a primary driver of the genre’s overall performance, its strong initial visibility underscores the impact of large pre-registration bases and Nizhan IP familiarity on first-month livestreaming traction. Read our quick take on the standout title from this month’s top 10 shooter games, based on the Niko Index, our proprietary metric for estimating total viewership across games, streamers, and categories.

A subsidiary of Tencent, TiMi J3 Studio’s Nizhan: Future ranked as the #30 most-viewed game on our Niko Index chart, and at #8 when isolating the shooter genre, amassing a total of 12.6 million viewers across Huya and Bilibili in January. The licensed F2P cross-platform PC/mobile game was launched on January 13 across App Store/Android, TapTap, and 4399 Game Box. Notably, Nizhan is a longstanding Tencent IP on PC. Meanwhile, the mobile title had already exceeded 20 million pre-registrations nationwide prior to its launch, and its popularity translated directly into a massive influx of traffic in its first month online.

The reviews have been generally neutral on TapTap, with a review score of 5.9/10. Many players criticized the game for being pay-to-win to make progress. A “nostalgia-driven cash grab” that exploits long-time fans of the Nizhan IP. Despite extensive playtime, they argue the game delivers shallow, repetitive PvE content, poorly balanced PvP (limited to mech combat), and outdated gameplay design philosophies.

Nizhan: Future continues Tencent’s trend of PC-to-mobile game adaptations, and Tencent now captures 5 of the top 10 shooters by viewers in China, with Delta Force leading the way. Notably, Tencent titles also dominate battle royale games, with Peacekeeper Elite being the top title here. Meanwhile, Nizhan: Future stands out in this crowded space with its longstanding IP and cross-platform adoption.

The above is an extract from our China Games & Livestreaming Tracker January 2026 summary. See a free summary sample here.

Niko Partners’ China Games & Livestreaming Tracker views all current and historical data in our dashboard, updated every 24 hours. Niko’s Analysts write and post monthly analysis of key trends and data observed in the Tracker to help our clients with important insights. Learn more about the platform here. Book your free demo!

When Valve announced its Steam Machine desktop PC and Steam Frame VR headset in mid-November of last year, it declined to announce pricing or availability information for either device. That was partly because RAM and storage prices had already begun to climb due to shortages caused by the AI industry’s demand for memory. Those price spikes have only gotten worse since then, and they’re beginning to trickle down to GPUs and other devices that use memory chips. This week, Valve announced that it’s still not ready to make an official announcement about when the Machine or Frame will be available or what they’ll cost.

Daniel Ahmad, Director of Research & Insights at Niko Partners spoke to Ars Technica to explain why pricing has yet to be announced. “Large console makers like Sony and Microsoft can commit to tens of millions of orders, and have strong negotiating power,” Ahmad pointed out. The Steam Machine, on the other hand, is “a niche product that cannot benefit in the same way when it comes to procurement,” meaning Valve has to shoulder higher component cost increases. Additional comments can be found in the full article.

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How The GCC Became an Esports Powerhouse – Free Niko Knowledge Brief

The Gulf Cooperation Council (GCC) is rapidly establishing itself as a formidable player in the global esports scene. Home to 25 million esports enthusiasts, the region demonstrates significant long-term vision to become an esports giant, highlighted by the launch of the inaugural Esports World Cup in 2024. Robust government support, coupled with a youthful, tech savvy with high disposable income has positioned the GCC as a lucrative destination for esports industry stakeholders.

In this Knowledge Brief, we deep dive into the reasons behind the GCC’s rise as an esports hub. For further insights, read the part two of the Knowledge Brief: Esports Gamer Demographics and Behavior in MENA here.

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Tencent introduces AI tools within its parental controls app

Tencent Games has introduced a new suite of AI-powered features to its Youth Guardian parental controls platform, further strengthening its approach to youth protection and parental oversight. The update adds three core tools: an AI Game Weekly Report, AI One-Click Control, and a Parental AI Assistant, aimed at simplifying supervision while improving decision quality for families managing minors’ gaming behavior. Tencent’s Parental AI Assistant aims to address persistent pain points reported by families, including confusion over anti-addiction rules, uncertainty around appropriate control intensity, and challenges in communicating limits to children.

Why this matters: Parents can now receive instant summaries of their child’s game time and spending, behavioral patterns, registered accounts, alongside information on anti-addiction rules. The move shows how Chinese game companies are deploying AI, not just for content and monetization efficiency, but also for regulatory compliance and social responsibility. Anti-addiction enforcement remains a core policy priority in China following regulations in September 2021 that limited the amount of money and time that minors could spend on video games each week.

