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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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 →

The Super Mario Galaxy Movie has become the first film of 2026 to surpass $1 billion at the global box office, according to Box Office Mojo. Produced by Universal Pictures and Illumination in partnership with Nintendo, the animated sequel expands the company’s rapidly growing entertainment strategy around its gaming IP portfolio. The film is based on the Super Mario universe, with particular inspiration drawn from the Galaxy series of games, which originally launched on the GameCube and later received a Nintendo Switch remaster in 2025. The achievement is particularly notable given the film’s mixed reception among critics given it currently holds a 42% score on Rotten Tomatoes.

Why this matters: This is Nintendo’s second movie to reach the $1 billion milestone following the success of The Super Mario Bros. Movie, which generated approximately $1.36 billion worldwide following its release in 2023. With a reported production budget of approximately $110 million, the movie has already generated revenue many times greater than its development and marketing costs. This continues Nintendo’s recent success in extending its franchises beyond games into film, theme parks, merchandise, and other entertainment categories. However, we note that non-console platform revenue continues to account for around 5% of Nintendo’s earnings, highlighting the high reliance on its traditional business.

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Livestreaming Tracker May 2026 Highlights: New Releases and Major Updates Diversify China’s RPG Viewership Landscape

RPG titles led China’s livestreaming charts in May 2026, while Chaos Zero Nightmare quickly gained traction and secured a notable share of RPG viewership. Read the key highlights from Niko’s China Games & Livestreaming Tracker here.

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Saudi eLeague 2026 highlights women’s esports growth in Saudi Arabia

The Yalla Saudi eLeague Women 2026 was held from February 23 to June 6, featuring online preliminary rounds and live finals at the Saudi Esports Federation Arena in Riyadh, highlighting the growing competitiveness and talent among female gamers in the region. Saudi female players competed in a competitive environment across Overwatch 2, Valorant, EA FC26, and Call of Duty: Black Ops 7. Yalla Group joined as the official partner of the Saudi eLeagues this year and operated interactive booths showcasing Yalla Ludo, Jalsat, and Turbo Match.

Why this matters: The Championship Festival Finals, held from May 1 to June 6, gathered players, fans, creators, and industry stakeholders at SEF Arena in Riyadh, representing one of the region’s largest esports gatherings. Saudi eLeague, organized by the Saudi Esports Federation and established in 2020, continues to support Vision 2030 through structured competitions designed to expand the Kingdom’s esports landscape, with the Women’s eLeague reinforcing its commitment to supporting esports growth and diversity in Saudi Arabia and the wider MENA region. Women gamers continue to be on the rise in Asia & MENA (read our latest Knowledge Brief about this).

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Asian Champions League generates 380 million views

Hero Esports announced that the 2026 Asian Champions League (ACL) generated more than 380 million total play views across its three featured titles: Dota 2, Counter-Strike 2, and Mobile Legends: Bang Bang. The second edition of the tournament took place in Shanghai from May 1 to May 24, combining eight days of offline competition with 18 days of online broadcasts. Matches were hosted at venues in Yangpu and Minhang districts and distributed across China’s major streaming platforms including Bilibili, Douyin, DouYu, Huya, and Kuaishou.

Why this matters: The ACL demonstrates the continued maturation of Asia’s esports ecosystem beyond individual game publishers and leagues. Beyond competition, Hero Esports emphasized the commercial ecosystem surrounding the event. The event incorporated hospitality services, tourism support, retail activations, and player appearances as part of a broader effort to integrate esports with local commerce and entertainment. The event also highlights Shanghai’s growing role as a global esports destination. The event was also broadcast in multiple languages, reflecting Hero Esports’ ambition to position ACL as a pan Asian esports property.

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Tencent launches AI powered interactive storytelling platform

Tencent Games has launched Zaohua Workshop, an AI powered interactive storytelling platform developed by its Lightning studio. The platform is positioned as a one stop creation and distribution ecosystem for AI generated interactive narrative experiences, allowing users to both create and play full motion video games. The platform significantly lowers the barriers to content creation by enabling users to generate interactive narrative experiences through natural language prompts without requiring programming, game design, or development expertise.

Why this matters: Zaohua Workshop currently supports a broad range of genres and content can be generated across multiple visual styles. At launch, nearly 60 AI generated interactive experiences were available across categories such as mystery, fantasy adventure, urban romance, wuxia, and science fiction. Early demonstrations suggest the platform can produce interactive video based experiences and lightweight gameplay with minimal creator input. The initiative represents Tencent’s latest effort to apply generative AI directly to consumer facing content creation.

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Slay the Spire 2 shows split between Chinese and Western players

Slay the Spire 2 has continued to face significant review pressure from Chinese players despite achieving strong commercial success in the market. China has emerged as the game’s largest market, with sales exceeding 2 million copies according to our estimate, yet only 28% of Chinese language Steam reviews are positive compared to 86% of English language reviews. Recent analysis from leading Chinese community figures has provided additional context behind the backlash. While balance concerns have been widely discussed previously, one notable issue involves differing gameplay habits between Chinese and Western audiences.

Why this matters: Chinese players often approach optimization, progression efficiency, and mastery systems differently, resulting in gameplay expectations that may not align with developer intentions or overseas player preferences. More importantly, the situation highlights structural communication challenges within China’s gaming ecosystem. Unlike Western communities that rely heavily on Discord, Reddit, and other direct developer communication channels, Chinese players have fewer avenues to engage directly with overseas developers. As a result, Steam reviews frequently function as a primary feedback mechanism rather than solely a purchasing recommendation tool.

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AI-driven memory shortages lead to increased prices for smartphones in China

Rising memory costs driven by surging AI infrastructure demand are beginning to materially impact China’s smartphone market, with manufacturers increasing prices across a wide range of mid range devices that have traditionally been the industry’s most competitive segment. Recent launches including the Honor 600, Oppo Reno16, Vivo S60, and Huawei Nova 16 have generally been priced between RMB 300 ($44) and RMB 1,000 ($148) higher than their predecessors. According to TrendForce, LPDDR5X DRAM prices are expected to increase between 78% and 83% quarter over quarter, while LPDDR4X prices are forecast to rise between 70% and 75%.

Why this matters: These components are critical to smartphone production, making memory one of the largest contributors to recent cost inflation across the industry. Companies such as Oppo and Huawei are attempting to justify higher prices through improved camera systems, larger batteries, and the introduction of flagship features into mid range devices. Meanwhile, Vivo and Honor have introduced lower specification “vitality” variants to maintain lower entry price points while increasing prices on standard models. For mobile gamers, higher prices and longer upgrade cycles will mean players continue to be tied to existing GPU specs for the foreseeable future.

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DeepSeek in talks to raise $7 billion from investors including gaming companies

DeepSeek is reportedly preparing its first external fundraising round, seeking approximately RMB 50 billion ($7 billion) in new capital. According to Reuters, the round would value the company at between RMB 350 billion and RMB 400 billion ($49 billion to $56 billion) post investment, making it one of the most valuable AI startups in China. Among external investors, Tencent is expected to invest RMB 10 billion ($1.5 billion), while CATL is reportedly committing RMB 5 billion ($740 million). Additional discussions are said to be underway with China’s National AI Industry Investment Fund, NetEase, and JD.com. Fewer than 10 investors are expected to participate.

Why this matters: The scale of the proposed financing reflects the growing strategic importance of AI within China’s technology sector. Since emerging as one of China’s leading large language model developers, DeepSeek has become a prominent domestic alternative in a market increasingly focused on technological self sufficiency and reduced dependence on foreign AI infrastructure. Both Tencent and NetEase have been rapidly increasing investment in AI across development pipelines, content generation, NPC systems, UGC creation tools, and live service operations, with Tencent previously announcing a partnership with DeepSeek for smart NPCs in Peacekeeper Elite.

