Mintrocket’s Dave the Diver has surpassed 10 million copies sold globally across all platforms, up from 7 million prior to its official smartphone launch in China on February 6, 2026. Its “In the Jungle” expansion, released in June, has separately surpassed 1 million sales. China has become an important part of the Korean developed title’s continued expansion. Mintrocket, a subsidiary of Nexon, partnered with XD Network, operator of TapTap, to formalize its China publishing strategy and bring the game to smartphones. Notably, the mobile version retained a premium upfront purchase model rather than adopting the free to play monetization that dominates China’s mobile market.

Why this matters: The title originally emerged as a breakout PC hit in 2023 through its combination of deep sea exploration, restaurant management, and narrative elements before expanding across additional platforms. Mintrocket is now seeking to develop Dave the Diver into a broader franchise and has already announced Bancho The Chef, a culinary simulation and adventure spinoff centered on one of the original game’s major characters, while the performance of In the Jungle demonstrates an existing audience willing to purchase additional premium content.

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Tokyo Game Show 2026 included Asia regional presence with one glaring omission

Tokyo Game Show 2026 celebrated its 30th anniversary from September 17 to September 20, with this year’s event presenting a vision of the industry increasingly shaped by established IP, remakes, artificial intelligence, transmedia expansion, and the growing presence of game developers from across Asia. Niko’s Director of East Asia & Southeast Asia Research Darang Candra attended the event and observed that the Southeast Asian markets had a particularly visible presence through dedicated national and regional pavilions. Malaysia marked its tenth consecutive year with an official presence at Tokyo Game Show, while organizations representing South Korea, Thailand, Philippines, and Indonesia, among others, also brought developers to the event. This year’s event saw 257,642 visitors, a slight decline from last year’s 263,101. It should be noted that the event was supposed to last until September 21, but the last day was canceled due to a typhoon warning.

Why this matters: The stronger visibility of other Asian markets contrasted with a significant reduction in participation from mainland China. Chinese exhibitor attendance reportedly declined approximately 40% YoY, amid heightened political tensions between China and Japan, with notable Chinese companies that still put major exhibits include Tencent, Century Games, and XD. This was particularly notable given the increasing international presence of Chinese publishers and developers at other major global events, including gamescom. The contrast highlights how Asia’s games industry is becoming both more internationally connected and more geographically diversified.

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China’s public video game companies see 9% revenue growth in H1 2026

An analysis of 64 publicly listed game companies in China shows total game related revenue reached approximately RMB 257.4 billion ($36.2 billion) in H1 2026, up 9% YoY, while combined company net profit increased approximately 10% to RMB 149.9 billion ($21.1 billion). Both growth rates slowed from 2025, and if you exclude Tencent, aggregate game revenue was essentially flat and profit increased just 4.4%. Market concentration continued to increase with Tencent, NetEase and Century Huatong accounting for 79% of total game revenue across the 64 companies, up from 78% in the same period last year.

Why this matters: Growth was increasingly uneven across the wider industry. 39 of the 64 companies, or 61%, reported declining game revenue, compared with 53% a year earlier, indicating that aggregate growth increasingly reflects the performance of a relatively small number of market leaders and breakout titles. Of 29 companies reporting headcount changes, 11 added a combined 931 employees while 17 cut 794 positions. H1 results point to a growing divide within China’s games industry where headline revenue continues to expand, but primarily among the market leaders with evergreen games.

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Indie game sees 90% of sales from China market thanks to streamer campaign

Firebrick Games’ multiplayer card battler One Last Hand launched on Steam on August 14, 2026, after accumulating approximately 10,000 wishlists and 50,000 unique demo players. The dev team reported 16,500 gross unit sales during its first two weeks with approximately 90% of sales from China. The game’s China momentum appears to have started with a relatively inexpensive paid streamer campaign. Larger Chinese streamers subsequently began covering the game organically and broader streamer exposure, word of mouth, and Steam’s discovery systems reportedly reinforced one another and converted into launch sales. The initial campaign seems to have acted as a catalyst for substantially larger organic exposure.

Why this matters: One Last Hand is a two to six player online card battler combining secret bidding and poker inspired hands with Relics and power ups. Most importantly, it launched at RMB 29 ($4.50) with Simplified Chinese localization. The case illustrates how China can become the primary market for small Western Steam games with relatively little initial marketing expenditure when creator exposure triggers organic discovery. It also reinforces the importance of Chinese localization and regional pricing at launch, allowing developers to capitalize immediately when unexpected community or streamer driven momentum emerges.

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AI use among Japanese game developers rises to 85% in 2026 per CESA, up from 51% in 2025

A new survey by the Computer Entertainment Supplier’s Association (CESA), the host of Tokyo Game Show, revealed that 85.8% of Japanese game developers are using generative AI in games development, a marked rise from the 51% recorded by the survey in 2025. While CESA did not break down specific use cases, it noted that optimizations around operational efficiency and productivity, the compression of development cycles, and lowering of costs as the main drivers for adoption. These use cases differ from the 2025 report, where the generation of visual assets was the main purpose of the technology, suggesting a shift in how AI is being used.

Why this matters: The survey also noted that human supervision of AI output was the most common measure surrounding its use, citing the importance of not simply using the AI output as-is. This may be due to backlash around the usage of AI in games development, with a recent notable example surrounding the usage of AI assets in Japanese game developer Level-5’s newest titles featured in its latest showcase, Level5 Vision 2026 II: Dreams, which CEO Akihiro Hino addressed in a statement on X. Whether this backlash will materially impact sales of its upcoming titles remains to be seen, however.

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Saudi Arabia to launch Kingdom of Gaming event in December 2026

Saudi Arabia will host the inaugural Kingdom of Gaming event in Riyadh from December 1 to December 3, 2026, creating another major industry gathering as the Kingdom continues to position itself as a global hub for games and esports. The event will take place at the Riyadh Exhibition & Convention Center in Malham and is targeting more than 20,000 attendees, 500 studios and developers, 300 exhibitors and sponsors, and 200 investors. More than 200 speakers are expected across four stages, with programming covering game development, publishing, investment, emerging technologies, talent, and esports.

Why this matters: Kingdom of Gaming is primarily positioned as an industry networking and investment platform, bringing together game companies, investors, government institutions, technology providers, and talent to pursue partnerships and commercial opportunities. Savvy Games Group, Ubisoft, and Roblox have been announced as the first Global Gaming Leaders associated with the event, with additional companies expected to be confirmed ahead of December. The country has already used large scale initiatives such as the Esports World Cup and industry conferences to attract international companies and executives, while government backed investment, incubation, and training programs are simultaneously being used to develop the domestic ecosystem.

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TapTap Play Festival connects Chinese players with developers

TapTap held its TapTap Play Festival in Shanghai from September 12 to September 13, 2026, positioning the event between a traditional consumer game convention and an industry developer gathering. The festival included game demos, cosplay, merchandise, and other consumer focused activities, while bringing domestic and international developers directly into discussions with Chinese players. Unlike traditional industry events such as gamescom and ChinaJoy, the festival placed less emphasis on business development and more on direct interaction between game creators and players. Developers participated in Q&As and activities centered on development decisions and community feedback.

Why this matters: The event is increasingly becoming a way for international game developers to reach players in China. The creators of Terraria, attending an event in China for the first time, were shown a community produced video documenting Chinese players’ experiences with the game. inZOI producer Hyungjun Kim similarly participated in an interactive discussion with players covering development tradeoffs such as delaying updates for additional polish. TapTap provides access to a concentrated audience of enthusiast players willing to discover and discuss smaller games, while its 0% revenue share policy lowers the commercial barrier to distribution.

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Counter-Strike Major will return to Shanghai in 2027

Perfect World Esports has confirmed that Shanghai will host Valve’s second Counter-Strike 2 Major of 2027, bringing one of the game’s most important international esports tournaments back to China three years after the city hosted the 2024 Shanghai Major. The tournament is confirmed for a November to December window, although exact dates, format, and prize pool have yet to be officially announced. The decision further strengthens China’s position within the global Counter-Strike esports ecosystem.

Why this matters: Shanghai’s return is particularly notable given the continued importance of Counter-Strike in China’s PC gaming market despite challenges around casual player engagement, cheating, and competition from newer shooters such as Delta Force and Valorant. Major international events provide Perfect World and Valve with an opportunity to reactivate local players, strengthen Counter-Strike‘s visibility, and reinforce its esports credentials.

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Kingnet to invest $300 million in consortium acquiring WeMade

Chinese game developer Kingnet Network plans to invest approximately $298 million in a consortium set to become Wemade’s largest shareholder, transforming a company that was previously one of Wemade’s major legal adversaries into a strategic partner focused on expanding the Korean publisher’s business in China. Kingnet will acquire 49% of investment vehicle Neosphere and contribute approximately $298 million through a capital increase. Nexpulse will invest at least $310.2 million and retain the remaining 51%. Neosphere is preparing to acquire a 40.25% stake in Wemade, which would make the consortium its largest shareholder.

Why this matters: The deal is particularly significant because Kingnet and Wemade spent years in legal disputes surrounding royalties and licensing for The Legend of Mir, Wemade’s flagship MMORPG IP and one of the most commercially important Korean game franchises in China. The companies reached an agreement earlier in 2026 to resolve disputes across Korea, China, and Singapore, creating the foundation for a broader commercial relationship. Following completion, the consortium intends to expand Wemade’s publishing and core IP licensing activities in China and other international markets. Nexpulse, is a Chinese investment platform with reported connections to Alibaba and several Chinese game companies.

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Bombanana! emerges as hit PC game from Turkish studio

Türkiye’s emerging PC game development ecosystem has produced a breakout hit, with Bombanana! surpassing 1 million Steam sales within 10 days of launch. The three player cooperative party game was developed by Türkiye-based Lefto Studio and published by Tark Games. Bombanana! is built around a communication-driven concept in which three players assume the roles of monkeys who are respectively blind, deaf, and mute. Each player possesses only part of the information required to defuse a bomb, creating a social experience centered on communication, misunderstanding, and emergent interactions between friends.

Why this matters: The title entered launch with significant momentum, having accumulated more than 1 million Steam wishlists and over 6 million demo players globally. Bombanana! is the first title from Tark Games, an Istanbul based independent PC and console publisher established in 2025 with backing led by Türkiye-based games investment firm Ludus Ventures. The country’s mobile sector has already produced internationally successful developers, investors, and exits, creating a foundation of capital and publishing expertise that can increasingly support PC and console studios.

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NODWIN Gaming launches sports division to expand beyond esports

NODWIN Gaming has launched NODWIN Sports, a new division focused on developing mainstream sports properties, mass-participation events, sports partnerships, and operational services across India and the wider Global South. Led by former Adidas India sports marketing executive Gurbaksh Singh Virdi, the division will apply NODWIN’s existing capabilities in content, production, partnerships, and community engagement to sports beyond esports. NODWIN’s move reflects a broader expansion from esports into youth entertainment and live experiences, building on properties such as BGMI Masters Series, Comic Con India, and NH7 Weekender.

Why this matters: This matters because NODWIN is increasingly treating audience communities, content, events, and intellectual property as transferable capabilities rather than limiting its growth to esports. For esports stakeholders, the expansion could create additional commercial and partnership opportunities, but it also introduces execution demands and competition for management attention across a broader portfolio.

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Events

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Speaker: Narinder Kapur

Contact us to set up a meeting →

Highlights from Niko Partners China Games & Livstreaming Tracker August 2026: RPG maintained their strong position among China’s most-watched livestreaming genres last month, with new games such as Lord of Mysteries and Mistfall Hunter gaining attention.

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Exclusive: China’s game market expected to grow 4% in 2026 and hit $59.8B by 2030 | Niko Partners

China’s video game market reached a new milestone in 2025, generating $51.8 billion in revenue, up 5.4% year-over-year and surpassing the $50 billion mark for the first time. Niko Partners forecasts the market will slow somewhat this year, growing another 4.0% in 2026 to $53.9 billion, before reaching $59.8 billion by 2030, representing a five-year CAGR of 2.9%. Xiaofeng Zeng, Vice President of Niko Partners, and Daniel Ahmad, Director of Research & Insights at Niko Partners spoke to Gamesbeat on the latest China Player Behavior & Market Insights report that was recently released. The article has key takeaways for our readers, but please note that the report itself is 96 slides (including the appendix of player survey analysis) and is #2 in a 3-part series of China Country Reports for 2026. If you are serious about success in China, please contact us.

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From Genshin Impact to Arknights: What drives China’s mobile games industry?

Niko Partners Vice President, Xiaofeng Zeng, spoke to The Straits Times about China’s video game industry and its expansion overseas. Of late, Chinese video games appear to be hitting their stride, with the 2024 breakout Black Myth: Wukong – based on Chinese mythology – catapulting this category of digital entertainment into global consciousness. “The Chinese domestic market is highly competitive, making overseas expansion a no-brainer,” he said. “Southeast Asia is an important market for Chinese mobile game developers due to its cultural proximity and low market-entry barriers. However, the most profitable opportunities remain in high-ARPU (average revenue per user) markets such as the US and Japan,” he continued. The article is available below.

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Saudi Arabia’s PIF reportedly considers merging EA and Savvy Games

Saudi Arabia’s Public Investment Fund (PIF) is considering merging Electronic Arts (EA) and Savvy Games. The merger would combine major EA franchises such as EA Sports FC, Battlefield, and The Sims with Savvy-owned mobile titles including Monopoly Go! and Pokemon GO. PIF acquired EA through a consortium for approximately $55 billion last month and took the company private. No final decision has been made, and any merger is unlikely before Savvy completes its planned $6 billion acquisition of Chinese mobile gaming company Moonton.

Why this matters: Any potential deal could face antitrust scrutiny as regulators continue to closely examine large gaming-sector transactions. The report also noted that Savvy CEO Brian Ward stepped down last week after overseeing the company’s investment and acquisition strategy. The reported discussions highlight continued consolidation in the global games industry as companies seek scale and recurring revenue amid slower market growth. The outcome could further expand Saudi Arabia’s influence across console, PC, mobile, and esports segments, while increasing regulatory scrutiny of large gaming-sector acquisitions.

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Qatar outlines plans to build a globally connected gaming ecosystem by 2030

Qatar aims to build a globally connected ecosystem for game development, publishing, and digital content while positioning itself as a gateway to the wider Middle East market. According to Mohammed Al Mulla of Invest Qatar, the country now offers a business-friendly environment, strong digital infrastructure, international partnerships, and support initiatives such as Startup Qatar, which has attracted more than 6,000 applications from around the world. Invest Qatar evaluates international gaming companies based on their potential to contribute to economic diversification, innovation, knowledge transfer, talent development, and local ecosystem growth.

Why this matters: Qatar’s goal is to establish a sustainable gaming ecosystem that attracts international developers and publishers, enables local studios and talent to compete globally, and remains adaptable to emerging technologies and industry trends. Qatar’s strategy reflects growing competition among MENA markets to attract gaming investment, talent, and international publishers. Industry stakeholders should monitor how Qatar’s incentive programs and ecosystem-building initiatives differentiate it from Saudi Arabia and the UAE as regional gaming hubs. Note: We published a Research Brief about Qatar and the GCC that is available for free download on nikopartners.com.

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Games industry employment shifts towards APAC and China

Games industry employment is undergoing a significant geographic redistribution despite continued layoffs, according to data presented by Amir Satvat, general partner at 1Up Ventures and former Tencent executive, during the opening keynote at Gamescom Dev 2026. Satvat projects 14,666 games industry layoffs in 2026, approaching the 2024 peak of 15,631. Approximately 10,140 layoffs had already been announced by August 11, exceeding the 9,200 recorded across all of 2025. However, total global games industry employment has remained relatively stable, suggesting that job losses are increasingly being offset by hiring elsewhere.

Why this matters: The clearest shift is away from North America. Satvat estimates the region accounted for more than two thirds of tracked layoffs, losing approximately 25,000 roles, equivalent to 15% of its games workforce, over the broader period analyzed. California has been particularly affected, accounting for more than half of global layoffs during one 12 to 18 month period. Satvat attributed the geographic shift to factors including labor costs, government incentives, and talent availability. By comparison, available games industry roles increased 10% across APAC, including 12% growth in China, while Europe remained broadly flat.

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Delta Force sets daily spending record with new season launch

Tencent’s Delta Force has returned to the top of China’s iOS game revenue chart following the launch of its latest season, recording its highest single day of mobile player spending to date on September 5, 2026. The new record comes more than a year after its mobile release and surpassed its previous peak from November 15, 2025. Chinese players accounted for more than 99% of mobile spending during the September 5 peak, highlighting the domestic market’s continued importance to the title. Delta Force has experienced several sharp revenue increases around major updates during its lifecycle, although spending has historically returned toward baseline levels within several days. It’s worth noting that the game is also available on Android, PC and console, and the boost on iOS may not be entirely representative of total revenue.

Why this matters: Delta Force‘s longevity strategy increasingly combines regular content additions with continuous optimization of existing systems. New maps, weapons, operators, and modes provide reasons for existing and returning players to explore the game, while Tencent’s Team Jade continues to revise map layouts, address dominant strategies, and introduce gameplay options for different player segments. This helps prevent continuous content additions from simply increasing complexity without improving the underlying experience. Social features, matchmaking for finding teammates, esports, community activities, and player created subcultures are intended to create relationships and behaviors that persist beyond individual seasonal updates.

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Sega and Netflix announce multi-title partnership across video game IP

Sega and Netflix have established a multi-title adaptation partnership covering Crazy Taxi, Sonic, and Stranger Than Heaven, expanding Sega’s strategy of developing its game IP across film and television. The first project will be a Crazy Taxi film, written by Dan Gregor and Doug Mand, the writers behind The Naked Gun reboot. Netflix will also develop a new Sonic animated series targeting an upper preschool audience. The project follows Sonic Prime, which debuted on Netflix in 2022. Sega’s upcoming Stranger Than Heaven will also receive a live action crime film adaptation, with Nakahara producing.

Why this matters: The partnership strengthens Netflix’s growing position as a destination for game related entertainment. Its existing and upcoming adaptations span properties including Cyberpunk, Devil May Cry, Assassin’s Creed, Gears of War, Minecraft, Clash of Clans, and Overcooked. Netflix is also increasingly being used for game marketing itself, with Rockstar recently debuting an exclusive extended gameplay presentation for Grand Theft Auto VI on the service. The agreement reflects how major game companies are increasingly treating IP expansion as a portfolio strategy rather than adapting only their largest franchises.