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iPhone sales up in China as Apple reports record quarter

Apple reported a sharp rebound in China for the quarter ending December 27, 2025. Revenue in Greater China, comprising mainland China, Hong Kong, and Chinese Taipei, rose 38% YoY, more than double Apple’s global quarterly revenue growth of 16%. The performance marked Apple’s strongest quarter in the region since late 2021 and came amid broader concerns around soft consumer sentiment and supply-chain pressure from a global memory-chip shortage. Apple CEO Tim Cook described the quarter as “the best iPhone quarter in history in Greater China,” attributing the result to strong demand for the iPhone 17 lineup.

Why this matters: The recovery is notable given Apple’s recent challenges in China. Over several prior quarters, the company faced sustained revenue declines driven by intensified competition from domestic smartphone brands, particularly Huawei. Apple has also lagged domestic competitors in its feature set, with Apple Intelligence yet to receive regulatory approval in the country. However, the results highlight the continued importance of the iOS ecosystem in China, even as Android maintains its dominant position and Huawei’s HarmonyOS emerges as a notable third player in the market.

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Esports World Cup Foundation unveils new ‘Global Road to EWC’ qualification program

The Esports World Cup Foundation has announced a new ‘Global Road to EWC’ program, which creates clearer qualification pathways for multiple esports titles that would all lead to this year’s Esports World Cup. The new program aims to integrate and work with pre-existing leagues, esports events, and tournaments across all regions, and for all games participating in the Esports World Cup. Open online qualifiers will also be run in parallel to this, offering more accessible pathways for emerging players.

Why this matters: Examples include the Apex Legends Global Series, EA Sports FC Pro, PUBG Global Series, Mobile Legends Professional Leagues, the Capcom Cup, the Chess.com Global Championship, Combo Breaker, CROSSFIRE Pro League and many more. With the EWC’s large prize pool, more convenient paths to qualify, and integration of the qualifiers into other already established esports circuits, the EWCF is looking to attract the attention of all esports fans and drive them to watch the Esports World Cup as the premier event that succeeds the normal qualifying events that they already watch.

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Roblox banned in Egypt

The Supreme Council for Media Regulation in Egypt, headed by its deputy chairman Essam El-Amir, announced its decision to block Roblox in Egypt. Coordination has begun with the National Telecom Regulatory Authority (NTRA) to implement the decision technically through internet service providers. The announcement was made during a plenary session of the Egyptian Senate while discussing requests related to the risks of the internet and social media platforms for children.

Why this matters: The decision followed a proposal submitted by Dr. Walaa Harmas Radwan, a member of the Senate, to regulate the status of the Roblox platform and organize the operation of video games in general. The discussions also addressed the economic aspects related to in-game purchasing systems, in addition to noting a number of lawsuits and international warnings concerning the platform. The ban does not come as a surprise to Niko Partners, given the title has already been banned of restricted across multiple MENA countries.

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Japan expands funding and talent support to boost global reach of its content industries, including games

The Japanese government is increasing support for its content industries, including games, anime, and manga, as the government positions the sector as a pillar of economic growth. Overseas sales of Japanese content reached JPY 5.8 trillion ($37.6 billion) in 2023, surpassing semiconductor exports, and the government aims to raise this figure to JPY 20 trillion ($130.6 billion) by 2033. The ruling Liberal Democratic Party adopted an emergency resolution in November calling for the content industry budget to be raised from the current JPY 25.3 billion ($164 million) to more than JPY 100 billion ($653 million), with JPY 35 billion allocated ($228 million) in the fiscal 2025 supplementary budget. The government’s new measures focus on strengthening global distribution networks, combating piracy, and expanding AI-driven translation tools alongside the training of specialized translators, responding to deepening labor shortages and rising production costs. Industry leaders, including Capcom president Haruhiro Tsujimoto, emphasized that localization demands substantial resources and that government support is essential.

Why this matters: Japan’s expansion of funding and infrastructure for its content industries signals a shift toward global competitiveness, with games industry poised to benefit from new localization, talent development, and distribution support. These structural investments could reshape competition with South Korea, China, and the United States while easing chronic labor bottlenecks for Japanese publishers.

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Nintendo’s stock down 30% over the past 6 months despite Switch 2’s 17 million units in sales

Nintendo’s latest earnings report revealed that Nintendo Switch 2 sales surpassed 17 million units worldwide, setting a new record for the fastest‑selling game console. Despite this, Nintendo’s stock has fallen more than 12% since the announcement and is down roughly 30% over the past six months. Rising memory prices and Google’s announcement of “Project Genie,” have contributed to investor concerns which speculate that AI‑driven, user‑generated game creation could eventually challenge the traditional value proposition of companies like Nintendo. The February 5 Nintendo Direct, focused solely on third‑party titles, delivered few major surprises, reinforcing the sense of uncertainty surrounding the Switch 2’s current market environment.