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Arc Raiders to get enhanced PVE mode in China version

Arc Raiders, developed by Embark Studios and backed by Nexon was originally released in October 2025 and has already sold more than 16 million units in less than a year. The game has already received a license to launch in China, published by Tencent, and is already undergoing testing. Tencent and Embark have created a specific PVE mode in the China version of the game where friendly fire is disabled by default and players have to work together to secure objectives. Meanwhile, another mode adds either a King or Queen to the map alongside a Matriarch, unleashing mayhem that indirectly incentivizes players to work together against the chaos.

Why this matters: While the Chinese player base on the international version remains limited, they have been vocal about the shift away from PvE in the game. While players generally accepted PvP as a core part of the extraction shooter genre, feedback circulating within Chinese communities suggested some players perceived the balance between PvE and PvP as changing in ways that undermine the game’s original appeal. It’s clear that the developers are listening to early feedback and using that to shape the experience for the official China launch.

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RPG titles dominated China’s livestreaming landscape in May 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 May 2026, driven by a mix of established titles, major content updates, and new launches. Notably, Chaos Zero Nightmare captured a meaningful share of RPG viewership during the month, highlighting the genre’s increasingly competitive landscape.

• miHoYo’s Honkai: Star Rail, a F2P RPG cross-platform mobile/PC/console game, garnered 37 million viewers (-69% MoM) and ranked #16, a drop from #4 in the prior month. We observe that the game released the 4.2 version 3rd anniversary update on April 22, which ran for approximately six weeks. Meanwhile, miHoYo held the 2026 Honkai: Star Rail Carnival between April 23 and May 3, which consisted of an offline exhibition, an online music performance, and online faction battles.

  • We observe that all miHoYo titles recorded MoM declines in May, which may suggest increased competition from new releases like Chaos Zero Nightmare and major content updates across other titles such as Kuro Games’ Wuthering Waves and Punishing: Gray Raven.

• In a similar vein, Honor of Kings: World was unable to maintain post-launch momentum in the second month, unlike Roco Kingdom World.

  • We attribute this to weaker content stickiness after the initial IP-driven launch spike. While Honor of Kings: World benefited from the strength of Tencent’s flagship MOBA IP and strong early curiosity, Chinese player feedback suggests that post-launch sentiment became more polarized due to limited content depth and a lack of differentiation from other open-world RPGs.

• Kuro Games’ Wuthering Waves, a F2P RPG cross-platform mobile/PC/console game, garnered 43.9 million viewers (+109% MoM) and ranked #14, a rise from #24 in the prior month. The title had already built momentum heading into May, following its 2^nd anniversary celebration via the launch of Version 3.3 on April 30.

  • Notably, the Version 3.4 preview livestream was aired at 19:00 on May 29 across Bilibili, Huya, and Douyu. Our Niko Index chart recorded a significant surge in viewership on that same day, with Bilibili platform alone attracting 16.5 million views in a single day. The title’s 3.4 update was subsequently launched on June 8.

• Kuro Games’ Punishing: Gray Raven, a F2P RPG cross-platform mobile/PC game, garnered 8.1 million viewers (+2,602% MoM) and ranked #39, a rise from #202 in the prior month. We observe that the game recorded an initial one-day spike on May 23, driven by its Homecoming Voyage Version Preview livestreamed at 19:00, with Bilibili platform alone attracting 7.8 million views in a single day. The title’s Homecoming Voyage update was subsequently launched on June 2.

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

Giant Interactive has launched Tomb Busters outside Asia for the first time following the title’s breakout success in China. Originally released domestically in January 2025, the free to play mobile game has surpassed 200 million downloads, 10 million DAUs, and generated more than 140 billion social media views in China. Tomb Busters blends extraction style gameplay with cooperative horror mechanics inspired by themes rooted in Chinese local folklore. Players explore ancient tombs either solo or in four player groups while navigating traps, supernatural threats, random events, and puzzle mechanics. The game was specifically designed to balance tension and fear during solo play with the addition of comedic moments and group chaos during multiplayer sessions.

Why this matters: The title’s popularity has had a notable ripple effect across China’s live service ecosystem. Multiple major games including Identity V, Justice Online, Eggy Party, Peacekeeper Elite, and Party Stars have introduced their own Tomb Busters inspired limited modes following the game’s viral growth. The title has also drawn comparisons to Lethal Company due to its cooperative social gameplay structure, though Tomb Busters differentiates itself through mobile accessibility, Chinese horror aesthetics, and AI driven NPC systems capable of mimicking human behavior and interacting dynamically with players. The game has done extremely well with younger and female audiences, and its social gameplay dynamics have helped create viral moments on social media and livestreams.

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Asia & MENA video game revenue will pass $100 billion by 2030

Niko’s 2026 market model with forecast through 2030 shows player spending on video games in Asia & MENA increased at a faster pace in 2025 compared to the prior year, and the market continues to demonstrate resilience and long-term growth potential amid ongoing geopolitical uncertainty, shifting trade policies, and broader economic volatility impacting industries worldwide.

The Asia and MENA video games market generated revenue of $88.9 billion in 2025, up 2.6% YoY. Looking forward, growth looks even stronger, with the market projected to climb 3.4% in 2026 to $91.8 billion, and reach $103.6 billion in 2030, at a 5-year CAGR of 3.1%. 

Read our post and download extensive key takeaways here.

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Sony launches new marketing campaign for PS5 in China

Sony Interactive Entertainment has launched a new China focused PlayStation 5 marketing campaign titled “The Show Happens on PS5,” centered around football to align with the upcoming FIFA World Cup. The campaign features well known Chinese sports commentator Guan Zeyuan joining Sony’s PlayStation Playmaker ambassador program. The advertising initiative positions PS5 as both an immersive gaming platform and a social entertainment device connected to sports fandom, competition, and family interaction.

Sony stated that the “PlayStation Football Carnival Season” campaign will run from May through July and include both online and offline activations integrating football culture with interactive entertainment experiences.

Why this matters: Sony’s use of sports culture, influencer integration, and offline activations also reflects the growing importance of localized cultural marketing in China, where social engagement and experiential events are becoming increasingly important for driving hardware relevance and ecosystem loyalty. The company plans to promote the campaign across major Chinese social platforms including Weibo, WeChat, Bilibili, Douyin, and Xiaohongshu. However, the campaign comes at a time when Sony has just increased PlayStation 5 prices.

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WeChat Mini Games ecosystem surpasses 500m MAUs

Tencent held the 2026 WeChat Mini Games Developer Conference in Hangzhou this week, where the company revealed new data and insights on the mini game ecosystem.  According to Tencent, the number of WeChat mini game developers reached 500,000 in 2025, up from approximately 400,000 in 2024. Monthly active users surpassed 500 million, further cementing WeChat Mini Games as one of the largest gaming ecosystems globally. Female players now account for 47% of total users, while people aged 24 to 40 represent roughly half of the audience. Notably, users over the age of 40 account for another 40%, highlighting the category’s unusually broad demographic reach compared to traditional mobile gaming segments.

Why this matters: Tencent stated that the platform’s strategic focus is shifting away from simply maximizing user scale toward increasing retention, extending playtime, and expanding genre adoption across different devices and monetization structures. Average daily usage time per user exceeded 60 minutes, reflecting increasingly deep engagement levels. Tencent stated that more than 80% of minigame developers are small and medium sized teams with fewer than 30 employees, while many projects initially begin with only three or four developers. Company executives suggested AI tools may increasingly allow even individual creators to build commercially viable games in the future.