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Level 5 apologizes for using Generative AI following fan backlash

Capcom plans to increase its focus on reactivating dormant IP following the strong launch of Onimusha: Way of the Sword, the franchise’s first mainline installment in more than two decades. Onimusha: Way of the Sword sold more than 1 million units worldwide on its September 4, 2026 launch day, taking lifetime sales for the Onimusha franchise above 10 million units since its debut in 2001. Capcom said prerelease demos and hands on showcases contributed to awareness among both existing fans and newer players. The performance provides further validation for Capcom’s strategy of extracting additional value from its extensive IP catalog.

Why this matters: Alongside annual releases for major franchises, the company said it intends to revive properties that have not received new titles recently, potentially allowing it to diversify its portfolio without relying exclusively on its largest franchises such as Resident Evil, Monster Hunter, and Street Fighter. However, Capcom is not limiting investment to established brands. Pragmata, a rare new IP from the company, launched in August and surpassed 1 million units within its first few days, demonstrating that Capcom continues to invest in original properties alongside franchise revivals.

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Egypt’s Esports Summit announces sixth edition with EGP 1.5 million prize pool

FWZ, organizer of the Esports Summit (ESS), announced the event’s sixth edition in partnership with the Egyptian Esports Federation, scheduled for September 24 to 25, 2026, at Hassan Mostafa Stadium in Cairo. Organizers are targeting approximately 15,000 attendees, up from more than 10,000 at the 2025 edition, and will offer prizes and giveaways worth EGP 1.5 million (about $30,000) through the event’s new Gen Gamers Arena experience.

Why this matters: The 2026 edition will also introduce a program supporting content creators, providing selected creators with tools and resources to produce content and engage their communities during the event. Egypt’s esports events market continues to mature through larger audience targets, higher prize funding, and broader creator ecosystem support.

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Huawei launches HarmonyOS 7 with over 35,000 compatible games

Huawei said more than 5 million devices upgraded to HarmonyOS 7 within 24 hours of its release, following the start of its public beta across supported smartphones, tablets, computers, smartwatches, and earphones in China. The combined installed base of devices running HarmonyOS 6 and 7 has now exceeded 85 million, with Huawei expecting it to surpass 100 million in Q4 2026. The growing installed base is increasingly important for game developers because recent HarmonyOS versions operate independently from Android and require native app and game support. Releasing a mobile game in China means not just developing an Android and iOS version, but a HarmonyOS version too.

Why this matters: The number of games available for HarmonyOS has increased from effectively zero to more than 35,000 within approximately two years, while more than 1,000 partner companies are participating in the ecosystem. More than 20 mainstream game engines now support HarmonyOS development. The company is simultaneously developing Huawei Game Center into a broader discovery and engagement platform, combining editorial recommendations, game guides, AI assistance, and community functionality. Reaching 100 million devices will solidify the commercial case for dedicated HarmonyOS development, particularly if Huawei can maintain the higher spending and payer conversion it has previously claimed vs Android.

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Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Attendee: Narinder Kapur

Contact us to set up a meeting →

RPG titles dominated China’s livestreaming landscape in August 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that RPG remained one of the most-watched genres in China’s livestreaming market in August 2026. In general, major updates and preview broadcasts supported audience interest. Meanwhile, new August entrants included Lord of Mysteries, which debuted at #16, and Mistfall Hunter, which debuted at #24.

Kuaishou’s Lord of Mysteries ranked as the #44 most-viewed game on our Niko Index chart, and at #16 when isolating the RPG genre, amassing a total of 5.6 million viewers across Huya, Douyu and Bilibili in August. The F2P RPG cross-platform mobile/PC game launched across key platforms like iOS, Android, HarmonyOS, alongside a PC version distributed via its official website on August 21.

• The open-world MMORPG, adapted from the popular Chinese web novel of the same name, reportedly had a total development and marketing investment of RMB 1.2 billion ($179 million), making it one of China’s highest profiles MMO launches this year.

• Player acquisition was strong, with 1 million registrations added within one hour and more than 5 million within 24 hours of launch.

• The title continued to perform well, entering its second week having grossed more than $20 million across all platforms in its first. But it’s still too early to deem the game a success.

• The title holds a 7.2 rating on TapTap. Players praise the atmospheric visuals, music, voice acting and recreation of the original novel, but criticize repetitive MMO systems, and progression heavily influenced by P2W mechanics.

Developed by Bellring Games, a subsidiary of Bytedance (TikTok), Mistfall Hunter ranked as the #87 most-viewed game on our Niko Index chart, and at #24 when isolating the RPG genre, amassing a total of 2.0 million viewers across Huya, Douyu and Bilibili in August. The premium RPG cross-platform PC/console game launched across key platforms like Steam International, Xbox Series X|S, and PlayStation 5 on July 30. Notably, the title sold 1 million units in its first week.

• In China, the standard edition was priced at RMB 88 ($13.10) and the deluxe edition at RMB 138 ($20.53), with a 14-day launch discount and the lowest available price offered through the official website.

• The game first started gaining popularity as a result of the Steam Next Fest Demo where it attracted 430,000 participants.

• Simplified Chinese accounts for approximately 14.70% of the reviews, only half of which are positive. While players praised its dark-fantasy atmosphere, engaging Soulslike combat and extraction concept, the game was heavily criticized for server lag, regional restrictions, class imbalance, limited solo progression, and aggressive monetization.

The above is an extract from our China Games & Livestreaming Tracker August 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!

Roblox corp has launched Roblox Arabia, a new set of Arabic language social media channels designed to provide localized content, news, and platform updates for users across the Arab world. The channels will also promote regional creators, experiences, and communities, giving Roblox a dedicated communications presence for Arabic speaking users. The launch is the latest step in Roblox‘s broader MENA expansion. In May 2026, the company signed an MoU with Saudi Arabia’s Savvy Games Group focused on developing the Kingdom’s game development ecosystem. Roblox subsequently announced plans to establish its MENA regional headquarters in Riyadh, with the office expected to support regional creators and strengthen relationships with local stakeholders.

Why this matters: For Roblox, localization is also becoming increasingly important from a regulatory perspective. Roblox has been expanding its Arabic language moderation and safety capabilities following scrutiny from MENA regulators over content accessible to younger users. The combination of localized moderation, regional operations, government and industry partnerships, and Arabic communications should help Roblox demonstrate greater responsiveness to local regulatory and cultural requirements. This is particularly important for a user generated content platform with a substantial younger audience, where inadequate moderation can increase regulatory risk.

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Japanese gaming IP has a strong foothold in Qatar

Japanese gaming culture is making a strong impression on players in Qatar, one of key market in the The Gulf Cooperation Council (GCC) region. Our latest research found that 95% of surveyed players in the country could name at least one Japanese video game franchise, with almost half recognizing five or more.This demonstates Japanese gaming IP already has remarkable visibility in the market, creating opportunities for publishers, brands, and investors to build deeper connections with local audiences. Discover what this means for the GCC gaming landscape in our latest research brief, commissioned by Media City Qatar in collaboration with Niko Partners.

Download the research brief here →

Leading Chinese game companies report positive earnings in H1 2026, with diverging areas of growth

Financial results from 24 major listed Chinese game companies highlight an increasingly divergent market in H1 2026, with 17 companies profitable and 7 reporting losses. While China’s largest publishers continue to benefit from diversified portfolios and established evergreen titles, results among smaller companies remain significantly more dependent on individual game performance. Tencent reported 9.7% YoY growth in online games growth, while NetEase reported 8.3% YoY growth. Century Huatong recorded particularly strong growth, up 28.5% YoY. At the same time, Perfect World reported its first H1 loss in nearly a decade as a result of weakening revenue from older titles during a transition period ahead of new releases.

Why this matters: While Tencent and NetEase continue to see balanced growth across both domestic and international markets, Century Huatong’s growth has been more heavily driven by overseas markets. Century Games, its international publishing subsidiary, has benefited from the sustained performance of Whiteout Survival and Kingshot which have emerged as top grossing strategy games overseas. H1 2026 demonstrates that China’s games market is growing, but with diverging outcomes for mid sized publishers who not only have to compete with Tencent and NetEase at home, but also leading global game companies overseas.

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Why the mini game market matters in China

Mini games are emerging as a major growth engine in China’s mobile gaming market, it is now a segment worth watching closely. About 80% of Chinese players engage with mini games, which now account for nearly 20% of mobile game spending. Learn more about our findings in our recently released China Player Behavior & Market Insights report here.

Download the key takeaways here →

China approves 215 video games in July 2026

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 209 domestic games and 6 import games on August 31, 2026. This is the seventh batch of games approved in 2026 and takes total approvals to 1,318 domestic games and 43 import games. This is also the first time that monthly approvals have exceeded 200 since March 2019. Although we note that import game approvals are down from 68 at this point last year. The domestic batch included 188 mobile games, 1 PC game and 20 cross-platform games, while the import games list included 4 mobile games and 1 cross platform games. New games from 37 Interactive, Shengqu, Sunborn, Changyou, Duoyi, Ourpalm, Yoozoo and Archosaur Games among others were approved. A total of 12 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN.

Notable domestic titles approved include Dragon Nest Classic (Shengqu), A Mortal’s Journey to Immortality (37 Interactive), and Tap Breakout (Sunborn), a spin-off in the Girls Frontline franchise. Notable import games include Solo Leveling: Arise (Netmarble), CookieRun: Tower of Adventures (Devsisters), Loop Hero (Devolver Digital), and Seal Online (Playwith). We expect over 2,000 domestic and import games to be approved this year.

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Games industry employment shifts towards APAC and China

Games industry employment is undergoing a significant geographic redistribution despite continued layoffs, according to data presented by Amir Satvat, general partner at 1Up Ventures and former Tencent executive, during the opening keynote at Gamescom Dev 2026. Satvat projects 14,666 games industry layoffs in 2026, approaching the 2024 peak of 15,631. Approximately 10,140 layoffs had already been announced by August 11, exceeding the 9,200 recorded across all of 2025. However, total global games industry employment has remained relatively stable, suggesting that job losses are increasingly being offset by hiring elsewhere.

Why this matters: The clearest shift is away from North America. Satvat estimates the region accounted for more than two thirds of tracked layoffs, losing approximately 25,000 roles, equivalent to 15% of its games workforce, over the broader period analyzed. California has been particularly affected, accounting for more than half of global layoffs during one 12 to 18 month period. Satvat attributed the geographic shift to factors including labor costs, government incentives, and talent availability. By comparison, available games industry roles increased 10% across APAC, including 12% growth in China, while Europe remained broadly flat.

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Chinese smartphones see another round of price increases

China’s smartphone market is facing another wave of price increases as Huawei, Xiaomi, and Honor raised retail prices for selected existing models by RMB 200 ($30) to RMB 1,000 ($149). The increases reflect continued pressure from memory shortages and rising semiconductor costs rather than the typical premium attached to new product launches. TrendForce estimates that memory prices have increased five to sevenfold since the beginning of 2025. Smartphone vendors are also expected to streamline their portfolios, with some higher specification models potentially delayed or cancelled.

Why this matters: We’re also seeing cost inflation broadening beyond memory with Qualcomm CEO Cristiano Amon saying in July that the company planned to increase product prices from September 1, adding further pressure to bill of materials costs for manufacturers dependent on its mobile chipsets. China’s smartphone shipments are forecast to decline by double digits YoY in 2026, meaning manufacturers must manage higher production costs while consumers simultaneously face higher device prices and weaker purchasing incentives. The impact is increasingly being felt across all of consumer electronics raising the likelihood of higher prices, reduced specifications, delayed products, and weaker upgrade cycles.

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Honor of Kings: Ace reaches 70M pre-registrations ahead of launch

Tencent will launch Honor of Kings: Ace, a strategy hero card battler based on the Honor of Kings IP, in China on September 10, 2026. The title has accumulated more than 70 million pre-registrations, providing Tencent with a substantial initial audience ahead of release. The project was first announced in 2022 as an auto chess style spinoff following the popularity of Dota Auto Chess, which helped establish the genre. It adapts familiar Honor of Kings heroes and characters into a more strategic format centered on team composition and card based mechanics. The game has undergone several years of development and multiple closed beta tests, including its most recent test in June 2026.

Why this matters: The title forms part of the company’s broader effort to expand Honor of Kings from a single evergreen MOBA into a multiplatform franchise spanning multiple genres. Tencent recently pursued a similar strategy with Honor of Kings World, an open world RPG spinoff. While the title has achieved moderate commercial success, it has not displaced China’s leading RPGs, demonstrating the challenge of translating the enormous popularity of Honor of Kings into comparable success across different genres. However, we note that Ace has seen significant pre-launch interest via our China Games & Livestreaming Tracker which shows high viewership of previous closed beta footage and the games release date announcement stream.

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Successful Onimusha launch reinforces Capcom strategy to revive dormant IP

Capcom plans to increase its focus on reactivating dormant IP following the strong launch of Onimusha: Way of the Sword, the franchise’s first mainline installment in more than two decades. Onimusha: Way of the Sword sold more than 1 million units worldwide on its September 4, 2026 launch day, taking lifetime sales for the Onimusha franchise above 10 million units since its debut in 2001. Capcom said prerelease demos and hands on showcases contributed to awareness among both existing fans and newer players. The performance provides further validation for Capcom’s strategy of extracting additional value from its extensive IP catalog.

Why this matters: Alongside annual releases for major franchises, the company said it intends to revive properties that have not received new titles recently, potentially allowing it to diversify its portfolio without relying exclusively on its largest franchises such as Resident Evil, Monster Hunter, and Street Fighter. However, Capcom is not limiting investment to established brands. Pragmata, a rare new IP from the company, launched in August and surpassed 1 million units within its first few days, demonstrating that Capcom continues to invest in original properties alongside franchise revivals.

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Dubai to expand partnership with Xsolla for new accelerator program

The Dubai Films and Games Commission has expanded its partnership with Xsolla through a new games accelerator program launching in October 2026, as the emirate continues to build infrastructure aimed at attracting and developing game companies. Announced during Gamescom 2026, the initiative will establish Dubai as home to only the second permanent Xsolla Club globally. The hub will give local, regional, and international developers direct access to Xsolla’s accelerator team and wider network, providing support across areas such as funding, commercialization, distribution, and market expansion.

Why this matters: The initiative builds on a partnership that began with an MoU in 2025 and has subsequently expanded into networking events, market research, and developer support. It also forms part of the broader Dubai Program for Gaming 2033, which aims to position Dubai among the world’s top 10 gaming hubs. According to the Dubai Films and Games Commission, Dubai now hosts 495 gaming companies, up 34.5% over the past two years. The emirate is targeting approximately 30,000 games industry jobs and nearly $1 billion in additional GDP contribution by 2033.

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Cygames announces new gaming brand, CygamesEdge

Japanese developer and publisher Cygames, best known for Umamusume: Pretty Derby and Granblue Fantasy, has established a new brand called CygamesEdge focused on supporting small and medium-sized development teams while leveraging Cygames’ existing development and publishing expertise. Its first announced project is Where the Seeds Fall, which is being co-developed with Japanese studio Zereo and will launch for PS5, Switch 2, and Steam on November 5, 2026. The multiplatform approach also reflects the continued shift among Japanese publishers toward simultaneous releases beyond individual console ecosystems.

Why this matters: CygamesEdge forms part of a broader strategy to pursue smaller projects that can be developed and released more frequently over shorter production cycles. Cygames has highlighted rising development costs and quality expectations as an industry challenge, with larger publishers committing increasing amounts of capital to individual games. Rather than concentrating its portfolio entirely around increasingly expensive projects, Cygames can use smaller teams and more compact development cycles to diversify its release slate, experiment with new concepts, and reduce the financial exposure attached to individual titles.

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Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Attendee: Narinder Kapur

Contact us to set up a meeting →

China’s video game market reached a new milestone in 2025, generating $51.8 billion in revenue, up 5.4% year-over-year and surpassing the $50 billion mark for the first time. Niko Partners' 2026 China Player Behavior and Market Insights Report forecasts the market will grow another 4.0% in 2026 to $53.9 billion, before reaching $59.8 billion by 2030, representing a five-year CAGR of 2.9%. Player spending continues to strengthen, with annual ARPU exceeding $70 for the first time in 2025 and projected to reach $77.68 by 2030. This solidifies China’s position as the world’s largest video games market by players, with the total player base forecasted to reach 769 million players by 2030.

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Blizzard launches Overwatch Rush soft launch in Indonesia with new progression and gameplay features

Overwatch Rush, Blizzard’s mobile exclusive top down hero shooter set in the Overwatch universe, entered soft launch in Indonesia on August 31, making Indonesia the first country to receive access before planned expansion to Malaysia and the Philippines. The standalone game builds on the popular Overwatch IP for PC and console. The staged release will allow Blizzard to test, learn and optimise the game before expanding its availability. Blizzard has also implemented gameplay improvements such as a redesigned tutorial, optional Aim Assist settings, enhanced communication tools, and clearer teammate status indicators, with the changes reflecting feedback from earlier testing phases.

Why this matters: Blizzard’s decision to launch Overwatch Rush in Indonesia before expanding to other Southeast Asian markets highlights the region’s growing importance for mobile first live service game testing and iteration. The game’s monetization includes optional bundles, credits, and cosmetic items, while Blizzard states that player skill remains the primary determinant of match outcomes and emphasizes that Overwatch Rush is a standalone mobile title developed separately from the main Overwatch team rather than a mobile port.

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Paving Pathways to Localize Games and Hardware: Research Brief by Niko Partners and Media City Qatar

The Gulf Cooperation Council (GCC) markets of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE are emerging as key opportunities for the global video games industry. In this research brief, Niko Partners and Media City Qatar examine the growing demand for Japanese games, IP, and hardware in the GCC. The brief looks at how Japanese companies are approaching the market and highlights the opportunities for global game companies looking to expand into the region.

Download the research brief here →

China’s gaming boom goes global: Why Chinese games are taking over Gamescom

Gamescom, which took place in Germany between August 26-30, saw several Chinese studios showcase their titles at the event. These studios have traditionally been overshadowed at conferences like Gamescom by North American, European, and Japanese developers. Niko Partners President & CEO Lisa Hanson sat down with CGTN to talk about the increased visibility of Chinese games at the event, including implications for the wider global video game industry.

Watch the interview here →

Holiday Inn and EStars launch esports gaming pods across four Saudi Arabian hotels

Holiday Inn, part of IHG Hotels & Resorts’ Essentials Collection, has partnered with global educational esports provider EStars to launch Elite Gaming Pods across 4 Saudi Arabian hotels following the Esports World Cup 2026. The gaming pods are available from August - December 2026 at Holiday Inn Riyadh Business District, Holiday Inn Riyadh Al Malaz, Holiday Inn Jeddah Corniche, and Holiday Inn & Suites Al Khobar, with each hotel featuring two dedicated gaming spaces equipped with MSI gaming PCs, next-generation consoles, curved monitors, premium accessories, and ergonomic seating.