Why this matters: Even with strong demand, higher production costs can compress profits, an issue the market takes seriously. Furthermore, underwhelming showcases can amplify investor concerns that Nintendo lacks a strong software pipeline to support Switch 2’s momentum.

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Savvy Games Group signs multiple MOUs with Saudi’s Ministry of Education to include game development into official school curriculums

The Ministry of Education in Saudi Arabia has announced a strategic partnership with Savvy Games Group, signing 3 MOUs, with the goal of including game development into the official curriculum of schools across the country. With the new partnership, Savvy will work closely with the ministry to train teachers, upgrade school equipment/labs to teach, create scholarship programs, create national gamedev and esports competitions and much more.

Why this matters: Savvy Games Group have been actively collaborating with multiple local universities as of late to include game design and esports courses into their syllabus, and with this latest series of MOUs, they’ve now successfully guaranteed that game development and esports will be topics that students can learn at every academic level, not just as part of a higher education.

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PlayX4, the largest game show in Seoul Metropolitan Area, to be held in May

South Korea’s Gyeonggi Province has begun recruiting participating companies from February 10 for the upcoming 2026 PlayX4, the largest convergent game show in the Seoul metropolitan area. The event will take place from May 21 to 24 at KINTEX in Goyang under the themes of Exciting, Experience, Excellent, and Expert. PlayX4 has served as a platform connecting domestic and global game companies, expanding market opportunities for small and indie developers, and generating ongoing global collaboration. Last year’s event drew approximately 115,000 visitors and 721 companies, achieving 1,476 business consultations and export negotiation results worth $203 million.

Why this matters: The event serves as a business platform that helps small, indie, and global game companies connect and expand into new markets. The event has a proven track record of generating high-volume business meetings and export opportunities. Its continued growth signals strengthening momentum in Korea’s gaming ecosystem and its global competitiveness.

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The first Sega Atlus Festival in Indonesia held in Jakarta

Sega and Atlus held their first-ever Sega Atlus Festival in Indonesia at Mall of Indonesia in Jakarta on 7 February 2026, drawing large crowds from early morning. Game demo booths for titles like Sonic Racing: CrossWorlds, Yakuza Kiwami 3 & Dark Ties, Persona series, and Football Manager 26 saw long queues throughout the day. The merchandise area experienced overwhelming demand, resulting in long wait times and visitor frustration due to unclear real-time stock updates. Despite these issues, the event featured lively attractions including cosplayers, community activities, stage sessions, and esports tournaments.

Why this matters: The event’s attendance far exceeded prior expectations from both organizers and the fans, signaling strong local community support and the potential for larger-scale events in Indonesia in the future. Indonesia continues to be the largest games market in Southeast Asia by population, with PC and console game market growth recorded every year.

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Events

GDC Festival of Gaming

March 9-13, 2026
San Francisco, USA

Attendees: Lisa Hanson, Alexander Champlin

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

The Gulf Cooperation Council (GCC) is fast emerging as a major force in the global esports landscape, driven by a combination of strategic advantages. With nearly 25 million esports fans across the region, this signifies long-term growth potential, culminating with the first Esports World Cup in 2024.

Strong government initiatives, combined with a young, gaming-enthusiast population has elevated the GCC into an increasingly attractive market for publishers, teams, tournament organizers, and other esports industry stakeholders looking to expand their global footprint.

In this Knowledge Brief, we explore how the GCC has evolved into an esports powerhouse and examine how industry leaders connect to esports audiences across the region. Fill out this form to download the Knowledge Brief.

Check out the second part of the Knowledge Brief: Esports Gamer Demographics and Behavior in MENA here.

Nintendo’s latest earnings report states that the Nintendo Switch 2 has shipped 17.37 million units globally as of December 31, 2025, with 7 million units shipped during the holiday quarter. The positive results have allayed some investor fears that sales of the Switch 2 were weak during the last quarter of the year. The Switch 2 is Nintendo’s fastest selling console ever and Nintendo has maintained its forecast for the full fiscal year ending March 31, 2026. Nintendo President Shuntaro Furukawa said that memory price rises are not significantly impacting results during the financial year, but could impact profitability if the component costs remain high over the longer term.