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World of Tanks: Heat sees negative reviews across the board

Wargaming officially launched World of Tanks: Heat on Steam on May 26, 2026 following more than four years of development. Built on a new proprietary engine, the hero driven tank action title attracted significant early interest from veteran World of Tanks players due to its upgraded graphics and faster paced gameplay structure. China quickly emerged as the game’s second largest market by review volume, accounting for 21% of total Steam reviews. However, approximately 80% of Chinese reviews were negative, with criticism centered around monetization, progression pacing, and technical optimization. Global reviews were also fairly negative.

Why this matters: Chinese players described progression as excessively grind heavy, with low currency acquisition rates and high unlock requirements for tanks, agents, upgrades, and equipment systems. Some players estimated it could take hundreds of matches to unlock new content without spending money, leading to accusations that the game strongly pressures users toward monetization despite positioning itself as a more accessible, fast paced experience. Technical performance issues further amplified frustration, with reports of unstable framerates, stuttering, and crashes even on relatively capable hardware configurations.

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Monetary stakes on ‘uncertain outcomes’ is gambling, says India’s Supreme Court

India’s Supreme Court, in a judgement on several cases between state governments and real-money game (RMG) operators, has said that monetary stakes on ‘uncertain outcomes’ counts as gambling, whether the underlying game is a game of skill or game of chance. ‘Online gaming operators are not mere intermediaries facilitating transactions...but themselves constitute suppliers of such actionable claims within the framework of CGST (Central Goods & Services Tax) claims, the Court said while pronouncing its judgement on four cases.

Why this matters: While the ruling should have no direct impact on video games, it is another setback for real-money game companies who had filed a motion with the Supreme Court against retrospective tax claims by the government. Given the ban on RMG in August 2025, it is likely that many RMG companies will not have the funds necessary for paying these claims. We believe video game companies should remain aware of these developments, particularly as regulations around video games (dubbed ‘social games’ and ‘esports’ by the recent PROG Rules) evolve to address matters such as lootboxes, tournament prize pools, and related topics.

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Cygames renews title sponsorship of France’s Grand Prix de Paris horse race

Cygames announced on May 28 that it will continue its partnership with France Galop as the title sponsor of the Grand Prix de Paris horse race for a second consecutive year, with the race again branded as the “CYGAMES GRAND PRIX DE PARIS.” As part of the agreement, the Umamusume Pretty Derby publisher will receive prominent on-site branding across race programs, starting gates, track boards, and saddle towels, and will also sponsor two additional races on the same day.

Why this matters: Cygames’ sponsorship of a major European horse race event highlights how Japanese game companies are expanding global brand visibility beyond traditional marketing channels. This reflects a broader trend of leveraging cross-media IP with notable real-world counterparts such as Cygames’ horse racing game Umamusume, to reach mainstream audiences and strengthen international positioning. The game also had a pop-up at the 2025 Kentucky Derby.

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Qiddiya City partners with MPL MENA to scale esports ecosystem in the region

Qiddiya City has entered a five-year partnership with Mobile Legends: Bang Bang Professional League (MPL) MENA, becoming the league’s Official Partner to support esports growth through broadcasts, events, and grassroots programs, with MPL MENA organized by Moonton Games. The announcement coincided with the MPL MENA Season 9 Grand Finals in Cairo, which achieved 91,542 peak viewers and sold out 3,000 seats, signaling strong demand for live esports in the region. Geekay Esports won the championship, securing a place in the 2026 Esports World Cup Mid-Season Cup. This was followed by Saudi’s Team Falcons advancement to the Wild Card stage.

Why this matters: Qiddiya is developing a 500,000 sqm Gaming and Esports District with multiple arenas, aiming to host large-scale tournaments, attract up to 10 million annual visits, and house up to 25 esports clubs. Qiddiya’s investment signals accelerating state-backed esports infrastructure development in MENA, positioning the region as a global events hub. Moonton’s Mobile Legends: Bang Bang has emerged as a leading MOBA esports game on mobile in both Southeast Asia and MENA, and is also growing in popularity in Latin America as well.

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Lisuan Tech sells out 30,000 preorders for its first gaming GPU

Lisuan Technology has sold out of its 30,000 pre orders for its LX 7G100 consumer graphics card in China ahead of launch. The GPU is priced at $485 and represents one of the country’s most serious attempts to establish a domestically developed gaming graphics card ecosystem. The strong pre-order performance comes despite early benchmark reviews showing the LX 7G100 substantially trails competing products from Nvidia, AMD, and Intel in gaming workloads. Testing reportedly showed Nvidia’s GeForce RTX 4060 outperforming the LX 7G100 by roughly 20% to 70% depending on the title. The launch also reflects the increasing visibility of “domestic substitution” trends within China’s consumer electronics market.

Why this matters: While the card is capable of running mainstream AAA and online games at playable frame rates, driver maturity, software optimization, and ecosystem compatibility remain major weaknesses for all Chinese GPU manufactures relative to global incumbents. Nevertheless, the sellout demonstrates a meaningful level of consumer curiosity and willingness among Chinese buyers to support emerging domestic hardware brands, particularly amid growing geopolitical tensions and restrictions around advanced semiconductor technology. Chinese firms are likely to continue receiving policy support and consumer attention even when performance lags established competitors.

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Square Enix restarts dev on Dragon Quest XII, changes subtitle to Beyond Dreams

In a stream on May 27, Square Enix announced that it has restarted development on Dragon Quest XII, along with updating its subtitle from Flames of Fate to Beyond Dreams. The game was first announced in 2021 and was set to have a darker tone than the previous titles. While there have been few details yet about the game, Yuji Horii, the creator of the franchise and game design lead on XII, stated that the new title will feature the adventures of a protagonist experiencing mysterious dreams. Footage of the game was also revealed during the stream.

Why this matters: Dragon Quest is one of the most popular video game franchises in Japan, but its long development cycles, in line with much of the industry, could see its popularity diminish among younger gamers. Square Enix’s focus on remakes, such as Dragon Quest I and II HD-2D, have partially ameliorated this exposure issue, but with XII restarting development five years after its initial announcement, it is unlikely it will release before a decade has passed since its predecessor, XI‘s, release in 2017, highlighting the extent that development cycles have prolonged in the intervening generation.

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Note to Reader: This post offers a partial set of key takeaways from Niko’s 2026 Market Model Reports. Please fill out this form to automatically receive a free PDF of the complete set of takeaways at the regional and sub-regional level.

Player spending on video games in Asia & MENA increased at a faster pace in 2025 compared to the prior year, and the market continues to demonstrate resilience and long-term growth potential amid ongoing geopolitical uncertainty, shifting trade policies, and broader economic volatility impacting industries worldwide. Many markets in the two regions surpassed revenue expectations published in 2025, and consumer spending patterns, an expanding player base, and multi-dimensional growth are key factors at play.

The Asia and MENA video games market generated revenue of $88.9 billion in 2025, up 2.6% YoY. Looking forward, growth looks even stronger, with the market projected to climb 3.4% in 2026 to $91.8 billion, and reach $103.6 billion in 2030, at a 5-year CAGR of 3.1%. The 13 markets that Niko Partners tracks account for approximately 46.3% of global video game revenue (our model excludes console gaming in Southeast Asia where it is not as prevalent). Total number of players will rise 3.5% in 2026 to 1.77 billion and reach 1.99 billion in 2030 at a 5-year CAGR of 3.1%.

While China, Japan and Korea are the most mature markets in Asia & MENA and will account for an impressive $91.7 billion in player spending in 2030, representing 88.6% of total revenue across the 13 countries we track, the most exciting growth stories remain elsewhere.

• India has surpassed 500 million players and is set to become a nearly $2 billion market by 2030, with player spending growing at a 5-year CAGR of 11.2%. It is the fastest growing market we track.