Why this matters: Guests will receive complimentary access to esports titles including Fortnite, Rocket League, and Overwatch, while participating hotels will host tournaments, community events, influencer activations, and branded guest experiences with prizes including hotel stays, food and beverage vouchers, and IHG One Rewards points. Hospitality operators in Saudi Arabia are increasingly using gaming and esports experiences to attract younger consumers and create differentiated social venues. The initiative highlights how non-endemic sectors are investing in gaming engagement as Saudi Arabia continues expanding its esports ecosystem under Vision 2030.

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US looking into new semiconductor tariffs that could impact gaming hardware

The Trump administration is reportedly considering a new round of semiconductor tariffs that could significantly broaden the range of technology products subject to US import duties. One approach under discussion would apply tariffs not only to imported chips but also to products containing semiconductors, potentially including gaming consoles, PCs, laptops, GPUs, and data center servers. The proposal would build on the administration’s existing semiconductor trade policy. Commerce Secretary Howard Lutnick reportedly favors linking tariff relief to investment in US semiconductor manufacturing.

Why this matters: For the games industry, additional tariffs would arrive during an already challenging hardware cost environment. Console, PC, and component manufacturers are simultaneously facing higher memory costs as AI infrastructure demand increases competition for manufacturing capacity. If implemented broadly, the policy would add another variable to next generation hardware planning at a time when elevated component costs are already complicating product specifications, pricing, and launch timing.

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Tomb Busters surpasses 12 million DAU in China

Giant Interactive has confirmed that Tomb Busters has surpassed 12 million DAUs and 200 million downloads since its China launch in January 2025, establishing the title as one of the country’s largest recent mobile game breakouts. The free to play title combines extraction gameplay with cooperative horror inspired by Chinese folklore. Players explore tombs alone or in four player groups, encountering supernatural enemies, traps, puzzles, and random events. Its design deliberately contrasts tension during solo play with comedy and unpredictable social interactions in multiplayer, helping the game generate viral moments across livestreaming and social platforms. Tomb Busters has also performed particularly well among younger and female players.

Why this matters: Tomb Busters popularity has led to major titles including Identity V, Justice Online, Eggy Party, Peacekeeper Elite, and Party Stars introducing their own limited modes incorporating similar cooperative horror and social gameplay concepts. While comparisons have been drawn with Lethal Company, Tomb Busters differentiates itself through mobile accessibility, Chinese horror themes, and AI driven NPCs designed to mimic human behavior and interact dynamically with players. Tomb Busters demonstrates the growing potential of socially driven, light entry, deep engagement games in China.

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miHoYo diversifies portfolio with Nodusfall

Chinese game developer miHoYo unveiled Nodusfall during Gamescom 2026 Opening Night Live, marking a significant departure from the visual style, gameplay structure, and monetization systems associated with Genshin Impact, Honkai: Star Rail, and Zenless Zone Zero. Nodusfall is a free to play fantasy action RPG centered around large scale encounters that can be tackled either solo or cooperatively, drawing comparisons with Monster Hunter. Its darker fantasy aesthetic also represents a departure from the anime influenced presentation that has become closely associated with HoYoverse globally. More significantly, miHoYo has confirmed that Nodusfall will not use gacha mechanics to unlock playable characters.

Why this matters: While its complete monetization model has yet to be detailed, the change is more in line with what we’ve seen from titles like Where Winds Meet that offer what is an essentially $70 AAA premium experience, but at no cost and with no pay to win elements. The shift comes as miHoYo expands the number and variety of games it operates simultaneously. Its upcoming portfolio also includes Petit Planet, a life simulation game that similarly moves into a genre outside the action RPG and turn based RPG categories where the company has established its largest audiences. miHoYo is aiming to diversify its portfolio following concerns that it is cannibalizing its audience and spending between titles.

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Kuaishou launches Lord of Mysteries in China

Kuaishou has launched Lord of Mysteries across multiple platforms on August 21, 2026. The open world MMORPG, adapted from the popular Chinese web novel of the same name, reportedly had a total development and marketing investment of RMB 1.2 billion ($179 million), making it one of China’s highest profile MMO launches this year. The game debuted at #1 on China’s iOS game download chart and #13 by game revenue. Kuaishou indicated that iOS represents approximately 15% of the game’s total revenue, suggesting Lord of Mysteries generated around $20 million across all platforms during its first week.

Why this matters: Kuaishou said the initial performance has met its commercialization expectations. Player acquisition was also strong, with 1 million registrations added within one hour and more than 5 million within 24 hours of launch. The game’s graphics, world building, and adaptation of the original IP have received praise, but it has yet to demonstrate broader breakout appeal beyond its initial audience. The launch will provide a strong case study as to whether a nearly $200 billion budget for a F2P cross platform MMORPG is sustainable.

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Xiaohongshu to host Red Land 2026 in October

Xiaohongshu (RedNote) will hold RED LAND 2026 from October 2 to October 6 on Fuxing Island in Shanghai, marking the second consecutive year that the social platform has hosted its large scale gaming and ACG event at the location. This year’s event will feature more than 100 game and anime IPs, approximately double the 2025 total. The lineup includes major Chinese games such as Honor of Kings, Black Myth: Wukong, Genshin Impact, and Honkai: Star Rail, alongside international entertainment IP including Disney’s Zootopia, Marvel, Cyberpunk 2077, and The Witcher 3: Wild Hunt. Some game producers will also attend booths to interact directly with players. The event last year had over 100,000 attendees according to organizers.

Why this matters: The expansion reflects gaming’s growing importance within Xiaohongshu’s content ecosystem. By 2025, the platform had surpassed 120 million monthly active users for game related content, while annual gaming content posts increased 147%. Xiaohongshu separately reported 137 million users interested in ACG content, with categories including fan creations, original characters, and cosplay experiencing rapid growth. Xiaohongshu has become particularly relevant for reaching female gamers and ACG audiences in China, complementing more established gaming platforms such as Bilibili and Douyin.

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Lenovo prices cloud gaming handheld at RMB 2,199

Lenovo has launched the Legion Cloud Gaming Handheld C700 in China, expanding its gaming hardware portfolio with a dedicated handheld built around Tencent’s START cloud gaming platform. The 8GB RAM and 256GB storage model is priced at RMB 2,199 ($327), while pricing for the 6GB and 128GB model has not been announced. The C700 is primarily designed to stream games rather than run demanding PC titles locally. However, Lenovo’s proprietary Legion Stream protocol and bundled dongle enable one touch streaming directly from a user’s PC over a local connection without requiring internet access. This gives the device a secondary use case as a remote play handheld for existing PC gamers.

Why this matters: The launch represents a different proposition from higher performance handheld PCs, including Lenovo’s own Legion Go products. By shifting processing requirements to the cloud or an existing gaming PC, Lenovo can offer a lower priced device while still providing access to higher fidelity PC and console style experiences. However, the device is still priced higher than the PlayStation Portal which costs $249. The C700 provides another test of whether there is meaningful consumer demand for dedicated cloud gaming hardware. Cloud gaming consumption is currently concentrated on multipurpose smartphones, PCs, TVs, and tablets, reducing the need for consumers to purchase a separate device.

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Roblox plans Riyadh headquarters to expand creator ecosystem across MENA

Roblox plans to establish a regional headquarters in Riyadh to support creators across the Middle East and North Africa, with backing from Saudi Arabia’s Ministry of Investment, Riyadh Creative District, and the General Authority of Media Regulation. The company said the new office will support Saudi Arabia’s creator ecosystem and its ambitions to become a global gaming hub, while Saudi Arabia remains one of Roblox‘s most popular and top-grossing markets. The expansion builds on Roblox‘s partnership with Savvy Games Group, which focuses on creator development and the use of Roblox as an educational platform for STEM learning among Saudi students, creators, and studios.

Why this matters: Roblox CEO Dave Baszucki said the partnership aims to lower barriers to game development and expand creator opportunities while supporting the growth of Saudi Arabia’s creator ecosystem. The announcement comes one year after local regulators proposed banning the platform over child safety concerns. Since then, Roblox has been working to bring Arabic voice moderation to the platform and to ensure that its entire platform is compliant with local regulations. Roblox‘s regional headquarters could strengthen the MENA creator ecosystem and encourage further platform-led investments in talent development and user-generated content across the region.

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Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

Contact us to set up a meeting →

Gamescom is taking place in Germany this week between August 26-30, starting with a two-hour opening show hosted by Geoff Keighley that showcased new gameplay from titles such as Final Fantasy VII Revelation, The Witcher 3: Wild Hunt remastered, and Gears of War E-Day. One of the more notable aspects of the show was the sheer number of video games showcased by China and Korea based game developers, who have traditionally been overshadowed at events like Gamescom by traditional North American, European, or Japanese developers.

Why this matters: Niko Partners counted more than 20 games during the opening show from China and Korea based game developers, including the unveiling of Nodus Fall from miHoYo, its new co-op action game, and Project Zeta from Krafton, its 4-team tactical hero arena brawler. While Chinese and Korean developers have traditionally dominated in the MMO and mobile space, we continue to see more premium AAA games, multi-platform titles, and genre diversification from these developers, who are now competing with established studios from around the world.

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Livestreaming Tracker July 2026 Highlights: miHoYo’s RPG Portfolio Leads China’s Livestreaming Ranking

RPG titles dominated China’s livestreaming landscape in July 2026, ranking among the month’s most-watched content. According to Niko Partners’ China Games & Livestreaming Tracker, RPG remained one of the leading genres by viewership, driven by strong performance across miHoYo’s portfolio. Its three RPG titles collectively generated nearly 160 million in Niko Index viewership, placing all three among the top five most-watched RPGs in China during the month.

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Meet Niko Partners at Tokyo Game Show

Niko Partners is heading to Tokyo Game Show 2026. Niko’s Darang Candra Director for Southeast Asia and East Asia Research is looking forward to connect and share our latest insights at Japan’s largest gaming event. See you there!

Meet us there →

Love and Deepspace sees player spending rebound following new update

Papergames’ Love and Deepspace briefly returned to #5 on China’s iOS game revenue chart following the launch of its major Po Zhen Zi update on August 17, 2026, providing an early indication of renewed player spending after the disruption caused by the Valko controversy. The rebound follows a difficult July, when third party estimates indicated that mobile revenue declined nearly 70% MoM. The decline coincided with controversy surrounding planned character Valko, who was ultimately removed following extensive backlash from Chinese players. The decision also generated opposition overseas, where some players organized campaigns calling for the character’s reinstatement.

Why this matters: Po Zhen Zi represents the game’s first major opportunity to rebuild spending momentum following the controversy. Initial monetization was strong, with Love and Deepspace jumping from #85 to #5 on China’s iOS game revenue chart following the update. However, the title subsequently fell out of the top 10 relatively quickly. While this indicates the game retains a sizable core audience willing to spend around major character and narrative updates despite the recent controversy, the short duration of its top 10 position means it is too early to interpret the increase as a sustained recovery. Right now, this looks to be one of the worst performing updates indicating that the controversy is still having a material impact.

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Esports World Cup wins for Chinese team AG.AL

China based AG.AL has won the 2026 Esports World Cup Club Championship, finishing ahead of defending champion Saudi Arabia based Team Falcons after seven weeks of competition in Paris. AG.AL received the championship trophy and $7 million first place prize. The 2026 EWC brought together more than 2,000 players representing 200 clubs and over 100 countries, competing across 25 tournaments covering 24 games. The event offered a record $75 million prize pool, reinforcing its position as the largest multi title esports competition by prize money.

Why this matters: Despite having to relocate from Riyadh to Paris at the last minute, the tournament has been a notable success for the Esports Foundation with more than 850 million viewers tuning in across 100 broadcasts and OTT partners across 47 languages, generating 440 million hours watched. Peak concurrent viewership reached 4.3 million during the League of Legends competition. Approximately 175,000 tickets were sold, up 94% YoY, while Fan Fest, tournament venues, and wider city activations generated a combined 2 million visits.

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Krafton expands in-game advertising business in India

Krafton Ad Platform India (KADP India) has launched an advertising technology business in India, initially taking responsibility for advertising operations within Battlegrounds Mobile India (BGMI). The company was established in April 2026 following Krafton’s acquisition of a majority stake in South Korean adtech company Neptune in April 2025. Under its partnership with Krafton, KADP India will manage BGMI‘s advertising inventory planning and design, campaign delivery, optimization, and operations. However, its longer term ambitions extend beyond Krafton’s own games, with plans to partner with additional premium digital media platforms in India.

Why this matters: BGMI has accumulated more than 260 million registered users in India since its 2021 launch, giving the platform a substantial gaming audience for brands seeking to reach younger, digitally engaged consumers. Krafton has already developed BGMI into an advertising and brand collaboration platform with partnerships including Royal Enfield, Mahindra, Hero MotoCorp, and PepsiCo, demonstrating interest from major Indian automotive and consumer brands in reaching the game’s audience. Establishing dedicated advertising infrastructure could improve monetization per user while giving Krafton greater control over brand partnerships and advertising data.

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NetEase reports Q2 2026 earnings

NetEase reported Q2 2026 revenue of RMB 30.1 billion ($4.44 billion), up 7.9% YoY. Operating profit was RMB 12.1 billion ($1.78 billion), up 33.4% YoY. Operating profit margin increased to 40% from 32% last year. Revenue from Games and related value added services reached RMB 25.0 billion ($3.69 billion), up 9.7% YoY. Revenue from online games was RMB 24.4 billion ($3.60 billion) up 10.3% YoY while revenue from value added services declined 9.2% YoY to RMB 601 million ($89 million). Total games gross profit was RMB 19.0 billion ($2.8 billion), up 18.9% YoY with margin at 76.1% compared to 70.2% in the same period last year. The YoY increase in online games revenue was attributable to higher net revenues from self-developed games, such as the Fantasy Westward Journey franchise and Where Winds Meet.

Why this matters: NetEase continues to see strong growth from its legacy franchises including the Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice (Justice Online) and Where Winds Meet. In terms of new games, Sea of Remnants launched in China in July 2026, while development of Ananta and Blood Message remain on track. On the conference call, NetEase spoke about how Sea of Remnants had received a lot of critical feedback from players, with the company attributing this to poor onboarding and a high learning curve for the roguelike mechanics. On AI, NetEase sees GenAI as an amplifier that can accelerate the development speed of its games and improve the user experience for players.

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Perfect World reports positive H1 2026 earnings driven by Neverness to Everness

Perfect World reported H1 2026 revenue of RMB 2.75 billion ($409 million) and a net loss attributable to shareholders of RMB 118 million ($17.6 million). The company attributed the loss primarily to accounting timing associated with the launch of Neverness to Everness (NTE), where substantial marketing expenses were recognized immediately while player spending is recognized as revenue over the estimated player lifecycle. Total player spending for NTE has now exceeded RMB 2 billion ($298 million), up from more than RMB 1.4 billion ($208 million) as of June 30. Overseas revenue accounted for nearly 60% of cumulative spending. Perfect World is continuing development across MMO and newer game categories, increasing overseas expansion, and using smaller development teams to explore new opportunities with lower investment risk.

Why this matters: Notably, fans have called out NTE and Perfect World for using generative AI elements in the game. Most recently an image of a seahorse was found to have a watermark for the free version of Doubao AI. Perfect World has previously admitted that AI tools are used for background images and not the main characters or story elements. However, this does not seem to have impacted spending in a material way.

Link to original article (Chinese) →

MBC announces 1001: Threads of Mizan based on Arab lore

MBC Game Studio, owned by Saudi Arabian broadcast company MBC, has unveiled its first game titled 1001: Threads of Mizan. The game is a sprawling Arabian fantasy adventure with colossal boss battles and cooperative play with up to three players. It’s being branded as a AAA game and is set to release on PS5, Xbox Series X|S, Nintendo Switch 2 and PC. The studio is led by CEO Daniel Engelhardt and COO Trevor Williams, alongside a global team drawn from acclaimed studios including BioWare, Hi-Rez, Ubisoft Montréal and Bungie.

Why this matters: MBC Group is the largest media company in the Middle East and first started exploring the video games industry in 2022 when it signed an agreement with Saudi Arabia’s NEOM to create a AAA game development studio in the region. The initiative is part of a larger drive to grow the games industry in Saudi Arabia in line with Vision 2030 and showcase its stories via games on the global stage. Chinese developers proved they could compete in the premium AAA game space with Black Myth: Wukong, and MBC Group is now looking to do the same with Threads of Mizan.

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Alibaba sells Lingxi Games to Trustar Capital for more than $1.5 billion

Alibaba has sold Lingxi Games to private equity firm Trustar Capital in a transaction valued at more than $1.5 billion, as Alibaba withdraws from development to concentrate investment on core ecommerce and AI businesses. Lingxi was established as a standalone brand in 2019, building on Alibaba’s existing games operations and its $1 billion acquisition of Ejoy in 2017. Ejoy was founded by former NetEase COO Zhan Zhonghui and became an important foundation for Alibaba’s attempt to establish itself as a major Chinese game developer. Other large technology companies including ByteDance have also sold off studios like Moonton recently, although we note that it continues to operate an internal game development business.

Why this matters: Lingxi’s biggest commercial success was strategy game Three Kingdoms Tactics, which has generated more than $2 billion globally. However, revenue from the title has declined as it has matured, and Lingxi has struggled to develop a second game of comparable scale. Its position within Alibaba also limited the resources available for larger and potentially higher risk investments. The acquisition could provide Lingxi with greater operational independence and potentially more flexibility to invest in new products outside Alibaba’s strategic priorities.

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South Korean esports org DRX launches division for game publishing

South Korean esports organization DRX is expanding into game publishing and scripted entertainment as part of a broader strategy to develop into a digital entertainment and IP company. DRX has signed agreements related to two unannounced K-drama projects and is preparing to publish its first game, a casual mobile title. Production will be led by marketing agency WebsCreative, which joined the DRX group in 2022 and is now being expanded into a content IP subsidiary covering game publishing, content development, investment, and production.

Why this matters: The strategy represents a significant diversification from DRX’s core competitive gaming operations. The organization is best known internationally through its esports teams, particularly in League of Legends and Valorant, providing an established gaming audience and brand that could potentially support customer acquisition and promotion for its own entertainment products. DRX, like many esports teams today, are aiming to diversify away from relying primarily on the economics of operating professional esports teams.

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Events

Tokyo Game Show

September 17-18, 2026 (Business Day)
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

Contact us to set up a meeting →

RPG titles dominated China’s livestreaming landscape in July 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that RPG remained one of the most-watched genres in China’s livestreaming market in July 2026, led by strong viewership across miHoYo’s portfolio.

• miHoYo delivered a strong portfolio-wide performance in July, with four tracked titles recording double-digit percentage growth. Together, the three miHoYo RPG titles generated a combined Niko Index (viewership) of nearly 160 million and occupied three of the top five RPG positions in July.