Why this matters: Niko Partners was bullish on Switch 2’s first year, but we caution that long term success will depend on both first party software releases and external factors such as tariffs and memory prices. We currently expect Nintendo to increase the price of the Switch 2 in 2026 as a result of the latter. While there were concerns around holiday performance for the Switch 2, we note that sales in Asia were strong, with Japan seeing a 37% shipment increase in Q4 2025 compared to the Switch 1’s first holiday quarter. Concerns around weakness were primarily due to lower than expected shipments in North America where macroeconomic conditions, high demand at launch, and the lack of a major holiday release dampened sales somewhat. We currently forecast that Nintendo Switch 2 will surpass 50 million units sold by the end of 2027, in line with the original Switch.

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Niko Partners at MLBB M7 World Championship: From Jakarta with Global Ambition - New Blog Post

The seventh edition of the Mobile Legends: Bang Bang (MLBB) M-Series reached record-breaking viewership, making it the most-watched mobile esports event to date. The tournament also highlighted MLBB’s ongoing efforts to expand beyond its core Southeast Asian markets and grow its global presence. Niko Partners was on site to catch the action in full. Read our take of the event in our latest blog post

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Chinese game companies back Generative AI firms to build out development tools

Daniel Ahmad, the Director of Research and Insights at Niko Partners, spoke to the South China Morning Post on how Chinese game companies are adopting generative AI tools across multiple stages of production including development, operations, marketing, publishing, and player engagement, as well as directly investing in AI companies. Recently public listing for AI companies Zhipu AI and MiniMax were backed by firms such as Tencent, Alibaba and miHoYo. 37 Interactive Entertainment has taken stakes in Zhipu AI, Moonshot AI, and Baichuan. AI is increasingly viewed as a catalyst to move the games industry beyond its recent period of stagnant growth, enabling larger and more complex games without proportional increases in staffing.

Why this matters: Chinese developers are seeking to revive growth and manage rising development costs for AAA and live service titles, where content scale and update cadence have expanded faster than headcount efficiency. “It is primarily being seen as a way to reduce development costs, speed up game development, expedite user acquisition and create new experiences,” Ahmad said, adding that AI adoption appeared higher in China and Asia’s game sector than in the US, based on player surveys and discussions with industry executives.

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Vietnam GameVerse 2026 expands esports, industry programs as Vietnam links games to cultural export goals

On January 29, the Authority of Broadcasting and Electronic Information under the Ministry of Culture, Sports, and Tourism, together with VnExpress and Vietnam Game Development Alliance, announced Vietnam GameVerse 2026 in Hanoi. The program runs February to May, ending in Ho Chi Minh City, and adds ticketed attendance, an expanded expo, forums, and esports tournaments alongside Vietnam Game Awards and GameHub.

Why this matters: The expansion of GameVerse comes as the government of Vietnam frames the event as supporting cultural export and the cultural industries strategy. Recently, the government set a target of $1 billion in annual games industry revenue by 2030. In November 2025, the government issued a national strategy for developing cultural industries, identifying gaming as one of six key sectors.The event is also set to include the official Southeast Asian esports cup and domestic finals.

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Tencent launches Operations Pro League for Delta Force in China

Delta Force has announced the Operations Pro League, its first official professional esports league in mainland China, spanning Spring and Summer 2026 and culminating in a World Cup event. The league will feature 24 teams, including 18 fixed slot teams such as All Gamers, eStar, LGD Gaming, Bilibili Gaming, Wolves Esports, Nova Esports, Qing Jiu Club, and Weibo Gaming, with six additional teams to be selected through open qualifiers. The announcement builds on a strong 2025 performance for Delta Force in China. The title hosted multiple domestic tournaments throughout the year, culminating in two Delta Force Invitationals.

Why this matters: Delta Force recently surpassed 41 million DAUs in China, a scale that places it among the country’s largest live-service shooters. The game has also consistently ranked first on Douyin’s trending list, with daily views exceeding one billion. The launch of a structured 2026 esports league backed by major Chinese organizations shows that Delta Force is solidifying its foothold in China’s FPS and extraction shooter segment. Its rapid user growth and strong Douyin traction suggest the title may remain a major competitive force even as global publishers plan entries into the same genre.

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37 Interactive outlines developments using Generative AI

37 Interactive Entertainment released a new Investor Relations Activity Record detailing its strategic response to structural shifts in the games industry, with a strong emphasis on GenAI integration, product pipeline depth, and talent restructuring. The company disclosed that it currently has more than 10 titles in development, concentrated primarily in SLG and casual genres. It also continues to focus on puzzle strategy games, particularly across match-3 and hybrid “match-2” categories. GenAI was positioned as a core pillar across publishing, development, and long-term strategy.