• Despite geopolitical instability, MENA-3 (KSA, UAE, EGY) is set to remain the second fastest growing region by revenue behind India, with player spending set to reach $3 billion in 2030. Annual ARPU in MENA-3 is set to increase by $10 over the next 5 years.

• Thailand, the Philippines and Indonesia will be the fastest growing markets in Southeast Asia, with Thailand on track to reach the $2 billion player spending milestone next year and Indonesia to reach $1.5 billion by 2030.

• Alongside India, Indonesia and Vietnam will see the fastest growth in players over our forecast period, with 144 million and 68 million players by 2030, respectively.

Game companies can now pursue a two-pronged strategy when it comes to Asia & MENA, targeting high ARPU segments in mature markets like China and East Asia while scaling up in emerging markets of India, Southeast Asia and MENA to reach a new demographic. Here are 5 key trends driving growth across Asia & MENA today:

1. The players split by gender will see females continue to rise, expanding the addressable player and payer base across Asia & MENA. Women now account for 42% of players in the region, up from 39.5% last year and surpassing the 40% threshold for the first time. Growth has been particularly notable in markets such as India and the MENA-3 which skewed 80% male 5 years ago and earlier, highlighting how gaming is becoming increasingly mainstream across gender.

2. Nintendo Switch 2 is driving console growth following official launches in Southeast Asia and MENA last year, alongside stronger-than-expected performance in Japan and China. Asia & MENA sales for Switch 2 are nearly 70% higher than the original Switch when launch aligned. Looking ahead, 2026 will be a stellar year thanks to the launch of Grand Theft Auto VI. However, we caution that increased pricing for console hardware may limit true mainstream adoption across the region.

3. Direct-to-consumer monetization is emerging as a major structural shift across Asia & MENA’s gaming ecosystem. Regulatory changes have enabled publishers to expand out-of-app monetization strategies, with more than 30% of players in Asia & MENA now preferring to transact outside of the game application itself. Over the next five years, we see publishers building deeper relationships with players as they bypass traditional walled gardens.

4. Growth across Asia & MENA is increasingly multi-dimensional – taking place in several gaming segments. Japan’s PC gaming market is continuing to surge and is expected to grow 8% this year. In China, mini games have become a significant growth segment, now accounting for nearly 20% of mobile game spending. In India, player spending on mobile games will surpass $1 billion in 2027, driven increasingly by spending outside the battle royale genre that has historically dominated the market but has since lost share to other genres.

5. Generative AI use in the video game industry has emerged as a polarizing topic globally, although player sentiment in Asia remains materially more positive than in Western markets. The majority of Asia based studios are already using AI tech and studios are increasingly reporting development efficiencies. However, player acceptance remains nuanced, with players generally more supportive of GenAI being used to assist development workflows rather than replacing core art assets or marketing content.

Publishers must move beyond a one-size-fits-all strategy and build market specific approaches that resonate with players. Other notable trends to watch include a shift to more transparent and player friendly monetization, increased consolidation around evergreen games (which Niko has published a recent whitepaper covering), a further rise in UGC tools, platforms and monetized experiences, and evolving youth digital restrictions impacting game platforms.

We also caution that currency fluctuations, rising memory prices, inflationary pressures, and geopolitical instability, including the 2026 Iran conflict, are exerting pressure on discretionary spending across gaming hardware, software, and services. While these factors are likely to slow hardware upgrade cycles and constrain spending growth among some consumers, Asia & MENA are still expected to outperform global market growth through 2030 as a larger secondary cohort of paying gamers begins to emerge across the regions.

Download the key takeaways by region via this form. Contact research@nikopartners.com for any questions about our research and service  or learn more about our Market Report Series covering 13 markets: China, India, East Asia (Japan, Korea), SEA (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam), and MENA-3 (Egypt, Saudi Arabia, UAE). 

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 154 domestic games and 4 import games on May 26, 2026. This is the fourth batch of games approved in 2026 and takes total approvals to 754 domestic games and 25 import games The domestic batch included 135 mobile games, 2 PC games and 17 cross platform games, while the import games list included 2 mobile games and 2 cross platform games. New games from Tencent, NetEase, 37 Interactive, Lilith Games, ByteDance and 4399 among others were approved. A total of 9 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN.

Why this matters: Niko Partners has seen a steady increase in the number of game approvals since last year, with 2026 approvals currently up 19% YTD. Notable games approved in this batch include Chasing Kaleidorider from Tencent, its 3D gacha RPG, 诡影藏锋 from NetEase, its currently unannounced Chinese wuxia game with melee combat and extraction mechanics, as well as Code: Atom from ByteDance, a new party game it has in development. We expect more than 2,300 video games to be approved this year.

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NetEase 520 gaming showcase focuses on evergreen games

NetEase Games showcased more than 40 titles during its annual 520 gaming conference on May 20. Only four new games were formally introduced, while the majority of the conference was focused on updates to the firms portfolio of evergreen games. Several highly anticipated projects, including Ananta and the historical single player title Blood Message, were absent from the showcase alongside multiple unannounced code name projects. The restrained rollout suggests NetEase is becoming more selective with reveal timing and public pipeline management amid rising development costs and longer production cycles.

Why this matters: The event’s most notable takeaway was arguably the company’s increasingly disciplined strategic focus on existing evergreen games, rather than the number of new game announcements themselves. The broader conference reinforced three core priorities increasingly shaping NetEase’s strategy. First, the company continues doubling down on evergreen live service operations, following operational optimizations that helped multiple flagship games achieve record revenue over the past year. Second, NetEase is expanding its global multi-platform portfolio across console, PC, and mobile. Third, the company remains focused on identifying the next breakout IP capable of scaling beyond traditional genre boundaries. See Niko’s Evergreen Games Whitepaper for more information on that important topic.

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Xsolla and the Dubai Films and Games Commission partner to support MENA growth

Xsolla and the Dubai Films and Games Commission have signed a multi year strategic partnership aimed at accelerating game industry development across the Middle East and North Africa. Under the agreement, Xsolla will provide regional developers with access to its global commerce infrastructure, including direct to consumer storefront technology, payment systems spanning more than 200 geographies, and player engagement tools. The partnership will also establish a joint game studio accelerator program in Dubai alongside collaborative market intelligence initiatives focused on the regional games sector.

Why this matters: The agreement comes as the UAE continues positioning itself as a regional gaming and digital entertainment hub through increased investment in creative industries, esports, and technology infrastructure. Historically, one of the region’s largest structural gaps has been infrastructure around payments and publishing support. Last year, we partnered with Xsolla to write a whitepaper on the video game monetization landscape in MENA which you can download for free.

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Nexon and Tencent extend Dungeon & Fighter China partnership for 10 more years

Nexon has signed a new 10-year agreement with Tencent to continue publishing Dungeon & Fighter in China, reinforcing one of the most commercially successful partnerships in the global games industry. Originally launched in Korea in 2005 by Nexon subsidiary Neople, Dungeon & Fighter became one of the world’s highest grossing entertainment franchises, generating hundreds of millions of registered users globally. Tencent released the localized Chinese version in 2008, where the game rapidly evolved into one of the country’s defining PC online titles.

Why this matters: The renewal follows Nexon’s recent decision to transition Dungeon & Fighter Mobile in China from a dual management structure into a fully Tencent operated model. Previously, Neople managed core live service operations while Tencent handled publishing, localization, and marketing. Under the new arrangement, Tencent will assume full operational responsibility within China. Tencent’s deeper operational role across both titles is intended to streamline decision making, accelerate update cadence, and improve long term player engagement in China’s highly competitive live service environment.