• Genshin Impact ranked #1 among RPGs in July, with a Niko Index of 67.8 million, up 55% MoM. Bilibili alone recorded 25.6 million views on a single day, July 31, driven by its Version 7.0 preview special. key updates including its snowy open-world areas, train network and two new playable characters, Odette (5-star) and Alyosha (4-star).

• Honkai: Star Rail achieved the strongest growth among miHoYo’s released titles, rising 73% MoM to 47.9 million. Bilibili alone recorded 21.2 million views on a single day, July 3, driven by its Version 4.4 preview livestream. The version was later launched on July 15, featuring a limited five-star character and the second phase of the Fate/Stay Night crossover story collaboration, which took place from July 24, helping boost its position on the mobile game and live streaming charts.

• Zenless Zone Zero increased to 44.2 million viewers (+34% MoM) amid its 2nd anniversary celebration Version 3.0 in-game content, along with announcing a collaboration with KFC which helped propel livestreaming viewership. Bilibili alone recorded 22.3 million views on a single day, July 17, driven by its Version 3.1 anniversary preview livestream, which was later launched on July 29. The version included the addition of Remiel as the first playable void hunter in the game

The above is an extract from our China Games & Livestreaming Tracker July 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!

Chinese developer S-GAME opened preorders for Phantom Blade Zero on August 12, 2026, with the martial arts action RPG immediately reaching #1 on Steam’s global top-sellers chart, driven primarily by demand from China. The game will launch for PlayStation 5 and PC on October 29, 2026, priced at RMB 268 ($37) for the standard edition and RMB 328 ($46) for the digital deluxe edition. Preorders launched alongside an 11-minute trailer that generated approximately 8 million views on Bilibili within one day.

Why this matters: Sony is almost treating Phantom Blade Zero as a first party title with a dedicated State of Play presentation, making S-GAME the first Chinese developer to receive a standalone edition of PlayStation’s showcase, something that was typically for US and Japanese games previously. Phantom Blade Zero comes two years after Black Myth: Wukong put AAA Chinese single player games on the map, although we do not expect the game to be as popular globally.

Link to original article (Chinese) →

Niko Partners to speak at LA Games Conference

The LA Games Conference returns September 30 at the UCLA Palisades Ballroom, bringing together leaders from across the games industry for a one-day summit focused on the issues shaping the business. The conference features two key tracks: Business & Finance (Investment, publishing, and growth strategies) and Legal, Policy & Regulation (IP, compliance, and the evolving regulatory landscape).

Niko Partners CEO Lisa Hanson will share insights on what the games business could look like in 2030. Interested to learn more? Sign up here and use code NikoPartners20 for 20% off.

Meet us there →

Unlock new opportunities from Southeast Asia’s most populous video games market

Did you know that Indonesia has the largest gaming audience in Southeast Asia, with more than 126 million gamers? The market is also set for strong revenue growth, with player spending expected to reach $1.5 billion by 2030, alongside continued growth in Thailand and the Philippines. Increasing smartphone ownership and internet penetration are one of the reasons behind the rising number of new players in high-population markets.

Learn more about Southeast Asia’s emerging video game market in Niko Partners’ SEA Player Behavior & Market Insights Reports here.

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Inaugural Esports Nations Cup delayed a whole year to November 2027

The Esports Foundation (EF) announced via a press release that the first Esports Nations Cup (ENC), which was originally scheduled to take place in November 2026 in Riyadh, will be postponed to November 2027. This is mainly due to the ongoing regional conflicts that have wrought instability and uncertainty in the middle east. The EF also shared that all existing ENC commitments, development funds and sponsorship deals will remain in place, as they will work with all partners and nations to mitigate any costs, and to rework qualifications to fit this postponement.

Why this matters: The decision to postpone this event comes as a slight shock given the Esports World Cup 2026 was instead relocated to Paris. Although it’s worth noting that the EWC was already an established event and had already looked into moving the event outside of the country prior. Saudi Arabia is perhaps hoping that an esports event with national pride on the line would bring in more tourism and attention than the Esports World Cup, much as the FIFA World Cup gets more attention than the Champions League, and as such are unwilling to compromise with the ENC.

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The Pokemon Company selects Singapore as a major hub for its 30th anniversary celebrations

The Pokemon Company has announced a major 30th anniversary celebration in Singapore, partnering with Changi Airport, Jewel Changi Airport, and The Kallang to host a series of events and fan activities on November 7-8, 2026. Shopping promotions and themed activities will also run from November 2026 into early 2027 and Pokemon GO will feature a regional in-game experience tied to the anniversary celebrations.

Why this matters: The Pokemon Company’s decision to anchor its 30th Anniversary celebrations in Singapore highlights the country’s growing importance as a consumer market and regional hub for gaming and entertainment brands. The scale of these activations demonstrates how major IP holders are increasingly using Southeast Asian markets to drive fan engagement, merchandise sales, and broader ecosystem growth.

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Game Science won’t use AIGC for creative content in Black Myth: Zhong Kui

Game Science cofounder and Black Myth series art director Yang Qi has confirmed that the studio will avoid generative AI tools during the design and game asset production stages of Black Myth: Zhong Kui, instead relying on traditional human led development. He clarified that the studio is not opposed to AI technology, but has deliberately chosen to keep AIGC away from the project’s core creative processes at its current stage.

Why this matters: The decision is particularly notable given the rapid adoption of generative AI across China’s games industry. CADPA reported at ChinaJoy 2026 that approximately 86% of Chinese game developers are now using AI technologies in some capacity, while major companies are increasingly integrating generative AI directly into development pipelines. Niko Partners research shows that players of AAA premium games tend to be more vocal about poor uses of AI in video games, while mobile players are more accepting.

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Tencent announces PUBG Mobile Light to expand PUBG Mobile player base

Tencent’s Lightspeed Studios has revealed PUBG Mobile Light, a new version of PUBG Mobile designed to reduce hardware and storage requirements while retaining the core experience of the standard game. The new version will include Erangel and the same core combat experience, while existing players can transfer their items, outfits, and other cosmetics by signing into their PUBG Mobile account.

Why this matters: Light versions of mobile games are not new, and Tencent previously released a version of PUBG Mobile Lite years ago. Unlike the existing PUBG Mobile Lite, which achieves lower hardware requirements by reducing content and features, PUBG Mobile Light is intended to offer the same experience as the core game but with a lower device footprint. This approach reduces the risk of fragmenting PUBG Mobile‘s player base.

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Shining Nikki returns to China’s iOS game revenue top 10 chart thanks to 7th anniversary

Papergames’ Shining Nikki returned to the top 10 of China’s iOS game revenue chart following the launch of its seventh anniversary update on August 5, 2026, demonstrating continued spending engagement for a title that has now operated for seven years. The anniversary campaign combined new in-game content with physical exhibitions and player creation initiatives. Its seventh anniversary CGI video also surpassed 4 million views on Bilibili, becoming the game’s most viewed video since launch.

Why this matters: The performance is particularly notable amid the ongoing Love and Deepspace controversy, which has disrupted another of Papergames’ major female oriented titles. While the two products serve different audiences and operate independently, Shining Nikki‘s anniversary performance demonstrates the continuing strength of Papergames’ broader portfolio. We also note that game anniversary celebrations in China are increasingly combining in-game and offline elements to engage the entire player base.

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Xsolla expands local payment options across Asia Pacific and other markets

Global video game commerce company Xsolla announced the addition of more than15 new payment methods to Xsolla Payments ahead of Gamescom 2026, with the new additions include markets across Asia and Oceania, EMEA, and the Americas. New additions include Mandiri in Indonesia, ShopeePay in the Philippines, Line Pay in Chinese Taipei, Octopus in Hong Kong, 7/11 (Konbini) in Japan, and Zip Co in Australia.

Why this matters: Expanding localized payment support remains a key strategy for increasing game spending conversion, particularly in emerging Asian markets where players prefer domestic payment methods. The expansion is intended to help developers and publishers offer payment options that align with player preferences across different regions.

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Events

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

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Niko Partners Vice President Zeng Xiaofeng shared his observations from ChinaJoy 2026 in this new blog post. The event concluded with record attendance, drawing 438,900 visitors and more than 900 companies from 35 countries. The 2026 edition theme “Level Up with AI,” showcased the growing role of AI in China’s games industry, where 86% of game developers now utilize AI.

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India’s gaming market surpasses $1 billion for the first time - New Niko Partners research

India’s gaming market crossed a major milestone in 2025, surpassing $1 billion in revenue for the first time. At $1.04 billion, the market grew 14.8% YoY, making India the fastest-growing video game market tracked by Niko Partners.

What’s fueling this growth? Read the highlights and download key takeaways from Niko’s latest India Player Behavior and Market Insights Report.

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Konami celebrates Yu-Gi-Oh! Master Duel reaching 100 million downloads

Konami Digital Entertainment announced that Yu-Gi-Oh! Master Duel has surpassed 100 million cumulative downloads worldwide and launched a commemorative in-game campaign beginning August 5, 2026. The celebration also introduces new selection and secret packs featuring alternate-art and over frame cards, alongside the return of previously released alternate-art cards.

Why this matters: The100 million download milestone highlights the long-term global appeal of established trading card game IPs and the effectiveness of live service content updates in sustaining engagement. This comes after the Pokémon Trading Card Game Pocket also surpasses 100 million downloads. Niko Partners has tracked a resurgence in the popularity of trading card games over the past few years, driven both by physical and digital releases.

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Love and Deepspace sees major revenue hit after Valko controversy

According to Sensor Tower data, Love and Deepspace generated just over $10 million in iOS and Google Play revenue during July 2026, a sharp decline from approximately $40 million in June. Prior to July, the title had consistently generated more than $30 million in monthly revenue. While Sensor Tower does not track Android revenue in mainland China, market checks indicate that spending has also declined across Chinese Android channels. The revenue decline coincides with the ongoing controversy surrounding the canceled love interest Valko, which has significantly disrupted Papergames’ live service roadmap.

Why this matters: The controversy has expanded beyond the game’s player community. Papergames withdrew Love and Deepspace from Bilibili World 2026, one of Asia’s largest anime and gaming conventions, citing the ongoing situation. Chinese state media and the Ministry of Public Security also publicly criticized aspects of Valko’s promotional material, including slogans that were interpreted as trivializing home intrusion and violence against women. Although the game remains in operation, Papergames have not confirmed whether Valko will ever return, leaving uncertainty around future content plans.

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Indonesian government aims to reactivate game rating system in 2026 following policy review

The Indonesian Ministry of Communication and Digital (Kemkomdigi) said the reactivation of the Indonesia Game Rating System (IGRS) is targeted for 2026 following a comprehensive evaluation of the rating system and related policies, although an exact reactivation date has not been announced. The review began after IGRS implementation was postponed in April 2026 and includes participation from gaming industry stakeholders such as the Indonesian Games Association (AGI), government agencies, and representatives from parent communities

Why this matters: The suspension followed public criticism over the incorrect display of IGRS ratings on the Steam platform in April 2026, prompting Kemkomdigi to establish a special investigation team to review the system, processes, and governance. Indonesia’s review of IGRS highlights the challenges of implementing national game classification systems across global distribution platforms such as Steam.

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China applies ecommerce tax rules to skin trading

Chinese Counter Strike 2 (CS2) players conducting large scale skin trading are reportedly being contacted by local tax authorities following the implementation of broader internet platform tax reporting rules. The development is not the result of new regulations targeting virtual items or games specifically, but rather the enforcement of ecommerce tax rules introduced in June 2025, which require online platforms to report qualifying transaction data to tax authorities.

Why this matters: Importantly, the measures are not directed at ordinary players or collectors. Instead, the rules target individuals engaged in sustained, profit driven trading activity, treating them similarly to other online merchants operating at commercial scale. Although the measures are unlikely to affect typical players, they reinforce that valuable in game items are increasingly being treated as taxable digital assets when traded commercially.

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Nintendo to officially launch Nintendo Switch 1 & 2 in Indonesia

Nintendo will officially launch the Nintendo Switch and Nintendo Switch 2 in Indonesia in December 2026, establishing a formal hardware presence in one of Southeast Asia’s largest gaming markets. Distribution will be managed by Nintendo Singapore and PT Nusantara Interactive Niaga, part of Indonesia’s Salim Group and Nintendo’s official local partner. Nintendo will also officially distribute its latest Pokémon titles in the market.

Why this matters: Indonesia represents the latest stage of Nintendo’s expansion across Southeast Asia. The company previously strengthened its presence in Singapore, Malaysia, and Thailand, including the introduction of local Nintendo eShop services, as it gradually builds official infrastructure across the region. However, we do note that Nintendo has yet to confirm eShop support for Indonesia at this point.

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Chinese court rules that online game accounts can be inherited

A Beijing court has ruled that the usage rights to online game accounts can be inherited, following multiple similar cases over the past few years. The most recent case involved a mother seeking to inherit her late son’s 87 online gaming accounts after his death in 2025. The game company initially refused to transfer the accounts, citing its user agreement, which states that it retains ownership of all account related data, including game characters, virtual items, and in game currency.

Why this matters: The court ruled that a heir held the right to use the account, but that ownership and continued access to the game lied with the company. The ruling builds on China’s broader recognition of digital property rights. Since the Civil Code came into effect in 2021, digital assets have received legal protection, and in 2025 the Supreme People’s Court introduced a dedicated category for disputes involving data and virtual property. Over time, this could influence how game companies structure user agreements, account transfer policies, and digital asset management, particularly as the value of virtual goods and long lived game accounts continues to increase.

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Events

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

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India’s gaming market reached a major milestone in 2025, generating $1.04 billion in revenue, up 14.8% year-on-year and exceeding $1 billion for the first time. According to Niko Partners’ forecasts, revenue will continue growing to nearly $1.2 billion in 2026 before reaching $1.77 billion by 2030, representing a five-year CAGR of 11.2%. India remains the fastest-growing video game market among the ones tracked by Niko Partners.

Market growth is being fueled by both scale and engagement. Niko Partners estimates that India recorded 511 million players in 2025, with this figure expected to cross 550 million in 2026, and reach over 700 million by 2030. However, while this places India as having one of the largest player bases in the world, monetization remains at an early stage, with ARPU reaching $2.04 in 2025 and forecast to grow to $2.52 by 2030. This combination of a massive audience and increasing spending makes India an attractive opportunity within the global games market.

Why India’s Gaming Market Is Growing

The primary driver of market growth is continued spending on mobile games. As digital adoption expands and disposable incomes rise among certain consumer segments, India is seeing a growing proportion of high-spending players contribute to overall market revenue.

The market is also becoming more diverse. While battle royale and casual games remain important, Niko Partners is observing growing audiences for a wider range of genres across mobile, PC, and console platforms. These audiences may be smaller in size, but they often generate higher value and engagement, creating new opportunities for publishers seeking growth beyond mainstream genres.

Several long-term trends are expected to shape India’s gaming industry over the next five years:

• Growing engagement with genres beyond battle royale and casual games.

• Increasing player engagement with legacy PC titles.

• More support for gaming from both national and state governments.

• Rising participation in esports, leading to deeper engagement and stronger gaming communities.

• Greater opportunities for publishers that can effectively target specialized player segments.

Together, these trends are helping transform India from a high-volume gaming market into a more mature and diversified gaming ecosystem.

UGC Platforms Continue to Expand While Attitudes Toward AI Shift

User-generated content (UGC) platforms such as Roblox and Minecraft are becoming increasingly popular among Indian players, particularly younger audiences. Even roleplay within Grand Theft Auto has become popular on livestreaming platforms. These platforms combine social interaction, creativity, and highly shareable gameplay experiences, making them especially attractive to digitally native consumers.

At the same time, Niko Partners has observed a notable shift in sentiment when it comes to Generative AI. Compared with previous years, Indian players are becoming more cautious about how AI is being used by both developers and players. Economic concerns appear to be a key factor driving this change, particularly as discussions around AI’s impact on employment become more prominent in the country.

As AI adoption accelerates across industries, gaming companies operating in India will need to balance innovation with player expectations regarding transparency, authenticity, and trust.

Some of the key takeaways from the report:

• Female participation in gaming continues to increase, rising from 43% of players in 2023 to 49% in 2026.

• Non-battle royale mobile games are capturing a larger share of market revenue, increasing from 53.2% of mobile game revenue in June 2023 to 62.8% in June 2026.

• 31.5% of Indian players prefer purchasing in-game content outside traditional app stores, including web stores, third-party stores, and top-up cards.

• UPI dominates gaming payments, with 84.6% of Indian players having used a UPI-based payment method, significantly higher than credit card usage at 31.5%.

Fill out this form to download select key takeaways from the report.

These findings highlight a gaming market that is becoming more diverse, more sophisticated, and increasingly attractive to publishers, developers, payment providers, and investors. While India’s large player base remains one of its defining strengths, future growth will be driven by deeper engagement, evolving player preferences, alternative payment solutions, and the emergence of higher-spending audiences.

At Niko Partners, we help businesses turn market intelligence into action. Through our syndicated research, subscription-based insights, and custom consulting services, we provide the data, analysis, and strategic guidance needed to navigate the rapidly evolving gaming markets across Asia and MENA. Whether you are evaluating market expansion opportunities, analyzing player behavior, assessing monetization strategies, or tracking regulatory developments, our research helps organizations make informed business decisions with confidence.

Contact us to learn how Niko Partners can help your organization identify growth opportunities and build successful strategies in one of the world’s fastest-growing gaming markets.

Garena has announced Palworld Online, a mobile MMORPG officially licensed by Pocketpair and scheduled for release in 2026. The game is developed by Garena’s Singapore team and reimagines the original Palworld PC and console game for mobile while expanding it into a persistent online world with a new storyline, seamless open-world exploration, and multiplayer gameplay. Garena stated that it is working closely with Pocketpair to preserve the core gameplay and freedom of the original title while adapting it for mobile audiences.

Why this matters: Palworld was a surprise hit in 2024 and recently surpassed the 40 million players milestone ahead of its full 1.0 release last month. The launch on Steam and Xbox Game Pass, with a PlayStation 5 launch shortly after, has helped the game reach a broad audience globally, and Pocketpair is now looking to reach an even larger audience with a mobile release. Garena is a strong partner for mobile game development given its success with the Free Fire franchise and its strong distribution capabilities across Asia.

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Southeast Asia’s Games Market Heads Toward $7B by 2030 - New Niko Partners Research

Southeast Asia’s games market is on track to reach $7 billion by 2030. While the region continues to grow, each of the six notable markets that Niko Partners tracks is following its own unique path.

High-population markets such as Indonesia, the Philippines, and Vietnam are emerging as increasing smartphone adoption and improved internet access bring millions of new players into gaming. Meanwhile, more mature markets such as Malaysia, Singapore, and Thailand are driving growth through localized content, thriving esports scene, and strong community engagement.