Why this matters: It’s no secret that Chinese game companies are embracing generative AI across their operations, with more than 60% of developers in the country doing so according to a recent survey. For 37 Interactive, AI is now used across 90% of its workflows. In user acquisition, 37 Interactive was among the earliest domestic publishers to deploy AI-driven ad buying, with automated placements now accounting for over 70% of total spend. AI penetration in art production has reached 65%, significantly reducing 2D and 3D asset costs.

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Return to Silent Hill has larger debut in China than US

Return to Silent Hill, a new movie based on the popular horror video game IP owned by Konami, premiered at cinemas this week. In the US, the film opened to just $3.2 million, ranking seventh at the box office amid severe winter storms that disrupted theater attendance and intense competition from tentpole releases such as Avatar: Fire and Ash and Zootopia 2. In contrast, China emerged as the film’s clear standout market. Return to Silent Hill debuted at number one in China with an estimated $9.3-9.5 million, despite relatively limited screening allocations.

Why this matters: China accounted for roughly half of the film’s global opening weekend, contributing to an estimated $16 million across 37 international markets and a total global opening of approximately $19.3 million. The result is notable given that the underlying Silent Hill IP does not have a strong historical footprint in China compared with other global gaming franchises. China’s performance appears to be driven less by IP recognition and more by genre appeal.

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Arknights Endfield surpasses 30 million downloads but sees payment issue on day 1

Arknights: Endfield, the action RPG developed by the Chinese developer Hypergryph, has surpassed 30 million downloads globally according to the company. It is a spinoff of Hypergryph’s 2019 tower defense game Arknights. The game was released on January 22, 2026, for PlayStation 5, PC, and mobile devices. While reviews have generally been positive, with an average 8/10 review score, the game suffered from a payment bug on its first day. According to the developer, a payment system malfunction on its webshop and official game launcher led to PayPal making unauthorized transactions for players that had not purchased any in-game items.

Why this matters: In China, the game debuted at #1 on the iOS game download chart and reached #4 on the iOS game revenue chart in its first week. According to Niko Partners’ China Games & Livestreaming Tracker, it was the #4 most viewed title in its first week, reaching 29 million viewers. Hypergryph said the bug impacted 1,800 players who were charged a cumulative $80,000 via PayPal. The company disabled PayPal as a payment option, conducted a full investigation, and issued full refunds. While incidents like this highlight risks around D2C payment options for players, we do not expect this to have a negative impact on the sector.

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Union Budget 2026 backs AVGC creator labs across 15,000 schools, 500 colleges

India’s new Union Budget for 2026 proposes support for the Indian Institute of Creative Technologies to set up Animation, Visual Effects, Gaming, and Comics (AVGC) content creator labs in 15,000 secondary schools and 500 colleges. The plan emphasizes hands-on training for animation and game creation, alongside a $27.3 million (INR 2.5 billion) AVGC talent allocation and a government estimate of two million professionals needed by 2030.

Why this matters: The 2026 budget represents a step improvement over last year when it comes to funding for gaming related talent and represents an increased focus on video games after the government banned Real Money Gaming last year. India’s Game Developer Association of India (GDAI) estimates that with coordinated policy support, India’s games sector could train over 200,000 developers, support more than 1,500 studios and generate $10 billion in annual exports by 2035. 

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Pokémon sees backlash in China over alleged Yasukuni shrine event

Pokémon has come under scrutiny on Chinese social media following the announcement that a Pokémon card game event was planned at the Yasukuni Shrine area in Japan, a site widely viewed in China as a symbol of Japanese wartime militarism. The listing prompted accusations that the Japanese company was benefiting commercially from China while undermining Chinese historical sensitivities. The Yasukuni Shrine is highly contentious in China and other parts of East Asia because it commemorates Japan’s war dead including war criminals. The Pokémon Company has since issued an apology in both Chinese and Japanese.

Why this matters: The Pokémon IP is extremely popular in China across its video games, card game, media and merchandise, but the event has been viewed negatively and also comes at a time when relations between China and Japan have started to worsen. This is not the first time Pokémon has been drawn into Yasukuni-related controversy in East Asia. In 2019, South Korean social media users criticized Creatures Inc., a core Pokémon developer, after employees were alleged to have shared photos of themselves worshiping at the shrine. This once again underscores the need for strict oversight of brand usage!

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Events

WN Abu Dhabi

February 11-12, 2026
Abu Dhabi, UAE

Speaker: Bahaa Hamza

GDC Festival of Gaming

March 9-13, 2026
San Francisco, USA

Attendees: Lisa Hanson, Alexander Champlin

Contact us to set up a meeting →