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China reportedly blocks Nvidia RTX 5090D V2 imports

China has reportedly added Nvidia’s GeForce RTX 5090D V2 to a customs restriction list, effectively blocking imports of the high end gaming GPU. The RTX 5090D V2 was introduced in August 2025 as a modified version of the standard RTX 5090 designed to comply with US export controls. The card featured reduced memory capacity at 24GB and lower memory bandwidth compared to the global version, targeting China’s premium gaming market while attempting to remain within US export restriction guidelines. Despite the reduced specifications, reports suggest Chinese authorities still viewed the GPU as sufficiently capable for AI training workloads.

Why this matters: While Washington initially imposed export controls on advanced Nvidia and AMD hardware destined for China, Beijing is now reportedly encouraging domestic firms to prioritize locally developed alternatives instead. This policy direction has strengthened the position of Huawei and other Chinese semiconductor firms developing domestic AI accelerators and graphics hardware. For the games industry, the development reinforces expectations that ultra high end GPU adoption will remain constrained within China.

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TikTok youth account shutdown reshapes Indonesia’s esports discovery and viewership

TikTok has deactivated around 1.7 million Indonesian accounts belonging to users under 16 as part of compliance with PP TUNAS (Government Regulation No. 17/2025), enforced by the Ministry of Communication and Digital (Komdigi) and effective March 28, 2026. The policy has begun reshaping Indonesia’s esports ecosystem, with the loss of under-16 users reducing engagement across gaming content and contributing to declines in esports viewership, particularly for major mobile titles such as Mobile Legends: Bang Bang, Free Fire, and PUBG Mobile. The impact is notable given TikTok’s role as one of the major contributors to esports viewership and content discovery in Indonesia.

Why this matters: Indonesia’s enforcement of PP TUNAS highlights the structural risk of overreliance on a single social platform for esports growth, pushing teams and publishers toward more durable audience, talent, and community pipelines. The shift signals a broader regional move toward regulation-driven ecosystem maturation rather than viral-led scale. As TikTok’s influence on youth content discovery diminishes, younger audiences are expected to migrate toward platforms such as YouTube or spend more time playing games directly rather than consuming viral clips. The restriction also narrows informal pathways for young talent discovery, encouraging esports organizations to shift away from viral scouting toward structured models such as academies, community tournaments, and grassroots programs.

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Nintendo Switch China Eshop is officially shut down

The Nintendo Switch China Eshop has officially stopped all online services and shut down as of May 15, 2026. Tencent, which operates the Eshop in China, announced the shutdown in November 2024, after the agreement between itself and Nintendo ended. The Nintendo Switch officially entered the China market in December 2019 through a partnership with Tencent, with the console selling 1 million units in its first year. However, the China version was region locked and the Eshop only had access to less than 100 approved games, leading to the grey market version seeing higher sales.

Why this matters: The strict regulatory environment, requiring approvals for both hardware and software distribution in the country, limited the adoption of the China version Switch console, with the Nintendo Switch Lite never having an official launch in the country. Nintendo has not announced any partnership to officially launch the Nintendo Switch 2 in China, instead relying on grey market imports from markets such as Hong Kong.

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Tencent’s Delta Force set to receive UGC mode

Tencent appears to be preparing a major user generated content initiative for Delta Force, according to newly published recruitment listings from Tencent IEG. The postings indicate the company is building a full UGC ecosystem including creator tools, in game editors, content distribution systems, and monetization infrastructure. This suggests Tencent is positioning Delta Force not simply as a live service shooter, but as a long term content platform driven by player generated experiences.

Why this matters: Delta Force itself has scaled rapidly since launch in 2024. The title surpassed 50 million DAUs in China during March 2026, establishing it as one of the country’s largest shooter games. Tencent now appears intent on leveraging that player base to expand into creator driven content systems similar to trends already established in party games and sandbox platforms. The addition of AI assisted creation tools could further lower barriers for player generated content production, accelerating the transition of large live service games into persistent creator ecosystems.

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China exclusive Overwatch content sparks discontent overseas

Overwatch has received a lot of China exclusive content and promotions following the 2024 renewal of the publishing partnership between Blizzard Entertainment and NetEase. Recent China only offerings include 10 free customizable Mythic skins, a Naraka Bladepoint crossover, and a nationwide collaboration with Burger King featuring themed menus, merchandise, and in game rewards. The contrast with international regions has generated some backlash among global players. Blizzard live games and mobile executive Walter Kong acknowledged player frustration, stating that NetEase manages China specific publishing operations and local market initiatives, but admitted current events “fell short of the mark” for global audiences.

Why this matters: The situation highlights the increasing complexity of regional live service operations, particularly in China where publishers frequently rely on highly localized marketing partnerships, offline activations, and differentiated monetization incentives to drive engagement. Chinese players have become accustomed to region exclusive collaborations and generous reward structures as competition within the market intensifies. But uneven content distribution risks alienating global communities in highly social live service ecosystems where players directly compare rewards, events, and monetization treatment across regions.

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NetEase Q1 2026 earnings

NetEase reported Q1 2026 revenue of RMB 30.6 billion ($4.43 billion), up 6.1% YoY. Operating profit was RMB 12.7 billion ($1.83 billion), up 21.2% YoY with operating profit increasing 5 percentage points to 41%. Total revenue from NetEase’s Games and related Value-Added Services segment was RMB 25.7 billion ($3.73 billion), up 6.9% YoY, with online games revenue accounting for 97.5% of the segment. Gross profit from the games segment was RMB 19.2 billion ($2.79 billion), up 16.2% YoY. The increase in revenue was primarily attributable to higher net revenues from self-developed games, such as the Fantasy Westward Journey franchise and Where Winds Meet. The sharp increase in profit was also driven by a mix shift towards self developed titles with higher margins and lower commission fees.

NetEase says it saw sustained strong engagement and revenue performance across established titles, including the Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice and Where Winds Meet, supported by high-cadence content updates and gameplay innovation. NetEase is optimistic about future quarters, with several new titles in development, including Sea of Remnants and Ananta, expected to launch later in 2026.

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Bilibili reports Q1 2026 earnings

Chinese video and gaming platform Bilibili reported Q1 2026 revenue of RMB 7,47 billion ($1.08 billion), up 7% YoY. Net profit was RMB 202 million ($29.3 million, compared to a loss of RMB 10 million in the same period last year. While advertising revenue was the main driver of growth, up 30% YoY, mobile games revenue saw a 12% YoY decline to RMB 1.52 billion ($220 million). The decline was primarily due to the strong performance of Three Kingdoms: Conquer the World in Q1 2025 without a new comparable title in Q1 2026.

Across its platform, Bilibili reported 115.2 million average daily active users, up 8% YoY, and an 11 minute increase in average daily time spent on the platform. On the topic of the firm’s gaming business, Chairman and Chief Executive Chen Rui outlined three strategies on its earnings call: maintaining long-term operations, focusing on leading intellectual properties, and rejuvenating the brand. Specifically, Bilibili will launch several new Three Kingdoms themed titles this year and will actively explore the console game market, Chen noted.

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Nazara Technologies registers 13% annual revenue growth despite Q4 drag

Nazara Technologies, a listed Indian video game and game-adjacent company, recorded revenues of INR 18,289 million (around $190 million) for the financial year ended March 31 2026, a 13% year-over-year jump from its FY25. EBITDA rose 66% to INR 2,550 million (around $26.5 million), while profits grew 7% YoY to INR 670 million (around $7 million). Growth for the year was led by strong performance in its core game business, including the performance of acquired entities such as Curve Games and Fusebox games. However, the company also registered a 24% contraction in Q4 revenue, primarily due to the deconsolidation of esports and media events company Nodwin Gaming, in which it still remains an investor. We note the company remains committed to its acquisition-led growth strategy, with its most recent acquisition being that of Bluetile and Bestplay, a casual game developer and proprietary rewards platform, respectively.