Discover more key insights and download the select takeaways from Niko Partners’ Player Behavior & Market Insights Reports.

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PGDX 2026 Highlights from Niko Partners

The Philippine Game Development Expo returned in 2026, organized by CBZN Perspective and the Game Developers Association of the Philippines (GDAP), and was held on July 24-26 at the SMX Convention Center Manila. The event showcased the growth of the Philippine game development ecosystem. The expo featured more than 60 indie game exhibitors, highlighting locally developed titles such as Polychroma Games’ Until Then and Yangyang Mobile’s High Times, alongside international developer showcases.

Darang Candra, Director for Southeast Asia and East Asia Research at Niko Partners, also attended the event and spoke at the Trends in Southeast Asia’s Games Market panel.

Why this matters: Beyond game showcases, PGDX 2026 served as a platform for developers and players to connect through community activities, workshops, and industry networking opportunities. The event also showcased the growth and visibility of Filipino game creators in the global gaming market.

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Niko Partners at GameForge 2026

Niko Partners Senior Analyst Narinder Kapur will share our latest insights at GameForce 2026 in Mumbai on August 10. The event,co-hosted by the Indian Digital Gaming Society (IDGS) and Jio Institute, will bring together representatives from the games industry, academia, government, and tech to explore how AI is reshaping and future of esports. The panelists will also discuss future opportunities and career pathways in the age of AI.

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Sega establishes wholly owned Shanghai subsidiary to expand its presence in China

On August 3, Sega announced that it has established a new local subsidiary, SEGA (Shanghai) Entertainment Technology Co., Ltd., in Shanghai, China, on June 12, 2026, to strengthen its business presence in the country through the promotion and marketing of its intellectual property (IP) and content. Sega stated China has become an increasingly important entertainment market with continued growth opportunities across games, content, licensing, and merchandising businesses. Through the Shanghai subsidiary, the company aims to deepen its understanding of the local market, strengthen partnerships, and build operational capabilities to support future growth in China.

Why this matters: The announcement comes just ten days after Sega opened a new flagship store in Beijing. Sega’s establishment of a wholly owned Shanghai subsidiary highlights the growing strategic importance of mainland China not only as a large video game market but also as a key market for Japanese IP licensing and merchandising. The move may enable Sega to localize partnerships and commercial initiatives more effectively, reflecting a broader trend of global game companies investing in on-the-ground operations to capture growth opportunities in China.

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Nazara Technologies CEO Nitish Mittersain Steps Down After 26 Years

Nazara Technologies founder Nitish Mittersain will step down as CEO on September 1, 2026, ending more than 26 years in the role across two separate tenures. Mittersain will remain Managing Director. Subject to board approval, Raymond Albaladejo Stauffer will become Nazara’s new CEO. Stauffer previously founded Spanish mobile game publisher Bluetile, which ranked among Spain’s leading mobile publishers by downloads in 2025. The leadership transition comes as Nazara navigates a mixed financial environment. In the first quarter of FY27, the company reported a 14% YoY decline in operating revenue and recorded a quarterly loss.

Why this matters: With Mittersain remaining on the board, the move does not signal a drastic change in direction, but a realignment given Nazara’s moves and ambitions over the past year. In Q1, gaming remained Nazara’s largest business, accounting for 60.4% of operating revenue. Gaming revenue increased 14.1% YoY to Rs 275 crore from Rs 241 crore a year earlier. In contrast, esports revenue declined 81.8% YoY to Rs 28 crore, reflecting Nazara’s reduced ownership in NODWIN Gaming, which has transitioned from a subsidiary to an associate company.

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MCST reveals plans to expand funding and policy support for game industry

On July 28, South Korea’s Ministry of Culture, Sports and Tourism (MCST) outlined plans to expand support for the domestic game industry, including a new funding program that would provide approximately KRW 3 billion ($2.1 million) per project for games with development budgets between KRW 10 billion ($7 million) and KRW 50 billion ($35 million), subject to budget approval. The ministry revealed plans to increase support for indie developers, expand export assistance and overseas exhibition programs, broaden AI adoption initiatives, and increase game industry internship opportunities for young workers.

Why this matters: Korea’s proposed game industry support package signals a greater policy focus on strengthening domestic content creation and improving the competitiveness of mid-sized developers. Additional measures under review include expanding policy financing, introducing production cost tax credits, and strengthening enforcement against illegal private servers through tougher penalties and punitive damages.

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505 Games and Digital Bros announce sequel for Wuchang: Fallen Feathers

A sequel to Wuchang: Fallen Feathers has been officially announced following Digital Bros’ acquisition of the franchise. Earlier this year, the Italian publisher, the parent company of 505 Games, acquired the Wuchang IP from Chinese developer Leenzee for approximately 4 million euro. The sequel will be published by 505 Games and developed by Indolphinity, the new studio founded by Wuchang director and producer Xia Siyuan. The original Wuchang: Fallen Feathers launched in 2025 to generally positive critical reception, achieving a Metacritic score of 74.

Why this matters: While the original game reached 5 million players, Leenzee underwent significant layoffs a few months after launch. This was primarily due to its weak commercial performance outside of Xbox Game Pass, as well as criticism from Chinese players over story elements that blurred historical themes, prompting post launch revisions. While Leenzee no longer controls the franchise it created, the return of the original game’s director through a new studio provides continuity for the series.

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Tencent revives QQ Pet with AI enhancements

Tencent has officially relaunched the classic QQ Pet franchise within the mobile QQ app, marking the return of one of China’s most recognizable virtual pet experiences. QQ Pet first launched for PC in 2005 and surpassed one million concurrent users by 2006. The new version modernizes the original experience with fully animated 3D pets to adopt, replacing the classic 2D penguin characters while retaining familiar gameplay. Players can feed, bathe, educate, send pets to work or on adventures, and gradually develop their companions. Social features remain central, allowing users to visit friends’ pet homes, help care for pets, compete in battles, and collaborate on in game work.

Why this matters: The most significant addition is integration with Tencent’s Hunyuan Hy3 large language model. Rather than transforming QQ Pet into a conversational AI companion, the model is used to enhance existing gameplay through personalized pet diaries, random events, contextual summaries, and more varied character interactions. Core progression continues to revolve around traditional virtual pet mechanics, with AI primarily enriching expression and reducing repetitive scripted interactions. QQ Pet’s return, in addition to being a nostalgia play, reflects a broader trend of Chinese gaming and technology companies experimenting in the companion AI space. The release comes shortly after miHoYo released its own AI project called BSide: Olivia Lin.

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Chinese GPU firm MetaX files for Hong Kong IPO

Chinese GPU firm MetaX has confidentially filed for an initial public offering (IPO) in Hong Kong, joining a growing wave of domestic chip companies seeking public funding. The planned listing comes as Chinese semiconductor firms accelerate investment to develop alternatives to Nvidia’s GPUs amid continued demand for AI computing infrastructure. Founded in 2020, MetaX has become one of China’s most closely watched GPU startups, supported by a founding team that includes former AMD executives. MetaX previously pursued a listing on Shanghai’s STAR Market in late 2025 and is now seeking to raise capital through Hong Kong.

Why this matters: The filing follows several successful IPOs by Chinese AI and GPU chip firms including Biren Technology and Iluvatar CoreX. Meanwhile, Kunlunxin, Baidu’s AI chip subsidiary, has also confidentially filed for a Hong Kong listing and was previously reported to be seeking a valuation of at least RMB 100 billion ($13.9 billion). As Chinese GPU developers mature and capital markets continue supporting domestic chipmakers, the country’s semiconductor ecosystem is expected to become increasingly competitive across both AI and gaming.

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Events

GameForge 2026

August 10, 2026
Mumbai, India

Speaker: Narinder Kapur

Contact us to set up a meeting →

Video game markets in Southeast Asia are entering a new chapter of growth, driven by an expanding player base, increasing digital connectivity, and evolving consumer behavior. For more than a decade, Niko Partners tracks six key markets in the region (the ‘SEA-6’): Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Below we list some factors those interested in the region should monitor:

The region will surpass $7 billion in domestic revenue by 2030

In 2025, the Southeast Asian games market generated over $5.6 billion in revenue, marking 4.7% year-over-year growth. We project the region cross $5.9 billion in 2026 and grow to $7.0 billion by 2030, at a 5-year CAGR of 4.8%. We also expect player numbers to surpass 300 million this year, underscoring its position as one of the world’s largest, and most important, gaming audience.

Indonesia remains the largest market by player count, with more than 126 million gamers, and is also set to lead the next wave of revenue growth alongside Thailand and the Philippines. Thailand is on track to exceed $2 billion in player spending this year, and Indonesia is forecast to reach $1.5 billion in player spending by 2030.

Diverse Growth Drivers

Video game markets in Southeast Asia present unique opportunities for publishers, developers, and investors thanks to diverse growth drivers. In high-population markets such as Indonesia, the Philippines, and Vietnam, for example, increasing smartphone ownership and internet penetration is causing a rise in the number of new players.

Meanwhile, in more mature markets such as Malaysia, Singapore, and Thailand, growth is increasingly fueled by localized content, live events, community engagement, and a thriving esports scene. At the same time, governments across Southeast Asia are taking a more active role in shaping the future of local ecosystems through evolving regulations and policy frameworks. For companies looking to expand in the region, understanding how market dynamics intersect with the regulatory environment will be critical to achieving sustainable growth.

What Southeast Asian Players Are Telling Us

We combine our proprietary data, research methodologies, and deep networks across Southeast Asia to build insights that help companies decipher player behaviors, trends, and industry-wide developments.

• For example, this year’s SEA-6 reports reveal that 67.5% of players support mandatory age verification for games rated 18+, highlighting increasing awareness around player safety and responsible gaming. This finding also exists in parallel with greater efforts by some governments to widen regulatory coverage of domestic video game ecosystems, albeit with mixed results. There is demand for greater player safety, but the reaction to systems such as Indonesia’s IGRS shows the response will have to be collaborative and involve inputs from several stakeholders.

• A second finding shows that 61.4% of players exclusively play the official version of a video game, demonstrating strong engagement with legitimate gaming channels. Media piracy, including for video games, has been a cause of concern in the region, and while this data point does not mean video game piracy is facing a long-term structural decline, we believe it presents companies with opportunities to promote and find ways to engage players through legitimate channels.

• Third, nearly one-third of players prefer purchasing in-game content through out-of-app payment methods, with Thai gamers showing the strongest preference (over 35.0% of respondents). We believe this shows positive reception to efforts by publishers to increase their share of direct-to-consumer revenue, even as established storefronts, particularly on Mobile, continue to dominate revenue.

These insights reflect a market that is becoming increasingly sophisticated, where understanding player expectations, spending behaviors, and platform preferences is essential for long-term success. Fill out this form to download select key takeaways from the report.

At Niko Partners, we help businesses turn market intelligence into action. Through our syndicated research, subscription-based insights, and customized consulting services, we provide the data and expertise needed to navigate the rapidly evolving gaming markets across Asia and MENA. Whether you are evaluating expansion opportunities, analyzing player behavior, or assessing regulatory developments, our research delivers the clarity required to make confident business decisions. Contact us to learn more about how Niko Partners can help you unlock growth in one of the world’s most dynamic gaming markets.

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 193 domestic games and 4 import games on July 23, 2026. This is the sixth batch of games approved in 2026 and takes total approvals to 1,110 domestic games and 37 import games. The domestic batch included 175 mobile games and 18 cross platform games, while the import games list included 3 mobile games and 1 cross platform games. New games from NetEase, Shengqu, Bilibili, 37 Interactive, and Shengtian among others were approved. A total of 8 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN.

Notable titles approved include a new Fantasy Westward Journey mobile game from NetEase, Aion Classic from Shengqu and NCsoft, and Phantom Blade Zero from S-Game. We expect over 2,000 domestic and import games to be approved this year.

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Capcom says remakes help fund new games and IP

Capcom says its strategy of remaking classic Resident Evil titles is providing both financial and creative benefits, helping fund new game development while allowing development teams to refine their technical expertise. Over the past decade, Capcom has released three major Resident Evil remakes, most recently Resident Evil 4 in 2023. The next remake, Resident Evil Code: Veronica, is scheduled for release in 2027. The sustained success of the remake strategy has coincided with strong performance from new releases.

Why this matters: Thanks to this strategy, Resident Evil Requiem has become the fastest selling new entry in the franchise, while Capcom’s new IP Pragmata has sold 2.51 million units worldwide within three months of launch. Following the company’s latest financial results, Capcom corporate officer Yoshikazu Shimauchi also indicated that the likelihood of a Pragmata sequel is high. Rather than treating remakes as standalone products, the company is using them to strengthen development capabilities, sustain player engagement with its flagship franchises, and diversify future releases.

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Vietnam proposes reducing daily gaming time limit for children under 16 to one hour

Vietnam has proposed amendments to Decree 147/2024 that would reduce the daily gaming limit for children under 16 from 180 minutes to 60 minutes, while requiring operators to verify user ages and register under-16 accounts through a parent or legal guardian. The draft also proposes stricter health warning requirements, more standardized warning displays, age rating measures, and incentives for locally developed educational and culturally themed games. Industry stakeholders, including VNGGames, have provided feedback during the public consultation process, and the draft remains subject to revision before adoption. Pilot licensing programs and tax incentives for qualifying Vietnamese games are also being considered as part of the proposal.

Why it matters: The draft combines stricter youth protections with proposed support measures for domestic game development, suggesting Vietnam may be seeking a more balanced regulatory approach to the sector. The proposal follows in the footsteps of broader regional proposals concerning youth gamers in regard to addiction, safety, and content. If adopted, publishers and developers will need to manage additional compliance requirements while evaluating opportunities tied to locally developed educational and culturally themed content.

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Saudi PIF’s $55 billion acquisition of EA Games approved by EU antitrust commission

Electronic Arts $55 billion deal to be acquired by a consortium led by Saudi’s Public Investment Fund (PIF) has passed another hurdle, as the EU antitrust commission has approved the merger, finding that it would not raise any competition concerns. The EU will also be reviewing the deal under its Foreign Subsidies Regulation (FSR), but the deal is expected to gain approval through that lens as well with the ​Commission’s decision due by July 30. With the Jared Kushner-led Affinity Partners being a part of the consortium, it is unlikely that EA’s buyout will have any more meaningful hurdles on its path to completion.

Why this matters: The approvals for the deal are certainly a lot smoother than when Microsoft acquired Activision Blizzard, which led to an in-depth investigation before it could proceed. However, we do note that there has been pushback to the deal from game developers and US lawmakers who have called on the FTC to scrutinize the takeover.

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Tencent brings Esports World Cup 2026 festival to Wuhan

Tencent Esports hosted the Esports World Cup (EWC) 2026 China Super Esports Carnival in Wuhan on July 18 and 19, attracting more than 100,000 visitors across the two-day event with over 24,000 visits to interactive gaming experiences. Organized as part of Tencent’s partnership with the EWC, the festival was designed to bring the atmosphere of the international tournament to Chinese fans through community focused offline experiences. The event featured experiences across interactive zones, with dedicated exhibition areas for seven popular games, including Peacekeeper Elite and Teamfight Tactics.

Why this matters: Tencent described the initiative as part of its strategy to connect China’s player community with the Esports World Cup by complementing tournament broadcasts with localized fan experiences. Following previous events in Changsha and Wuhan, additional EWC 2026 viewing parties are planned for Nanjing. Rather than relying solely on online viewership, publishers and tournament operators are creating localized experiences that strengthen player communities, expand sponsorship opportunities, and extend the commercial impact of global esports events into regional markets.

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Sega opens another store in China

Sega has opened a new flagship store in Beijing, marking its second permanent retail location in mainland China following the launch of its Shanghai store. The company also plans to open a temporary pop up store in Shenzhen later this month, continuing its expansion of direct to consumer retail operations in the country. The Beijing store features merchandise from several of Sega’s major franchises, including Sonic the Hedgehog, Like a Dragon, Persona, Metaphor: ReFantazio, and Hatsune Miku: Colorful Stage!, alongside Beijing exclusive products.

Why this matters: Sega is positioning the store as both a retail destination and an interactive brand experience with dedicated game demo areas where visitors can play various games. Sega’s expansion reflects a broader trend among Japanese publishers investing more heavily in physical brand experiences in China. Earlier in 2026, Square Enix opened its first official flagship experience and merchandise store in Shanghai, highlighting growing confidence in the country’s demand for premium game related merchandise and entertainment experiences.

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Garena reveals Free Fire Daybreak anime

Garena has partnered with Japanese firm Kadokawa to create an anime adaptation of its mobile game, Garena Free Fire, that has officially been titled Free Fire Daybreak. The series will be co-produced through a joint investment by the two companies and is set to release globally in Spring 2027. Set in the futuristic metropolis of New Dawn, Free Fire Daybreak follows protagonist Kelly, who awakens with no memory of her past before becoming entangled in Horizon Corporation’s mysterious Project Bloom.

Why this matters: Free Fire has become one of the most popular video games in the world with Garena reporting 666 million quarterly active players across its games and 72 million quarterly paying users. The anime follows the transmedia strategy that has been increasingly adopted by game franchises owners, with the aim to bring in new fans and increase engagement across the IP. There have also been a number of transmedia crossover projects within games like Free Fire including music concerts and film premieres.

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Tencent to shut down Final Fantasy XIV Mobile in China

Tencent’s LightSpeed Studios will shut down the Chinese version of Final Fantasy XIV Mobile at the end of September 2026 and has cancelled the game’s planned global launch. The title launched in mainland China on June 19, 2025, resulting in a total operating lifespan of 468 days. The project originated in 2019 through a partnership between Tencent and Square Enix, with Final Fantasy XIV producer Naoki Yoshida overseeing the adaptation. While the game peaked at #35 on China’s iOS game revenue chart during its launch period, it entered a steady decline in the following month.

Why this matters: While there are multiple reasons why the game failed, the main issue as we see it was the mismatch between traditional PC MMORPG design and mobile players’ preference for shorter play sessions, high content maintenance costs, and dissatisfaction among core MMORPG players with mobile monetization and update cadence. In essence, the game tried to recreate the PC gaming experience and monetization while failing to transition those players to mobile or reach the broader MMORPG player base on mobile.

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Huya starts experimenting with digital human AI models

Huya has launched VAM 1.0, its real time multimodal digital human AI platform, expanding the use of generative AI across livestreaming, audience engagement, and interactive entertainment. The technology has already been deployed across several core features on Huya’s platform. These include AI generated singing and dancing performances with seamless outfit changes, AI powered interactive experiences such as Werewolf / Mafia style games, digital assistants that help streamers respond to viewer comments and manage audience interactions, and 24 hour automated promotion of in game items and other commercial content.

Why this matters: Huya believes its investment in digital humans can increasingly support continuous broadcasts, live event commentary, and companion style entertainment while reducing the operational costs associated with creator led content production. Huya has been losing market share to short video platforms over the past few years, with revenue dropping notably. The bet on generative AI is a risky one, but could significantly increase content output while lowering production costs, creating new monetization opportunities for livestreaming platforms, game publishers, and creators.

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Events

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

The Computer Entertainment Supplier’s Association (CESA) has announced a record breaking Tokyo Game Show (TGS) 2026, with 759 exhibitors, 3,946 booths, and participation from 51 countries and regions. To mark the event’s 30th anniversary, TGS has expanded from four to five days, including three public days, with attendance expected to exceed 300,000 visitors. Despite the event’s overall growth, participation from Chinese game companies has fallen sharply. The number of exhibitors from mainland China declined from 112 in 2025 to 72 this year, while exhibitors from Hong Kong fell from 18 to just two.

Why this matters: Several major Chinese publishers that maintained a strong presence in recent years, including Tencent’s Level Infinite, NetEase, Perfect World, Seasun, Papergames, Hypergryph, Bilibili, Manjuu, Century Huatong, and Hero Games, are absent from the consumer exhibition area. miHoYo will also miss the event for a second consecutive year. While there is no official explanation, broader geopolitical tensions and reduced China-Japan exchanges may have made high profile participation less attractive for some large publishers.

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Roblox expands Hindi language support across platform and creator tools in India

Roblox introduced Hindi language support across its platform, Creator Hub, and Roblox Studio in July, allowing users to switch the interface to Hindi and enabling creators to use automatic translation for supported content, including in-game strings, game names, products, and descriptions. The update also includes Hindi SEO support to improve search discoverability and plans to add Hindi chat translation in the future as part of its localization efforts. With this rollout, Roblox now supports 17 languages and aims to expand access for Hindi-speaking players and creators in India.

Why this matters: Local language support is becoming an important competitive advantage as gaming platforms seek deeper engagement beyond English-speaking users. Improved accessibility and content discovery can help creators reach larger domestic audiences while encouraging more user-generated content. The rollout also signals that India’s linguistic diversity is increasingly shaping product strategy, making localization a practical investment for platforms seeking long-term user growth and creator retention.

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China recorded 50 games-industry related M&A deals in H1 2026

Approximately 50 video game related mergers, acquisitions, and investment transactions were recorded in mainland China during the first half of 2026, highlighting continued capital activity despite a more selective funding environment. Around half of the companies involved in transactions were founded within the past two years, including several independent game studios. However, investment activity has become increasingly concentrated around familiar founders and established development trends rather than new entrants.

Why this matters: More than half of the projects founded by high profile industry veterans are focused on strategy games, ACGN titles, or casual party games, suggesting investors continue to favor commercially proven categories over more experimental concepts. At the same time, nearly all angel investments during the period went to teams with backgrounds at major game companies, while first time founders and independent developers with no established industry track record attracted comparatively little capital.

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Indonesia seeks deeper collaboration with the United States to support video games and esports talent development

Indonesia’s Creative Economy Minister Teuku Riefky Harsya invited the U.S. Embassy in Jakarta to expand collaboration between Indonesian and American creative economy stakeholders, particularly in the video games industry, and proposed establishing American Corners within creative hubs across Indonesia. The minister stated that esports has become an important part of Indonesia’s creative economy, creating opportunities for athletes, casters, content creators, coaches, event organizers, and other professions within the video games and esports ecosystem. This is in line with the American Spaces Indonesia Esports Development (ASIED) program which trained young digital talent through workshops covering competition management, broadcasting, league operations, graphic design, content creation, and match commentary, reaching more than 1,750 participants and 50 esports communities across seven Indonesian cities over seven months.

Why this matters: Indonesia’s government is increasingly recognizing esports and gaming as drivers of creative economy growth and employment. Expanded collaboration between international institutions and local stakeholders could accelerate talent development and strengthen Indonesia’s position as one of Southeast Asia’s largest gaming and esports markets.

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Gameloft and Tencent soft launch mobile GTA-like game

Gangstar Mirage City has opened pre-registration. Developed by Gameloft and published globally by Tencent subsidiary Level Infinite, the title brings an open world urban action experience to iOS and Android, positioning itself as one of the few mobile games targeting the same sandbox gameplay audience as Grand Theft Auto. The game has been designed with emerging markets in mind with a soft launch planned across South Asia, Southeast Asia, Eastern Europe, MENA, and Latin America on August 20, 2026, and a current soft launch underway in the Philippines.

Why this matters: Accessibility has been a key design priority. At launch, the game will support nine languages, including English, Arabic, Indonesian, Thai, Russian, Tagalog, Turkish, Latin American Spanish, and Brazilian Portuguese. It also features low minimum hardware requirements and a lightweight initial download, allowing it to run across a broad range of smartphones without requiring flagship devices. The emphasis on localization, low hardware requirements, and broad regional rollout comes just ahead of Grand Theft Auto VI’s release on PS5 and Xbox Series X|S, positioning Gangstar Mirage City as a more accessible and affordable alternative for those in emerging markets who have been caught up in the GTA VI hype but don’t own a current gen console.

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China approves launch of Apple Intelligence

China’s Cyberspace Administration of China (CAC) has officially approved Apple Intelligence for deployment in the country, clearing the way for Apple to introduce its AI features on iPhones. To comply with local regulations, Apple Intelligence will leverage AI capabilities provided by Alibaba and Baidu, reflecting China’s requirement that foreign AI services partner with approved domestic providers.

Why this matters: Apple Intelligence and Samsung’s Galaxy AI were the only foreign AI platforms approved in the latest licensing round. The approval removes a competitive disadvantage Apple has faced in China, where domestic smartphone manufacturers have already been offering locally approved AI features. Notably, though, the lack of AI features on iPhones did not have a material impact on sales of the device, given most AI tools in China are used within super apps like WeChat, rather than at the OS level.

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Bilibili World 2026 attracts 400,000 attendees over 3 days

Bilibili World (BW) 2026 was held in Shanghai from July 10 to July 12, attracting more than 400,000 visitors, broadly in line with last year’s record attendance. The event featured 170 exhibitors from China and overseas, more than 60,000 cosplayers, and, for the first time, ticket sales outside mainland China. Visitors from more than 30 countries attended, with international attendees accounting for approximately 18% of total visitors. Since launching in 2017, BW has evolved from a niche fan gathering into one of the world’s largest ACGN conventions and an increasingly important platform for game announcements, marketing, and consumer engagement.

Why this matters: While games and anime made up some of the largest attractions and booths, BW is increasingly functioning as a platform for global entertainment. For example, Marvel Studios built a dedicated Avengers: Doomsday exhibition, and the general exhibition floor also included consumer electronics, automotive brands, collectibles, tabletop games, creator spaces, virtual entertainment, and cosplay photography, reflecting the commercialization and diversification of the broader ACGN ecosystem. The event is now just as large as ChinaJoy, if not larger. We even heard of games industry companies opting for BW over ChinaJoy 2026.

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Samsung highlights Gaming Hub user growth amid rising gaming hardware prices

Samsung revealed that its Gaming Hub available on Samsung smart TVs has continued to expand since launching in June 2022. The service now provides access to more than 4,000 games via partners, with its global monthly active and unique user base nearly doubling over the past two years. The company’s strongest growth has come from casual and party games. Between June 2025 and June 2026, the number of unique users playing these genres on Samsung smart TVs increased by more than 90% year over year in North America and by over 200% globally.

Why this matters: Samsung’s latest figures highlight the growing potential of cloud gaming on connected TVs as an alternative entry point into gaming. Rising prices for gaming PCs and consoles could encourage more consumers to access games through existing smart TVs, particularly in price sensitive markets. Right now, the majority of users are casual players who use smartphones as an input device, rather than a Bluetooth controller. This could be an opportunity for traditional gaming companies who can target new non-traditional players in addition to the rising casual segment on smart TVs.

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China’s games industry employment remained stable in 2025

New employment data compiled by Chinese industry tracker GameShark indicates that mainland China’s game industry has largely stabilized after two years of workforce reductions. Based on social security records collected from 9,020 game related entities, the industry employed approximately 233,000 people across 8,381 comparable companies in 2025, a net decline of just 229 employees compared with 2024. Comparable companies reduced headcount by approximately 4,000 employees in 2024 and around 11,000 in 2023, reflecting the industry’s post pandemic correction and broader slowdown in investment.

Why this matters: When art outsourcing and support studios are included, total industry employment actually increased by 266 employees year over year, indicating that demand for external development services remained resilient despite broader restructuring. The findings contrast with continued layoffs across many Western game companies, where publishers and developers have continued to reduce headcount through 2025 and 2026. In China, the pace of downsizing appears to have slowed considerably as investment activity gradually recovered and development pipelines normalized.

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Lenovo to release cloud gaming handheld

Lenovo has announced that its Legion C700 cloud gaming handheld will launch in August, expanding its gaming hardware portfolio with a device built around Tencent’s START cloud gaming platform. Promotional images show an Xbox style asymmetric controller layout, rear programmable buttons, and active cooling vents, indicating a dedicated gaming form factor despite relying primarily on cloud streaming rather than local processing.

Why this matters: With a cloud first approach Lenovo can offer the device at a lower price point, an important consideration as rising memory and component costs have pushed up prices across gaming handhelds. While cloud gaming is fairly mature in China, and Tencent has built up a library of AAA games via its SMART platform, it’s unclear whether a dedicated cloud gaming handheld is the right fit for the market. Most cloud gaming already takes place on mobile and PC, and a dedicated device has yet to be verified in the market.

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

Indian developer Tara Gaming is positioning itself to create a globally successful AAA game with The Age of Bhaarat, a PC and console action title inspired by Indian mythology and culture. The studio aims to achieve for India what Black Myth: Wukong accomplished for China by demonstrating that locally developed, culturally rooted games can succeed with international audiences. Tara Gaming has assembled a team of more than 160 developers to support the project, led by former Ubisoft executive Nouredine Abboud, previously head of the Ghost Recon franchise, alongside filmmaker Amitabh Bachchan and bestselling author Amish Tripathi.

Why this matters: While our data shows India surpassed 500 million gamers in 2025 and player spending exceeded $1 billion, PC and console development remains relatively limited compared with mobile. This will be a challenging task for the studio who will primarily focus on overseas audiences. The game also aligns with the Indian government’s broader ambition to establish the country as a global game development hub while promoting Indian culture through interactive entertainment. Success would not only validate India’s AAA development ambitions but could also encourage greater investment into PC and console game production.

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Esports World Cup 2026 in Paris, France opening ceremony features contemporary French musical artists

The Esports World Cup 2026 has begun in Paris, France with a bombastic Opening Ceremony at La Seine Musicale. The event will bring together more than 2,000 players and 200 esports clubs from over 100 countries. The prize pool will be $75 million. The seven-week competition features 25 tournaments across 24 of the world’s most popular games. The event was originally scheduled to be held in Riyadh, like last year, but had to move to Paris due to the 2026 Iran War. At a press conference on July 8, Esports World Cup Foundation CEO Ralf Reichert revealed that 100,000 tickets have already been sold.

Why this matters: Given the recent flare up in tensions between the US and Iran, it’s clear that moving to Paris was the right decision, a move that likely would have happened at some point given the organizers desire to hold the cup across multiple cities in the future. Fans in 160 countries will be able to follow the Esports World Cup live across 100 broadcast and OTT partners, streaming platforms and digital services, with more than 7,000 hours of live programming produced throughout the competition. Coverage will be available in more than 40 languages.

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Livestreaming Tracker June 2026 Highlights: Tencent’s Shooter Portfolio Leads China’s Livestreaming Rankings

Shooter titles dominated China’s livestreaming landscape in June 2026, standing out as some of the month’s most-watched content. The hike was driven by global esports events, notably Counter-Strike 2 at IEM Cologne and Valorant at Masters London. Read the highlights here.

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Chinese firms remove AI companion features ahead of new regulation

ByteDance, Tencent, and Alibaba are simultaneously removing AI companion features from their flagship chatbot platforms as China prepares to implement new regulations governing humanlike AI services. The decision has prompted backlash from users, many of whom have filed complaints and requested mechanisms to export conversation histories, memories, and character data after investing thousands of hours interacting with AI companions. The new regulations will strengthen oversight of AI systems capable of simulating personalities and emotional relationships.

Why this matters: The framework prohibits AI services from generating content that fosters unhealthy emotional dependence, particularly among minors, or weakens users’ real world relationships. As a result, major technology companies appear to be prioritizing productivity and enterprise focused AI applications over consumer companion experiences. AI companions have become an area of experimentation for several Chinese developers, with companies including miHoYo recently unveiling companion style applications that combine virtual characters with conversational AI. Future products in this category will need to balance immersive character interactions with stricter regulatory requirements around emotional engagement, data privacy, and user protection.

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Tencent deploys AI-powered tools to enhance youth regulation compliance

Tencent has launched its 2026 summer youth protection initiative, reaffirming its long-standing playtime restrictions for minors while introducing new AI-powered enforcement. The upgraded system combines facial recognition with voiceprint detection and AI-based age recognition to improve identity verification and reduce attempts to bypass restrictions using another person’s account. Tencent said the new technologies are designed to enhance the accuracy and efficiency of its youth protection framework during one of the busiest gaming periods of the year.

Why this matters: While China’s restrictions on minor playtime are well established, the more notable development is the deployment of increasingly sophisticated AI-driven compliance infrastructure. Rather than relying solely on manual verification or facial recognition, Tencent is integrating multiple AI models to authenticate users across different modalities, creating one of the largest real world implementations of AI-enabled identity verification in the games industry. Children usually use their parents phone or an adult account to bypass restrictions, and this new method will be implemented to identify those users specifically.

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Yoozoo outlines how it using AI in game development and marketing

Chinese game publisher Yoozoo Interactive has revealed that AI agents are now used across 75% of its workforce, with the company leveraging Tencent Cloud’s WorkBuddy platform to automate workflows spanning market intelligence, advertising production, and live service operations. The company has also integrated data platform capabilities into customizable AI agents, allowing teams to perform self service analytics without engineering support.

Why this matters: The announcement reflects a broader shift within China’s games industry toward embedding AI throughout development and publishing workflows rather than limiting its use to coding or content generation. Companies including Tencent, ByteDance, NetEase, and others have recently outlined similar initiatives focused on accelerating production, improving marketing efficiency, and supporting live operations through AI powered tools.

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Papergames withdraws Love and Deepspace booth from Bilibili World

Papergames has canceled Love and Deepspace‘s planned appearance at Bilibili World 2026 as the fallout from the recently canceled love interest Valko continues to expand. In a statement posted on the game’s Xiaohongshu account, the studio apologized to players, acknowledged the recent criticism, and said it would conduct internal staff training while continuing to address player concerns and better reflect Chinese culture and history in future content. What began as community backlash over a new character announcement has since evolved into a broader cultural controversy. An explanation of the controversy can be found in the article below.

Why this matters: Papergames has permanently removed Valko from development, withdrawn from a major industry event, and faced growing public scrutiny following coverage by state media and government agencies. At the same time, the decision has divided the game’s global community. The incident demonstrates how controversies in China’s live service games can rapidly extend beyond player communities into mainstream public discourse. It also illustrates the increasingly complex challenge facing globally operated titles, where developers must balance domestic cultural expectations and regulatory sensitivities against the preferences of international audiences, with decisions in one market potentially generating significant repercussions in another.

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Scopely rebrands Niantic games team to Scopely Explore, updating Pokemon GO startup branding

The development team behind Pokemon GO has been officially rebranded as “Scopely Explore,” with the new name now appearing on the game’s startup screen in place of the legacy Niantic logo. This follows Scopely’s $3.5 billion acquisition of Niantic’s games business in March 2025, which included Pokemon GO, Monster Hunter Now, Pikmin Bloom, Campfire, and Wayfarer, with development teams transitioning to Scopely to ensure service continuity. The rebrand was announced in a July 6, 2026 press release marking roughly one year since the transition, with the team reaffirming its commitment to delivering high-quality player experiences. The branding update is rolling out gradually, with some devices still displaying the legacy Niantic logo, while Monster Hunter Now and Pikmin Bloom had not yet received updated startup branding as of July 13, 2026. Scopely Explore operates as an internal team within Scopely rather than a standalone entity.

Why this matters: Scopely’s rebranding formalizes the post-acquisition integration of Niantic’s live service portfolio, signaling continued investment in geolocation-based mobile games. The move highlights how major publishers are consolidating proven live ops titles while maintaining original development teams to preserve long-term engagement.

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Nintendo to shut down Mario Kart Tour, leaving mobile strategy in limbo

Nintendo has announced that Mario Kart Tour will cease operations on iOS and Android on September 29, 2026, ending the 7-year lifecycle of its free to play mobile racing game. The shutdown follows the gradual wind down of active development. Nintendo stopped producing new content for Mario Kart Tour in 2023 after the Anniversary Tour, with no additional courses, drivers, karts, or gliders released over the past three years. Unlike Animal Crossing: Pocket Camp, which was converted into a premium offline experience following its 2024 closure, Mario Kart Tour will become completely inaccessible once online services end.

Why this matters: While the title is estimated to have generated nearly $400 million in lifetime player spending, making it one of Nintendo’s most commercially successful mobile games, sustainability was a major concern after the first couple of years and spending fell short of its major console IPs. Nintendo has shut down most of the games it has launched on mobile, with Fire Emblem Heroes being the only title it directly publishes in 2026 (Excl. Pokémon titles). Nintendo is now prioritizing Switch 2 sales and cross media expansion, with mobile taking a backseat.

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Indonesia, Thailand youth football national team revealed in Captain Tsubasa 2: World Fighters ahead of August 2026 launch

Bandai Namco and Tamsoft have officially revealed the Indonesia and Thailand youth national team as part of Captain Tsubasa 2: World Fighters, a soccer action game featuring 22 national teams and over 100 playable characters in an international tournament. The announcement confirms earlier reports and highlights Indonesian goalkeeper Eko Jawato as the Indonesian team’s standout character, with trailer footage showing him dramatically blocking a powerful shot from Tsubasa. Eko is portrayed as exceptionally strong, with abilities suggested to rival established characters in the series, based on in-game presentation.

Why this matters: The inclusion of Indonesia and Thailand’s youth national team highlights Bandai Namco’s increasing focus on Southeast Asian audiences, leveraging localized representation to grow engagement in anime-based sports titles. This may signal further regional customization strategies in future global sports and anime game releases. The game is scheduled for release on August 28 for PlayStation 5, Xbox Series X|S, Nintendo Switch, and PC.