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Konami announced that Silent Hill f has surpassed 2 million units sold worldwide as of April 22, 2026, including combined physical shipments and digital sales, following its launch on September 25, 2025 across PlayStation 5, Xbox Series X|S, and PC. The title, written by Ryukishi07 and set in a fog-covered Japanese town, follows protagonist Hinako Shimizu and has won and been nominated for multiple Game of the Year awards in Japan and internationally. Konami also confirmed that the Silent Hill 2 remake has exceeded 6 million cumulative players as of April 24, 2026, including sales and subscription-based users, supported by updated visuals, expanded exploration, and revised combat systems. The company additionally launched a 40% discount dual pack promotion featuring both titles to further drive engagement and sales.

Why this matters: Strong early sales of Silent Hill f alongside sustained engagement for the Silent Hill 2 remake highlight Konami’s successful revival of the franchise, demonstrating demand for premium horror titles across both new IP entries and remakes. This reinforces the growing commercial viability of high production value single player experiences in global and Asian markets, particularly when paired with cross title promotions and multiplatform distribution.

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Esports World Cup to relocate from Riyadh to Paris

The 2026 Esports World Cup will be relocated from Riyadh, Saudi Arabia, to Paris due to escalating instability in the Middle East. Organizers have informed stakeholders privately that Paris will host this summer’s edition. The 2026 tournament is currently scheduled to run from July through August with a total prize pool exceeding $75 million. The 2025 edition in Riyadh reportedly attracted more than 3 million attendees alongside over 2,500 players and team staff, underscoring the scale the event has reached within the global esports calendar.

Why this matters: The 2026 Iran War and heightened geopolitical tensions have had a notable impact on the region, with major travel disruptions and airline cancellations. These factors have complicated logistics for teams, publishers, sponsors, and international attendees, forcing the Esports Foundation to reconsider where the event will be held. While long term plans for the Esports World Cup had already envisioned expansion into multiple host cities globally, this last-minute change demonstrates how geopolitical instability can significantly impact live event planning.

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Tencent reports Q1 2026 earnings with strong international games growth

Tencent reported Q1 2026 revenue of RMB 196.5 billion ($28.39 billion), up 9.1% YoY. Net profit was RMB 59.4 billion ($8.58 billion), up 19% YoY and representing a profit margin of 30%. Tencent’s online games revenue was RMB 64.2 billion ($9.28 billion), up 7.9% YoY. When accounting for third party distribution and social networks, we estimate that Tencent’s total gaming revenue was RMB 74.7 billion ($10.8 billion), up 6.8% YoY. Revenue from online domestic games was RMB 45.4 billion ($6.56 billion), up 5.7% YoY. International online games revenue was RMB 18.8 billion ($2.72 billion), up 13.3% YoY and accounting for 25.2% of total online games revenue. Tencent highlighted that several of its evergreen titles achieved record quarterly gross receipts, including Honor of Kings, Peacekeeper Elite, and Delta Force.

In the mini game segment, Tencent said it saw increased spend on marketing after it introduced an instant play advertising format, enabling users to play the game within the ad without needing a redirection, which reduces friction in the new user acquisition process. Tencent also mentioned its Hy3 AI LLM that it is using for game development and operational efficiency. It is also leveraging AI to accelerate 3D asset production and animation, enrich player experiences with smarter NPCs, and deliver better graphics via advanced rendering techniques.

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Strong Signals from Vietnam’s Growing Video Game Market - Niko Knowledge Brief

Vietnam is Southeast Asia’s second-largest gaming market by player count, according to Niko Partners’ 2026 Market Model. The country had 57 million gamers and generated $678 million in revenue in 2025, with revenue projected to climb to $788 million and the player base to reach 68 million by 2030. As more game companies have their eyes set on Vietnam, this Knowledge Brief examines the market’s changing landscape, shifting player trends, and the key developments driving the industry forward.

Use code NIKOGAMEVERSE at checkout to download the report for free.

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Arc Raiders tops 16 million sales prior to official China launch

Arc Raiders has surpassed 16 million units sold globally, according to South Korean publisher Nexon, making it the company’s most successful premium release to date. Developed by Embark Studios, the title added another 4.6 million units during Q1 2026 alone. Nexon also highlighted strong engagement metrics, stating that more than half of active players spent over 100 hours in the game during the quarter, contributing to a cumulative 1.5 billion hours played. Nexon confirmed that Arc Raiders has secured an ISBN license for the Chinese market. Multiple closed beta tests are now planned ahead of launch, with Tencent handling publishing operations in the region.

Why this matters: Arc Raiders has emerged as a successful live service shooter over the past year and Nexon is looking to turn it into an evergreen game. Notably, Arc Raiders already has a presence in China via Steam, indicating strong demand for the official version. However, we do note that global engagement with the game has declined in 2026 with Chinese community discussion increasingly pointing towards a shift towards PvP emphasis in-game as a reason for why some have stopped playing. Nexon’s goal ahead of the China launch will be to work with Tencent on understanding how best to appeal to the domestic audience. Tencent and Nexon have had a long relationship in regard to China publishing with development of the Chinese version of Dungeon & Fighter Mobile recently being transferred to Tencent.

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Capcom sees strong unit sale growth in Asia & MENA

Capcom reported its FY2025/6 earnings last week where it confirmed more than 59 million units of software were sold over the past year, with Resident Evil Requiem (6.9 million) becoming the fastest selling game in franchise history. One notable highlight of the report was the growth of unit sales in Asia and MENA over the past 5 years. In Asia, 13.49 million games were sold, a 246.8% increase compared to 5 years ago. In MENA, nearly 1 million games were sold, a 276.0% increase compared to 5 years ago. Note that Asia does not include Japan, which is a separate region for Capcom.

Why this matters: MENA and Asia have emerged as the fastest growing regions for Capcom, ahead of South America (148.2%), Oceania (100.0%), and Africa (140.0%). Asia is now the #2 region behind North America (17.28 million) and ahead of Japan (13.40 million). In Asia, the increase has primarily been driven by an increased focus on localization and PC expansion, which has led to higher sales in China. In MENA, the increase has primarily been driven by increased localization including Arabic language support. Capcom has built a strong presence and reputation in the region thanks to strong localization support, which is why players were surprisingly forgiving after discovering translation mistakes in Resident Evil Requiem.

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Sony will no longer publish its single-player games on PC

Sony Interactive Entertainment is reportedly shifting its platform strategy by keeping future first party narrative driven single player titles exclusive to PlayStation hardware, according to comments made by PlayStation Studios CEO Hermen Hulst during an internal town hall meeting. The report follows earlier Bloomberg coverage stating that Sony had become concerned about the commercial performance of PlayStation titles on PC and the potential long-term impact on console hardware positioning. According to those earlier reports, internal discussions suggested that simultaneous or broader PC releases risk weakening the PlayStation ecosystem and could negatively affect sales of future PlayStation consoles.

Why this matters: Sony originally pitched its PC expansion as a way to drive repeat sales of its first party games off console, and to expand into PC centric markets such as China and South Korea. While the company still plans to release its live service games on PC to reach a broader audience, the exclusive approach to its single-player titles will require gamers to purchase a PS5 if they wish to play them. Sony’s PC strategy delivered mixed results as a result of an uneven pricing strategy, lack of broader localization, and backlash to forced PSN integration in the early years. With rising hardware and subscription costs, Sony may end up forgoing expansion in emerging markets to protect its core console business.

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Snowbreak: Containment Zone relaunches in China with content adjustments

Snowbreak: Containment Zone relaunched in China on May 8 after undergoing nearly two months of maintenance following controversy surrounding a promotional collaboration with China Post in February 2026. The title, developed by Seasun Games, is an 18+ anime style shooter known for stylized female character designs and fanservice oriented presentation. The backlash emerged after critics questioned the appropriateness of a government affiliated institution partnering with a game perceived by some as overly sexualized. As scrutiny intensified, China Post removed related promotional materials, while Seasun Games announced indefinite server maintenance.