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GRAC warns users to protect against probability disclosure violations

Korea’s Game Rating and Administration Committee (GRAC) announced that administrative procedures are underway against overseas game Hell Swordsman: Inheritors for failing to comply with mandatory probability item disclosure requirements. The regulator stated it confirmed the violation through monitoring activities and is coordinating follow up measures with the Ministry of Culture, Sports and Tourism (MCST) in accordance with relevant regulations.

Why this matters: The game has been subject to public notification through the official government channels, and distribution in Korea may be restricted if corrective actions are not implemented after the notification period expires. Separately, the committee stated it identified indications that the game may have used characters from Demon Slayer and other intellectual property without authorization and has notified the relevant copyright holders.

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Xsolla partners with Malaysia’s Management and Science University to expand game development and monetization training

Xsolla has signed a Memorandum of Understanding with Management and Science University (MSU), announced on July 14, 2026, to strengthen collaboration between academia and the video game industry. The partnership focuses on talent development and knowledge exchange across game development, digital commerce, and monetization through industry talks, guest lectures, best-practice sharing sessions, and collaborative educational initiatives. Students will gain access to Xsolla’s end-to-end game commerce ecosystem, enabling them to integrate professional publishing, monetization, payment, and distribution tools into their projects, helping bridge the gap between academic learning and commercial game development while preparing students for global market opportunities. Both organizations will also explore further collaborations, including Xsolla presenting industry awards at MSU convocation ceremonies and other innovation initiatives to support the growth of Malaysia’s game development ecosystem.

Why this matters: Partnerships between global monetization platforms and universities reflect a broader industry shift toward equipping developers with commercialization skills, positioning Southeast Asia as a more competitive hub for globally scalable game development.

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Indonesian Free Fire creators attract audiences with hidden feature and bug discovery content

Free Fire continues to generate significant community-created content on social media, particularly around hidden features and gameplay bugs. Indonesian content creators frequently share discoveries such as secret locations, little-known animations, and amusing glitches, which often attract millions of views on YouTube, TikTok, and Facebook. One of the creators is Tauseef Ahmad, also known as Mr. Tauseef, from Sukabumi, who regularly explores hidden features and unusual gameplay mechanics. According to Tauseef, the appeal of this content comes from the exploration process and the opportunity to share new discoveries with the community. Such content is generally intended as entertainment rather than encouraging players to exploit bugs, while recommending that players report impactful bugs to Garena through official channels so they can be fixed in future updates.

Why this matters: Ongoing updates to Free Fire is expected to create opportunities for new discoveries and community engagement, with community-generated content remains an important driver of engagement for long-running live service games in Indonesian and Southeast Asia in general. Discoverability on platforms such as YouTube, TikTok, and Facebook can help sustain player interest between major content updates.

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

Shooter titles dominated China’s livestreaming landscape in June 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that shooter remained one of the most-watched genres in China’s livestreaming market in June 2026, driven by global esports events.

Tencent’s shooter portfolio maintained a dominant presence in China’s livestreaming market, with five titles ranking among the top 10 by Niko Index: Delta Force (#1), Valorant (#3), Peacekeeper Elite (#4), CrossFire (#5), and Valorant Mobile (#9). This underscores Tencent’s strength across both PC and mobile shooter segments.

• We observe that major esports tournaments generated significant audience spikes for shooter titles in June, as seen with Counter Strike 2 during the IEM Cologne Major and Valorant during Masters London.

• Valve’s Counter Strike 2, a F2P PC shooter game, garnered 137.5 million viewers (+50% MoM) and ranked #4, unchanged from the prior month.

• Riot Game’s Valorant, a F2P PC shooter game, garnered 128.9 million viewers (+62% MoM) and ranked #5, a rise from #7 in the prior month.

• Chinese teams performed substantially better at Valorant Masters London 2026 than at the IEM Cologne Major. EDward Gaming placed #3 and earned $125,000, while XLG Esports and Dragon Ranger Gaming also secured prize money. In comparison, TYLOO finished 17th at the IEM Cologne Major with $10,000.

The above is an extract from our China Games & Livestreaming Tracker June 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!

The Hurun Research Institute has ranked Chinese game developer miHoYo as the world’s 25th most valuable private company in its latest global rankings of private companies. Best known for Genshin Impact, miHoYo was valued at approximately $30 billion. The next highest ranked game company was Lilith Games, the studio behind Rise of Kingdoms and AFK Arena, which ranked 256th with an estimated valuation of $4.4 billion.

Why this matters: miHoYo’s valuation has increased rapidly in recent years. The company was valued at approximately $7.2 billion in 2023 before rising to around $23 billion in 2024 and reaching an estimated $30 billion in the latest ranking. The growth reflects the sustained global success of its live service portfolio, led by Genshin Impact alongside newer titles including Honkai: Star Rail and Zenless Zone Zero. However, it’s worth noting that only private companies founded after 2000 are included in the list, which does mean certain private companies like Valve are excluded.

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Hero Esports CEO makes the case for esports going mainstream

Hero Esports Co-founder and CEO Danny Tang used an appearance at the Cannes Lions International Festival of Creativity to make the case that esports has become a mainstream audience platform for brands, investors, and media companies.

The appearance coincided with the release of The Esports Generation: Who They Are, and Why They Spend, a whitepaper published by Niko Partners, Hero Esports, and ESL FACEIT Group. The research is based on a May 2026 survey of 8,000 Gen Z esports fans and estimates that the global Gen Z esports audience may be as high as 400 million people. Download the whitepaper here.

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Esports World Cup announces partnerships with Chinese digital platforms

The Esports World Cup 2026 has announced distribution partnerships with eight of China’s largest digital platforms ahead of this year’s tournament, significantly expanding access for Chinese audiences. The event, which will be held in Paris from July 6 to August 23, will be available across Douyin, Kuaishou, Bilibili, Huya, DouYu, Weibo, Hupu, and Tencent Video. Rather than offering identical coverage, each platform will leverage its core strengths. By combining livestreaming, short video, social media, community discussion, and video on demand, the Esports World Cup is maximizing its reach across different audience segments.

Why this matters: Douyin and Kuaishou will provide livestreams alongside short form content, including highlights, behind the scenes footage, and player interviews. Bilibili, Huya, and DouYu will focus on live match broadcasts, professional commentary, and supplementary esports programming for core gaming audiences. Weibo will serve as the tournament’s social media partner, delivering live news updates and driving fan engagement, while Hupu will provide community focused features such as match ratings and discussion forums. Tencent Video will host full match replays, allowing viewers to watch complete broadcasts on demand.

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NetEase to shut down its livestreaming service CC Live

NetEase will shut down its game livestreaming platform CC Live on August 31, 2026, marking the end of one of China’s earliest dedicated game streaming services. In a June 30 announcement, the company said the closure follows adjustments to its product development and operating strategy. Effective immediately, CC Live has suspended downloads, virtual currency top ups, new user registrations, and onboarding of new streamers and guilds.

Why this matters: Originally launched as NetEase CC Voice in 2009, the platform primarily served as a promotional channel for NetEase’s game portfolio through exclusive streaming rights and official content. However, CC Live never emerged as a leading player in China’s livestreaming market, remaining significantly smaller than established competitors while occupying a niche centered on NetEase titles.

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Nintendo Switch to be discontinued in Europe after new battery regulations

Nintendo has announced that new EU battery regulations coming into effect in February 2027 will lead to product changes for its Switch family of consoles. The Nintendo Switch 2 will introduce a new SKU later this year with a replaceable battery, while it will discontinue the original Nintendo Switch in early 2027. The Nintendo Switch has sold over 40 million units in Europe, although less than 1 million were sold in the past year as the console turns 10 years old.

Why this matters: While not explicitly noted, it’s clear that Nintendo is sunsetting production on the Nintendo Switch due to the new regulations, age of the console, and declining sales, not to mention the rising costs of supporting older hardware. The company has yet to confirm discontinuation for other markets, but we note that Nintendo is only forecasting 2 million unit sales for the console this year, and given it has already had to raise the price of the console due to increased memory costs, it’s unlikely the firm will continue producing it globally by 2028.

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NeoPulse to acquire controlling stake in Wemade

On July 30, Wemade announced that Chairman Park Kwan Ho signed a share purchase agreement to sell his entire stake in the company for approximately KRW 920.0 billion (around $657.1 million). The acquisition is led by Hong Kong based investment platform NeoPulse, which is wholly owned by Shengsong Investment and has business ties with Alibaba and major Chinese game companies. Upon completion of the transaction on October 30, NeoPulse will hold a 40.25% stake, becoming Wemade’s largest shareholder.

Why this matters: Wemade stated the transaction is based on a shared strategy to expand AI adoption in game development and accelerate growth in the Chinese market, while NeoPulse revealed plans to support global game development and broaden the commercial use of Wemade’s Mir intellectual property through partnerships with Chinese technology and gaming companies. Over the past year, WeMade successfully resolved its lengthy intellectual property dispute with Century Huatong, restoring its ability to monetize Legend of Mir licensing in China.

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TapTap showcases 52 games at annual press conference

TapTap celebrated its 10th anniversary during the 2026 TapTap Games Showcase on July 2, presenting updates across 52 games during a 90-minute livestream for the Chinese audience. The event featured a broad mix of genres, including open world, action adventure, shooter, roguelike, strategy, simulation, puzzle, music, and indie games, alongside new AI development tools. Following the launch of the TapTap PC client in 2025, this year’s event featured a larger presence of premium PC and console titles.

Why this matters: The showcase reflected TapTap’s continued evolution from a mobile game discovery platform into a broader cross-platform ecosystem. Since its launch in 2016, the platform has differentiated itself through policies such as zero revenue sharing, avoiding mandatory channel SDK integration, and providing game testing and preregistration tools that allow developers to reach players more directly. Beyond publishing, TapTap introduced its first AI game creation platform, TapTap Maker, positioning the company as both a distribution platform and a game creation ecosystem.

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Savvy subsidiary, Scopely, make undisclosed investment in Studio AuKnow

Savvy Games Group subsidiary, Scopely, have announced that they will be making an undisclosed investment in Tokyo-based game studio Studio AuKnow, which was founded last year by former UmaMusume: Pretty Derby director, Takuma Akitsu. The new studio is focused on creating original IPs that connect with players and become massive hits.

Why this matters: This marks a shift from Scopely’s usual modus operandi, who prefer to invest heavily in well known international IPs (As seen with Monopoly Go, and the acquisitions of Pokemon Go developers, Niantic, and Kitka Games, the makers of Stumble Guys). This suggests that Scopely have faith that the studio head Takuma Akitsu can utilize his experience working on Umamusume: Pretty Derby to create a new hit.

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China expands local game approval pilot to Hunan

China’s National Press and Publication Administration (NPPA) has approved Hunan Province as the latest pilot region for the localized administration of domestic online game approvals. Under the new framework, Chinese games developed and published by companies based in Hunan will undergo initial content review by the provincial publishing authority, using the same national review standards before progressing through the broader licensing process.

Why this matters: For game companies located in Hunan, the pilot is expected to streamline the submission process, shorten review timelines, and provide greater predictability around game launches. While final approvals will continue to follow national standards, shifting the initial review process to provincial authorities is intended to improve administrative efficiency. Hunan becomes the eighth province or municipality to participate in the localized review system.

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

Papergames has canceled development of Valko, a planned new romance option for Love and Deepspace, just eight days after the character’s announcement. Valko, who was scheduled to debut in Version 6.0 on July 9, would have been the sixth love interest in the game and the first new addition since Caleb was introduced in January 2025. The decision follows significant backlash from the game’s community. While there has been backlash to the character itself, many players argued that existing love interests had not received sufficient story and relationship updates, expressing concern that introducing another romance option would further dilute future content.

Why this matters: The announcement reportedly led to a wave of negative comments, a decline in followers across the game’s social media channels, and, in isolated incidents, offline protests targeting the developer. The controversy highlights the unique dynamics of the otome and character driven gacha market, where long term player engagement is built around sustained emotional investment. There has also been a disconnect between Chinese and global player communities with the former leading the backlash while the latter has been more open to the character.

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Coda partners with Indonesia’s Ministry of Creative Economy to scale games ecosystem and global developer reach

On June 25, Indonesia’s Ministry of Creative Economy signed an MoU with digital platform Coda, formalizing an ongoing partnership to strengthen the national gaming ecosystem and expand global market access for local developers. Niko’s Director for Southeast Asia and East Asia Research Darang Candra was also invited as a panelist in the MoU signing’s discussion session. The collaboration focuses on human resource development, as well as distribution, promotion, and digital payment systems to accelerate industry growth and improve international competitiveness.

Why this matters: Indonesia’s partnership with Coda highlights how governments are leveraging payment and distribution infrastructure partners to close the monetization gap for local developers, a key barrier to global competitiveness. This signals increasing ecosystem-level interventions in Southeast Asia to retain more value from fast-growing domestic gaming markets.

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The Esports Generation: Who They Are, and Why They Spend - Free Whitepaper from Niko Partners x Hero Esports x ESL FACEIT Group

400 million Gen Z consumers regularly engage with esports and gaming content worldwide. What makes this audience so valuable to brands? Our research found that 85% of Gen Z esports fans notice brand partnerships in esports. Based on a survey of 8,000 Gen Z esports fans across multiple markets, this whitepaper offers one of the most comprehensive study at this fast-growing audience in recent years. Released in collaboration with Hero Esports and ESL FACEIT Group, this free whitepaper explores how Gen Z engages with esports, brands, and the experiences that drive loyalty.

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Meccha Chameleon surpasses 10 million sales within three weeks of launch

Meccha Chameleon, a Japanese indie hide and seek PC game where players paint their character to blend into the environment, has reached 10 million sales on Steam in under three weeks following its launch on June 10, 2026. The title is described as one of the fastest-selling Steam releases in the past few years, having already surpassed 7 million copies by June 22 before adding another 3 million in just four days. The game’s rapid growth in popularity has been supported by frequent updates, with two major patches already released, and a third announced as the developer continues to iterate during peak visibility. This combination of strong viral adoption and active post-launch support has helped sustain player engagement at a scale.

Why this matters: This is an update of the game’s 5 million sales which we posted to Niko News last week. The rapid success of Meccha Chameleon underscores how simple, highly shareable indie gameplay concepts can achieve massive scale on PC platforms, highlighting the growing importance of virality (especially via game streamers and VTubers) and rapid live updates in sustaining breakout hits. Notably, the Steam reviews are very positive, yet “mixed” for those in Chinese language.

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GTA VI unavailable for pre-order in select countries, including Bahrain, Qatar, Kuwait and Russia.

The most hotly anticipated game of the year, Grand Theft Auto VI may be unavailable for purchase in some parts of the world. Following pre-orders going live on June 26th, 2026, users from select countries have found that the game is not available on certain digital storefronts. The countries are: China, Lebanon, Kuwait, Bahrain, Qatar, Russia, Chinese Taipei and Oman. No official statement has been made from Rockstar or Take-Two Interactive on the matter.

Why this matters: Notably, the game is listed for pre-order in Saudi Arabia, which is likely due to the introduction of a 21+ age rating that allows for mature games to be approved and following a partnership between Take-Two and AIC Interactive. China has never approved a GTA game and is not expected to, but players will no doubt download the game via the Hong Kong store. It’s unclear if the other countries will be able to pre-order at a later date.

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Saudi Arabia targets Japanese anime, manga, and gaming IP to diversify its economy

Saudi Arabia is targeting Japanese anime, manga, and gaming IP as part of its economic diversification strategy, according to experts Douglas Montgomery and FUJIMURA Tetsu speaking at a June 2026 press conference in Tokyo. The Kingdom’s interest is driven by strong alignment across government, businesses, and consumers, with initiatives including a planned Dragon Ball theme park scheduled to open in 2029. Investment from Saudi entities such as Manga Productions is supporting anime development and creating opportunities for young and international animators.

Why this matters: Saudi Arabia’s investment in Japanese IP highlights growing MENA demand for global entertainment content and signals new funding sources for anime and game production pipelines. For Niko clients, this trend underscores increasing cross-regional collaboration opportunities and the expansion of IP-driven ecosystems beyond traditional Asia markets.

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Vietnam to enforce fines for player-to-player virtual item trading from July 1

Vietnam will begin enforcing Decree 174/2026/NĐ-CP on July 1, imposing fines of $76-114 (VND 2-3 million) on players who buy or sell virtual items, virtual currency, or reward points with other players, while online game operators allowing such transactions may face fines of $2,282-3,043 (VND 60-80 million). The decree reinforces restrictions introduced under Decree 147/2024/NĐ-CP by shifting from prohibition to enforceable penalties, extending regulatory responsibility to both players and game operators.

Why this matters: The most important development is not the introduction of a new prohibition, but the addition of clear financial penalties that significantly increase regulatory enforcement risk. The change may reduce informal gray-market trading while encouraging monetization through publisher-controlled systems, making compliance and transparent virtual economy design increasingly important for companies operating in Vietnam.

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Indonesia deactivates 4.7 million underage accounts under new platform risk regulations

Minister of Communication and Digital of Indonesia, Meutya Hafid, reported that 4.7 million accounts belonging to users under 16 have been deactivated since restrictions on high-risk digital platforms were introduced on March 28, 2026. Major platforms affected include X, Bigo Live, Instagram, Facebook, Threads, TikTok, YouTube, and Roblox, with TikTok removing 4.1 million accounts and YouTube about 600,000.

Why this matters: The policy stems from Government Regulation No. 17 of 2025 (PP Tunas), which requires high-risk platforms to deactivate accounts belonging to users under 16 and submit risk-based self-assessment reports by June 6. This policy signals a shift toward platform-enforced age compliance in Southeast Asia, creating new operational risks and compliance costs for social and gaming platforms like Roblox.

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Alibaba plans to sell its game segment for over $1 billion

Alibaba is reportedly exploring the sale of its games subsidiary Lingxi Games, according to Chinese media reports. The company is said to have approached multiple potential buyers, including 37 Interactive Entertainment, China Ruyi, Century Huatong, and Giant Network. Neither Alibaba nor the reported bidders have officially confirmed the discussions. Lingxi is best known for Three Kingdoms: Tactics, one of China’s highest grossing strategy games, which has consistently ranked among the country’s top iOS revenue generating titles since launching in 2019.

Why this matters: The reported sale aligns with Alibaba’s broader strategic refocus on artificial intelligence. In August 2025, Lingxi’s reporting structure was moved outside Alibaba’s entertainment division and placed under the group’s CFO, signaling a shift in internal priorities. More broadly, the reported discussions reflect an ongoing trend of major Chinese technology firms streamlining noncore businesses while concentrating investment on AI and other strategic growth areas.

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Honor of Kings introduces community moderation and tougher penalties

Honor of Kings launched its S44 season on June 25, introducing a series of competitive integrity and player behavior updates aimed at improving the ranked experience. The headline feature is a new community moderation system that combines automated detection with player voting to deliver more accurate rulings on in-game violations. Tencent has also strengthened its ranked match enforcement. Players removed from matches for rule violations will now receive additional ranked point deductions, while teammates affected by the misconduct will receive increased point compensation.

Why this matters: The update follows an intensified anti cheating and account moderation campaign during the first half of 2026. The company suspended approximately 4.03 million accounts for severe violations related to inappropriate profile content and other community offenses, underscoring the scale of ongoing moderation across one of the world’s largest live service games. The introduction of player assisted moderation mirrors a broader industry trend in which developers supplement automated detection with community input to improve the accuracy and perceived fairness of enforcement.

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Chinese iOS developers file anti-trust complaint over Apple App Store fees

A group of 48 Chinese iOS developers have filed a complaint with China’s State Administration for Market Regulation, alleging that Apple is abusing its dominant position in the country’s mobile app ecosystem through unfair App Store commission policies. The complaint argues that Apple has failed to deliver on promises to offer Chinese developers the lowest available commission rates. In March, Apple reduced its standard App Store commission in China from 30% to 25% for paid apps and in app purchases, while lowering subscription renewal fees and commissions under its Small Business and Mini Apps Partner programs from 15% to 12%. However, the developer group contends these reductions do not go far enough.

Why this matters: A central argument is that Apple continues to prohibit alternative app marketplaces and third party payment systems on iOS in China. The developers claim that greater distribution and payment flexibility could reduce effective commission rates to as low as 5%, substantially lowering costs for local creators. Apple has already conceded on this point in other markets around the world, but not in China. Similar antitrust challenges have emerged in the European Union, the United States, Japan, and South Korea, where regulators have increasingly questioned platform restrictions on payments and app distribution.

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

Esports has become a major global entertainment platform for Gen Z, offering the same sense of passion, identity, and community found in other sports. To better understand this audience, Niko Partners surveyed 8,000 Gen Z esports fans and estimated that the global Gen Z esports audience now exceeds 400 million people. Produced in collaboration with Hero Esports and ESL FACEIT Group, this free whitepaper explores what drives Gen Z esports fans, how they engage with brands, and what fuels their loyalty. Discover key insights for brands looking to connect with one of the world’s most engaged audiences.

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Asian Games 2026 esports competition schedule finalized

The Japan esports Association (JESU) has finalized match dates and times for all esports events at the Asian Games 2026 (Aichi-Nagoya), where esports will be contested as part of the official medal program featuring national team competition. The esports events will take place from September 23 to October 2 at Exhibition Hall D of Aichi Sky Expo and include competitions for: Gran Turismo 7, eFootball, Naraka: Bladepoint, Puyo Puyo eSports, Pokemon Unite, Honor of Kings, PUBG Mobile, Identity V, Mobile Legends: Bang Bang, and League of Legends.

Why this matters: Esports has earned a solid position at the Asian Games following its initial inclusion as a demonstration event in Jakarta 2018. Esports was upgraded to a medal event for the 2022 Asian Games in Hangzhou and retains its media event status in 2026. Notably, 11 esports games are included in the 2026 edition compared to 7 in 2022, with notable Japanese titles including eFootball, Gran Turismo 7, Puyo Puyo Tetris and Pokemon Unite being included.

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Tencent evaluating global studio portfolio

Tencent is in talks to exit some of its minority investments in Japanese studios including Marvelous, the developer of the Rune Factory, Daemon x Machina, and Story of Seasons games. At the same time, Tencent does not intend to inject additional capital into French developer Don’t Nod, best known for narrative-focused titles such as Lost Records Bloom and Rage and Aphelion. Don’t Nod subsequently confirmed Tencent’s decision, although the company emphasized that it is continuing efforts to secure alternative financing and support ongoing development. No Japanese studios have released statements at this time.

Why this matters: The situation also reflects a wider trend among Chinese gaming giants. Over the past year, both Tencent and NetEase have reassessed portions of their overseas investment portfolios, placing greater emphasis on profitability, strategic alignment, and capital efficiency. This has resulted in fewer new investments, reduced funding commitments, and increased scrutiny of existing overseas holdings. However, it’s believed that Tencent’s investments in major Japanese studios including PlatinumGames, FromSoftware, and the latter’s parent company, Kadokawa Corporation, will be unaffected.

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Dubai Esports and Games Festival 2026 draws over 43,000 attendees

Between May 22-June 7, Dubai Esports & Games Festival (DEF) 2026 attracted over 43,000 attendees. The event featured gaming, esports, education, and digital culture activities alongside 66 esports tournaments offering prizes totaling AED1 million ($272,294). GameExpo served as the flagship three-day consumer event at Dubai World Trade Centre, featuring immersive zones, esports tournaments, influencers, and participation from visitors of more than 100 nationalities. The festival also emphasized inclusivity, creativity, and talent development through female esports competitions, cosplay events, and support for local artists and SMEs, alongside education initiatives such as AI, robotics, and career-focused programs.

Why this matters: Organized by the Dubai Festivals and Retail Establishment (DFRE), the festival reinforced Dubai’s ambition to become a global hub for gaming and digital innovation under the Dubai Economic Agenda D33. DEF 2026 highlights how government-backed gaming festivals in MENA are scaling into multi-sector platforms spanning esports, education, and digital innovation, reinforcing Dubai’s strategy to attract global talent and investment. Dubai is currently undergoing a challenging period due to impacts from the 2026 Iran War, which led to a slight decline in attendance this year compared to 2025.

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Meccha Chameleon surpasses 5 million sales within 10 days of Steam launch

Meccha Chameleon, a PC hide-and-seek game released on Steam by Japanese solo indie developer LEMORION, has surpassed 5 million copies sold within 10 days of its June 10, 2026 launch. The game reached 1 million copies in four days, doubled to 2 million the following day, passed 3 million within a week, and reached 5 million shortly after. It also recorded a peak of over 240,000 concurrent players and holds an 80% positive rating across more than 10,000 user reviews.

Why this matters: Meccha Chameleon is providing a unique twist on the “prop hunt” game mode that has become popular recently by allowing players to paint their character to blend in with the game world. The game’s rapid growth has been supported by viral exposure from Japanese VTubers and international streamers, contributing to its strong global visibility and continued engagement. This title’s rapid growth highlights how viral visibility through streaming platforms continues to drive breakout success for indie PC games globally.

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Nintendo to launch first pop-up store in Malaysia

Nintendo will launch its first-ever pop-up store in Malaysia at Ombak KLCC in Kuala Lumpur from September 12, 2026, through the end of December. The store will showcase a wide selection of Nintendo games and character merchandise, including popular items from Japan alongside the latest releases. Exclusive merchandise featuring bright and lively Mario-themed designs for Malaysia will also be available.

Why this matters: Nintendo’s first pop‑up retail activation in Malaysia signals a broader push to deepen direct fan engagement and merchandise-driven revenue in Southeast Asia, where physical retail experiences are increasingly used to complement digital game ecosystems. Southeast Asia has been a key target market for Nintendo this generation with an official SEA launch for the Switch 2 and an official eShop rollout taking place last year.

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NetEase introduces Infinite Borders x Minecraft collaboration

Infinite Borders and Minecraft had a major crossover event this June. Running through July 10, the event transforms the traditionally realistic Three Kingdoms strategy experience of Infinite Borders into one that incorporates Minecraft‘s iconic block based visual style, generating more than 140 million topic views across Chinese social media platforms within days of launch. Infinite Borders is developed by NetEase, while Minecraft is distributed by NetEase in China. The event also extends into Minecraft itself through collaboration themed cosmetics, creating engagement opportunities for players across both ecosystems.

Why this matters: A notable aspect of the collaboration’s success has been its viral community engagement. NetEase deliberately embraced the visual contrast between the two franchises, using slogans and in-game mechanics that encouraged player-generated memes and content creation. The collaboration demonstrates a growing shift in how Chinese publishers approach IP partnerships. Rather than focusing exclusively on thematically similar brands, developers are increasingly leveraging unexpected combinations to generate attention and social media engagement.

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Koei Tecmo halts new game availability in Indonesia pending IGRS ratings

Koei Tecmo has region-locked several newly announced titles in Indonesia, making them unavailable on Steam and the PlayStation Store. Koei Tecmo confirmed the restrictions are due to the absence of official ratings from the Indonesia Game Rating System (IGRS), which is required for distribution under Indonesia’s Ministry of Communication and Digital (Komdigi). The company has submitted classification applications and is awaiting approval before restoring availability, amid a broader temporary pause in the IGRS verification process since April 2026.

Why this matters: This disruption is linked to the Indonesian government’s temporary suspension of the IGRS system, which appears to have caused confusion and communication gaps with international publishers. Regulatory uncertainty in Indonesia’s IGRS system is already disrupting global publisher release pipelines, highlighting rising compliance risks for international game launches in Southeast Asia. If prolonged, this could delay market access and shift publisher prioritization away from Indonesia despite its large player base.

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Pop Mart shuts down mobile game as gaming strategy fails to gain traction

Pop Mart has announced the closure of its self-developed mobile game Dream Home, ending the company’s first major attempt to enter the games industry. The title launched on June 27, 2024, and briefly reached the top 50 of China’s iOS grossing chart before rapidly declining. Within a month, the game had fallen out of the top 200 and did not return to the rankings after December 2024. Dream Home was designed to extend the value of Pop Mart’s intellectual property portfolio by incorporating many of the company’s popular designer toy characters.

Why this matters: The game’s weak commercial performance demonstrates the difficulty of translating success in consumer products into the highly competitive gaming market. While Pop Mart has built a global business around collectible IP such as Labubu, its gaming initiatives have underperformed expectations. Beijing Paku Interactive, Pop Mart’s wholly owned subsidiary and the sole developer and operator of Dream Home, generated revenue of just RMB 2.7 million ($380,000), while net losses declined YoY to RMB 70.5 million ($9.8 million).

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Tencent starts testing vertical screen version of QQ Speed

Tencent has begun limited closed beta recruitment for QQ Speed Vertical Edition, with testing applications open until June 28. The title has appeared in the QQ Game Center, marking the first public indication that Tencent is exploring a vertically oriented version of one of its longest running racing franchises. The original QQ Speed launched on PC in 2010 and expanded to mobile in 2017, becoming one of China’s most successful arcade racing franchises. While the existing mobile version already targets a broad audience, it remains fundamentally designed around landscape gameplay and more traditional racing controls.

Why this matters: The new vertical format suggests Tencent is experimenting with a significantly more accessible gameplay experience. Vertical mobile games are typically optimized for one handed play, shorter sessions, and simplified controls, making them well suited for casual users and mobile first audiences. The format has become increasingly popular in China, particularly among users engaging with lightweight games during short play sessions throughout the day. A vertical version could potentially lower barriers to entry for new players while creating opportunities for deployment across emerging distribution channels such as mini game ecosystems, where lightweight experiences have seen substantial growth.

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

Krafton has launched a global beta test for Ally Duo, a new arcade mode in PUBG Battlegrounds that pairs players with an AI companion. The two week beta runs from June 17 to July 1 and supports voice interactions in Chinese, English, and Korean. The mode features Ella, an AI-powered companion built on Krafton’s PUBG Ally technology. Players team up with Ella and can issue voice commands related to movement, item collection, combat support, and strategy. Unlike traditional NPCs, Ella is designed as a Co Playable Character (CPC) that actively collaborates with players and adapts to evolving gameplay situations.

Why this matters: PUBG Ally is powered by an on device small language model built using Nvidia ACE technology and incorporates speech to text and text to speech functionality. According to Krafton, the system can process both player commands and real time game context to determine appropriate actions. The AI is designed to respond with low latency for immediate gameplay tasks while also handling more complex strategic decisions that require contextual understanding. One potential use case is addressing a common frustration in team based battle royale gameplay, where human teammates may separate from the group or fail to coordinate effectively.

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Roblox to keep chat off in MENA until Arabic moderation matures

Roblox Corporation has confirmed that chat functionality remains disabled across much of the Middle East and North Africa as the company continues developing Arabic language moderation and safety systems. The restriction has been in place since last year and applies to users of all ages in most affected markets. According to Roblox, its English language personal information detection technology currently identifies 98% of attempts to share sensitive information that could place players at risk. However, the company believes its Arabic language moderation tools have not yet reached a comparable level of effectiveness.

Why this matters: The policy aligns with Roblox‘s broader safety framework. Globally, chat is disabled by default for users under the age of nine, while additional safeguards and age appropriate protections are applied across the platform. In MENA, however, the current restrictions extend beyond younger users due to regulatory and content. While temporary restrictions and bans imposed in certain countries have since been resolved through engagement with local authorities, Egypt continues to block access to the platform, with no clear timeline for a potential reinstatement.

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Nintendo tightens Switch 2 purchasing rules in Japan

Nintendo has introduced new purchase restrictions for the multi-language version of the Nintendo Switch 2 in Japan after identifying increased demand from resellers seeking to exploit regional price differences created by the weak Japanese yen. Under the revised rules, purchases will be limited to one console per Nintendo account. In addition, buyers must have accumulated at least 50 hours of Nintendo Switch playtime by the end of May 2026 to qualify. Nintendo has also temporarily paused sales while implementing the new purchasing framework.

Why this matters: The move follows recent hardware price increases across the United States, Canada, and Europe. The restrictions mirror measures introduced during the Switch 2 launch in June 2025, when consumers in the United States, Canada, and the United Kingdom were required to have at least two years of Nintendo Switch Online membership alongside 50 hours of gameplay activity. Nintendo stated at the time that the goal was to prioritize genuine players over resellers. The decision highlights the ongoing challenges hardware manufacturers face in balancing supply, demand, and regional pricing strategies.

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NetEase revives development on Three Kingdoms strategy game

NetEase has revived development of Infinite Borders: Three Kingdoms, a premium single player Three Kingdoms strategy title that was cancelled last year despite four years of development and a team of approximately 70 developers. The project is now being maintained by a team of just eight developers, with AI tools and user generated content positioned as core pillars of future content creation and iteration. According to the development team, these technologies are necessary to accelerate content production, updates, and long term support given the significantly reduced headcount.

Why this matters: The game originally featured a large scale strategic map with terrain and weather systems, multiple factions and generals, and sandbox style gameplay elements. These systems are now being leveraged to support UGC creation. For NetEase, the project serves as an early example of how previously large scale games may evolve into creator driven platforms, allowing smaller teams to support content rich experiences that would previously have required significantly larger development resources. The title also highlights how AI and UGC are increasingly being viewed not just as player features, but as tools to improve the commercial viability of niche premium game projects.

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Meccha Chameleon sells 2 million units in less than a week

Meccha Chameleon, an innovative multiplayer hide-and-seek game by Japanese indie game developer, Lemorion, has sold over 2 million units since its Steam debut on June 10, 2026. Remarkably, the game jumped from 1.1 million sales on June 14 to 2 million by the evening of June 15, moving nearly a million units in a single 24-hour period. The multiplayer game, designed for groups of 2 to 10 players, features a unique mechanic where players customize blank white avatars with drawings to camouflage themselves against a team of seekers. The developer is sustaining momentum with a near-launch map update and an ongoing sale.

Why this matters: Meccha Chameleon is providing a unique twist on the “prop hunt” game mode that has become popular recently by allowing players to paint their character to blend in with the game world. The title builds on the social gaming trend that accelerated during COVID by incorporating team focused elements and streamer friendly gameplay, which has caused it to go viral. It’s also another example of a small indie developer finding success on Steam with a low budget title, which is becoming a common occurrence.

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miHoYo wins defamation lawsuit against gaming content creator

miHoYo has secured a final legal victory in a defamation lawsuit against a content creator named Li, known online as Fanshu Jianshangjia. According to the company’s legal department, the court ruled in miHoYo’s favor and ordered Li to pay RMB 500,000 ($69,700) in damages and issue public apologies across multiple social media platforms. Li operated accounts on Bilibili, Douyin, Kuaishou, and Xiaohongshu, where he regularly published content related to miHoYo titles including Genshin Impact, Honkai: Star Rail, and Zenless Zone Zero.

Why this matters: miHoYo alleged that the creator repeatedly used insulting language toward its games and player communities while publishing misleading commentary and reviews. According to the court’s findings, the content in question was not considered ordinary game discussion, news reporting, or commentary conducted in the public interest. The ruling comes amid growing scrutiny of “outrage content” across global gaming communities, where some creators have built audiences through highly provocative or sensationalized criticism.

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Chinese players criticize Stellar Blade: Blood Rain over some AI-generated aspects

Stellar Blade: Blood Rain has received minor criticism from Chinese players following the release of its reveal trailer, with fans identifying what they believe to be AI-generated background assets in several scenes. The criticism centers primarily on environmental details rather than core gameplay footage. Players highlighted architectural elements that appeared visually inconsistent and, more notably, several instances of Chinese text that were either nonsensical or unreadable. The game is said to be taking place in the Chinese city of Chongqing.

Why this matters: Despite the criticism, interest in the sequel remains strong in China. The original Stellar Blade performed well following its PC launch and developed a sizable Chinese player base, making Blood Rain one of the more closely watched upcoming action titles in the market. Players are generally more accepting of AI when it remains invisible within production pipelines, but visible AI artifacts can quickly become a focal point for criticism.

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Honor of Kings adds football mini game ahead of World Cup

Tencent has added a new limited time 3v3 football mode to the test server of Honor of Kings, expanding the game’s portfolio of alternative gameplay experiences beyond its core MOBA format. In the new mode, teams of three players compete using football themed mechanics rather than traditional MOBA objectives. Players can dribble, shoot, tackle, pass, and sprint, with the first team to score four goals declared the winner. Matches are capped at six minutes, after which the team with the higher score wins.

Why this matters: The addition aligns with the start of the FIFA World Cup. Rather than relying solely on traditional events and cosmetics, Chinese publishers are increasingly introducing entirely new game modes to drive engagement during major global events and holidays. This approach helps extend player engagement, provides fresh content between major updates, and allows Tencent to capitalize on global events such as the World Cup without requiring a separate licensed football title.

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Unity China launches AI coding assistant for developers

Unity China has begun public testing of Cowork, an AI development assistant designed specifically for Unity China Engine projects. The tool’s core functionality centers on AI-assisted programming, but also includes project understanding, asset generation, code review, debugging and repair, and task automation capabilities. This initiative also introduces a new recurring monetization opportunity for Unity, as development-related AI workloads typically generate significantly higher token consumption and usage frequency than standard chatbot applications.

Why this matters: What differentiates Cowork from general purpose AI coding assistants is its engine level integration. Because Unity China has direct access to the underlying architecture of its game engine, the tool can interact with engine systems, asset pipelines, editor functions, and project structures in ways that external AI coding tools cannot. The launch reflects a broader shift toward AI-assisted game development across China.

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