Why this matters: Although regulators did not publicly announce enforcement measures, the sequence closely resembled previous Chinese content rectification cases involving games that potentially crossed regulatory boundaries around adult or obscene material. Following the relaunch, players identified substantial content changes. Several character models and illustrations were modified to appear more conservative, with additional clothing added to some designs. Community response has been sharply divided. Some players welcomed the return of the game regardless of the changes, while others criticized the removal of features and dilution of the title’s original identity.

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South Korea PC bang industry escalates dispute with Riot Games over fees and access restrictions

South Korea’s PC bang industry has initiated collective action against Riot Games, accusing it of unfair practices including a ~15% increase in premium service fees and restrictions on game access for venues not subscribing to its paid program. The Korea Federation of Micro Enterprises and industry groups held a press conference at the National Assembly on May 18, joined by lawmaker Oh Se-hee, condemning what they described as forced monetization policies and abuse of a dominant market position affecting around 7,000 operators.

Why this matters: This dispute highlights rising tensions between platform holders and offline distribution channels in Asia, where monetization control over free-to-play titles is increasingly extending into physical venues. Participants warned the measures could threaten small business viability and trigger government reviews into unfair contract terms and practices. Niko clients should monitor regulatory responses, as outcomes could reshape PC bang economics and set precedents for platform licensing models in other markets.

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MiHoYo’s AI companion in Honkai: Star Rail surpasses 60m conversations in first week

miHoYo revealed that players in China generated more than 60 million conversations with Pom Pom’s Assist, the new AI chatbot system integrated into Honkai: Star Rail, during its first week of operation. The LLM powered feature allows players to interact with the in-game character Pom Pom for gameplay guidance, character progression advice, team composition recommendations, and weekly rewards. miHoYo also disclosed that one player interacted with the system 1,379 times in a single day.

Why this matters: Pom Pom’s Assist is positioned as an officially verified in game knowledge layer integrated directly into the user experience. The LLM also allows players to chat about trivia, lore questions, memes, and other interactive conversational content. The positive reception is notable given broader skepticism toward AI within gaming communities, where players have frequently criticized publishers for using AI generated art, writing, or voice content perceived as low effort or inauthentic. Pom Pom’s popularity suggests player resistance in China may be less about AI itself and more about where and how the technology is applied.

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Savvy Games Group and Roblox have announced the signing of an MoU, with the express goal of expanding Saudi Arabia’s game developer ecosystem. According to the press release, Savvy will help Roblox set up its presence in the region, whilst Roblox will use Savvy’s relations to support local creators, create workshops, training sessions, give direct access to tools and resources, and even collaborate with the Ministry of Education.

Why this matters: This news comes just months after Saudi Arabia and other Arab countries in the region temporarily banned Roblox. After working with the local regulator, Roblox Corp is operating in Saudi again but with stronger Arabic language moderation tools. This deal is mutually beneficial as it helps Roblox rehabilitate its image in the region whilst building stronger networks for its players and creators in the region.

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Strong Signals from Vietnam’s Growing Video Game Market - Niko Knowledge Brief

Vietnam is Southeast Asia’s second-largest gaming market by player count, according to Niko Partners’ 2026 Market Model. The country had 57 million gamers and generated $678 million in revenue in 2025, with revenue projected to climb to $788 million and the player base to reach 68 million by 2030. As more game companies have their eyes set on Vietnam, this Knowledge Brief examines the market’s changing landscape, shifting player trends, and the key developments driving the industry forward.

Use code NIKOGAMEVERSE at checkout to download the report for free.

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Sony reports record profits thanks to PS5

Sony reported stable full year performance for its Game & Network Services segment in fiscal 2025, with revenue reaching ¥4.7 trillion ($29.9 billion), up 0.3% year over year, while operating income rose 12% to a record ¥463.3 billion ($2.9 billion). Profit growth was driven by higher software and network sales alongside favorable foreign exchange conditions, offsetting substantial impairment charges tied to Bungie. However, hardware performance continued to weaken as the PlayStation 5 entered a mature lifecycle stage.

Why this matters: The PlayStation 5 is entering the latter stage of its lifecycle, with Sony confirming that it is ramping up investment on its next generation console this fiscal year. The recent price increase is expected to contribute to another decline in hardware unit sales this year, but profitability is expected to rise significantly thanks to strong software and services sales. Sony has been able to break the cyclical profit / loss cycle of the console games industry by further monetizing its userbase with add on content, subscriptions, and mid gen hardware refreshes.

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Microsoft looking into bringing Xbox Game Pass to China

Microsoft appears to be preparing an expansion of Xbox Game Pass into China, according to references discovered in a recent Xbox PC app update. Microsoft currently sells Xbox hardware in China and was the first console manufacturer to officially enter the market following the end of China’s 14-year console ban in 2014 with the launch of Xbox One. However, Xbox Game Pass has never officially launched in the country due to regulatory complications around game approvals and content licensing.

Why this matters: Gamers in China can purchase an Xbox Game Pass subscription via the Hong Kong store, but uptake is low and this method typically requires a VPN. A China specific version of Game Pass would not be able to include the large library of games the subscription is known for, because they do not have licenses to operate in the country. The China version will likely be an extremely unique offering.

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PUBG Mobile removes controversial item over insensitive name

Krafton issued an apology and removed an item from PUBG Mobile this week after players from the Middle East and other Islamic countries filed complaints. The item removed from the game was the “Hand of the Almighty” card that allowed players to temporarily protect themselves from enemy fire. The card also featured an image of a divine like hand descending from the clouds.

Why this matters: When translated into Arabic, the in-game term becomes “Al-Jabbar”, one of the names used to refer to God in Islam. Players argued that naming the item after a phrase commonly associated with Allah in Islamic theology was inappropriate. The swift response has received praise from players, although we note that some pointed out that PUBG Mobile has had a history of adding offending content over the past decade, which shows how important content reviews are when localizing for multiple languages and regions.

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Valorant Mobile surpasses 10m DAUs in China

Valorant Mobile has surpassed 10 million DAUs in China, marking a major milestone less than a year after its August 19, 2025 launch. The title is published through the partnership between Riot Games and Tencent, though an international release has yet to be announced. Tencent previously disclosed that Valorant Mobile and the PC version of Valorant exceeded a combined 50 million MAUs in China by the end of 2025, with the PC version alone surpassing 2 million DAUs.

Why this matters: Rather than adopting a unified cross platform ecosystem, Riot and Tencent pursued a dual platform strategy, positioning PC and mobile as complementary but distinct experiences. This approach appears to have allowed both versions to coexist without significant audience cannibalization. The growth also reflects broader momentum in China’s shooter segment. Over the past year, titles such as Valorant, Delta Force, and Counter Strike 2 have strengthened alongside established leaders such as Peacekeeper Elite and CrossFire.

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Chinese court rules on account reselling

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

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

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Pokémon Center to open in Bangkok, expected to be the largest branch outside Japan

Thailand is preparing to welcome its first-ever Pokémon Center, “Pokémon Center BANGKOK,” which will open at centralworld in Bangkok within 2026. The project is a collaboration between Pokémon (Thailand) Co., Ltd. and Central Pattana Public Company Limited. Pokémon Center BANGKOK will serve as a lifestyle and experience destination for Pokémon fans, offering official merchandise, trading card game activities, special events, and brand experiences.

Why this matters: The Bangkok branch is planned to become the largest Pokémon Center outside Japan and the third overseas branch after Singapore and Taipei. The collaboration is expected to attract local and international visitors, strengthen Bangkok’s role as a regional video games IP-based tourism destination, and support video games ecosystem in the long term.

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Roblox commits to Indonesia’s PP Tunas child safety rules

Roblox has committed to complying with Indonesia’s Government Regulation No. 17/2025 (PP Tunas) by strengthening child safety measures following discussions with the Communications and Digital Ministry (Komdigi), as the regulation extends child protection requirements to gaming platforms alongside social media. The platform will implement mandatory age verification, with unverified users, including those over 16 who do not complete facial verification, losing access to chat, and other direct communication features.

Why this matters: Indonesia’s enforcement of PP Tunas signals a global shift toward treating game platforms like social media in child safety regulation, increasing compliance costs and accelerating the need for age verification, content gating, and parental control systems across major games markets.

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Japan’s GGL esports community surpasses 300 community tournaments

Japan‑based esports community GGL (Good Game Lovers), operated by RATEL and the GGL Operating Committee, announced that it has surpassed 300 cumulative community tournament events since launching in 2019. As of April 2026, the platform has recorded 28,406 cumulative player entries, with its tournament broadcasts and related videos generating more than 2 million views annually. GGL has organized events across a wide range of titles, including Apex Legends, Valorant, League of Legends, GeoGuessr, and Zwift, reflecting a multi‑genre approach to community esports.

Why this matters: GGL’s scale shows how diversified, community‑first tournament models in Japan can reach meaningful engagement without top‑tier publisher backing. The organization attributes its growth to repeat participation and a sustainable model, while building traction without reliance on a single dominant title. For publishers and sponsors, this highlights growing opportunities in long‑tail esports and offline community activations beyond marquee titles.

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SNK to launch studio headed by former Tekken producer Katsuhiro Harada

SNK Corporation has announced that it will launch a new game development studio in Japan, VS Studio SNK Co, which will be headed by former Tekken series director and producer, Katsuhiro Harada. Details are sparse as of now, as no projects have been announced or teased, though one would assume that with Mr. Harada and SNK’s fighting game pedigree, it is likely for any title to at the very least include fighting game elements.

Why this matters: Since their acquisition by Saudi Arabia’s MiSK Foundation, SNK has been pushing hard to reach more mainstream audiences. However, their latest attempt, Fatal Fury: City of Wolves, which had a huge marketing campaign and featured guest appearances from DJ Salvatore Ganacci and Cristiano Ronaldo, failed to meet sales expectations. Bringing on the former Tekken producer could allow SNK to develop a more attractive title.

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

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

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

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

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Sony looks to combat piracy with one time license check

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

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

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Tencent increases stake in Black Myth: Wukong developer

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

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

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NC signs marketing partnership with Roblox Korea

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

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

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Pearl Abyss divests from CCP Games in management buyout

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

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

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Zenless Zone Zero to release on Steam

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

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

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Chinese court rules on account reselling

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

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

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Wemade settles royalty dispute over MIR IP

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

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

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ChinaJoy sees strong profit growth ahead of 2026 event

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

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

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

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

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

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HarmonyOS reaches 55 million users in China

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

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

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

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

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

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

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

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

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

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

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

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

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

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RELATED: Capcom revises forecast upwards after new games find success

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

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

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

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

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

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India notifies gaming rules, sets up Online Gaming Authority

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

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

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ByteDance still has 18 titles in development despite selling Moonton

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

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

Link to original article (Chinese) →

AR battle royale experiences revitalize underutilized malls in China

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

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

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Wuthering Waves expands IP collaboration strategy

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

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

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Huawei leads China smartphone market despite overall market decline

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

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

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Lenovo Legion Go S PC Gaming Handheld sees price hike

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

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

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MPL Indonesia reframes league as creative playground for local IP integration

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

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

Link to original article (Indonesian) →

Turkiye enacts first law regulating game platforms like Steam

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

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

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Events

Vietnam GameVerse 2026

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

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

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

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

Link to original article (Chinese) →

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

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

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

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

Read the blog post →

Niko Partners at Vietnam GameVerse

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

Meet us in Ho Chi Minh City →

Phantom Blade Zero developer rejects GenAI usage

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

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

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New livestreaming regulations impact tipping for minors

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

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

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

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

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

Link to original article (Japanese) →

Qualcomm and NetEase expand Windows on ARM gaming

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

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

Link to original article →

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

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

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

Link to original article (Korean) →

Destiny: Rising overhaul signals shift away from aggressive monetization

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

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

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Jagex targets APAC expansion with Runescape: Dragonwilds

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

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

Link to original article →

Sanrio and Toei announce dedicated gaming brands

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

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

Link to original article →

Events

Vietnam GameVerse 2026

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

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

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

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

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

What is an Evergreen Game?

Niko Partners defines an evergreen game by:

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

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

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

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

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

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

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

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

TENCENT:

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

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

SEA, LTD:

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

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

NEXON:

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

TAKE TWO:

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

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

Outlook for evergreen games

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

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

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

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

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

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

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

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

Download the bulletin →

Niko Partners at India Gaming Show

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

Meet us in Chennai →

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

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

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

Link to original article (Indonesian) →

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

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

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

Link to original article →

South Korean game publishers push back against YouTuber misinformation

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

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

Link to original article (Korean) →

Malaysian Football League clubs officially join eFootball via Konami partnership

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

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

Link to original article →

China court rejects case arguing for matchmaking transparency from game developers

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

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

Link to original article (Chinese) →

Xiaomi raises its smartphone prices in China

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

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

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Shanghai government unveils 10 measures to support gaming and esports industry

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

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

Link to original article (Chinese) →

Snail Games faces Nasdaq compliance risk amid heavy losses

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

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

Link to original article (Chinese) →

Moonton investigates Mobile Legends cheat network with Indonesian police support

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

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

Link to original article (Indonesian) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

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

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

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

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

Read the highlights →

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

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

Read the highlights →

Indonesia Game Rating System Heavily Criticized on its Rollout

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

Read the blog post →

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

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

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

Link to original article (Indonesian) →

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

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

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

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

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

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

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UAE Ministry of Culture opens fifth cycle of National Grant program

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

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

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Super Mario Galaxy Movie opens to $372m globally

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

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

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Nexon to publish Overwatch in Korea through partnership with Blizzard

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

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

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Logitech apologizes for insensitive Douyin ad

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

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

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Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

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

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Contact us to set up a meeting →

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

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

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

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

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

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

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

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

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

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

Source: instagram.com/gameratingid

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

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

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

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

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

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

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

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

Screenshots from IGRS website showing game ratings of select games

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

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

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

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

Link to original article (Chinese) →

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

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

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

Link to original article (Japanese) →

NetEase sees backlash to AI generated promotional materials overseas

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

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

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

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

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

Link to original article (Arabic) →

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

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

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

Link to original article (Chinese) →

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

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

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

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Tencent introduces pay in installments for Honor of Kings character skins

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

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

Link to original article (Chinese) →

Chinese language users on Steam reach 50% in February 2026

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

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

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

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

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

Link to original article (Indonesian) →

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

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

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

Link to original article (Vietnamese) →

Events

India Gaming Show

April 17-19, 2026
Chennai, India

Attendee: Narinder Kapur

Vietnam GameVerse 2026

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

Attendees: Linh Diep, Hung Tang

GamesBeat Summit

May 18-19, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Contact us to set up a meeting →

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

Read the highlights →

Tencent reports CY2025 earnings

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

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

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

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Memory shortage to pressure Korean and Japanese game companies

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

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

Link to original article (Korean) →

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

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

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

Link to original article (Indonesian) →

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

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

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

Link to original article (Chinese) →

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

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

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

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Universal Beijing Resort recreates Genshin Impact‘s Mondstadt

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

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

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Chinese voice acting industry pushes back on AI voice usage

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

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

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China elevates video games in 15th five-year plan

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

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

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

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

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

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