Gamescom Asia x Thailand Game Show 2026 attracted 219,546 attendees from 113 countries, reinforcing Thailand’s growing position as a regional hub for the video game industry. Held from October 29 to November 1 at Bangkok’s Queen Sirikit National Convention Centre, the four-day event occupied 38,519 square meters and was described by organizers as its most international edition to date. The event also attracted 720 media representatives, influencers and content creators, while livestreams and digital content generated nearly 34 million views across platforms, extending its reach beyond physical attendance.

The Niko Partners Senior Leadership Team, together with Niko’s Thailand Analyst, Nina Kitkrua, attended the event. We also launched our joint white paper with Xsolla: “Waking the Southeast Asian Giants: Players, Payments, and Localization in Three of Asia’s Most Exciting Markets“, which examines the growing significance of Indonesia, Thailand, and Vietnam, three of the key Southeast Asian markets tracked by Niko. Thank you to everyone who joined the panel and stopped for a chat throughout the event!

Why this matters: Exhibitor participation increased this year with 335 exhibitors and pavilions compared with 294 in 2025, representing 14% growth. International participants accounted for 64% of exhibitors, with representation from 29 countries, including 20 national pavilions and industry delegations. The event’s business segment attracted 6,923 visitors from 78 countries, representing 24% growth from 5,590 in 2025, with more than half traveling from outside Thailand. Attendees had access to 582 playable games, including 347 indie titles, which represented approximately 60% of the games showcased.

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Niko Partners goes to Montreal International Game Summit

Niko Partners is heading to Montreal for MIGS on November 10-11. Niko’s Senior Analyst Alexander Champlin will share insights on the next wave of gaming growth across Africa, Latin America, and the Middle East on a panel titled “International Growth Markets”. See you there if you’re attending too!

Meet us there →

MENA Sees Growth Through Localization, Increased spending, Esports

The MENA-3 markets (Saudi Arabia, UAE, and Egypt) generated $2.15 billion in gaming revenue in 2025 and are expected to reach $2.94 billion by 2030. Key trends shaping the market include strong government support for video games and esports, higher spending potentials through rapid ARPU growth, rising importance of culturally relevant localization.

As MENA’s player base matures and spending becomes increasingly concentrated among high-value users, publishers will need more targeted engagement and monetization strategies for success in the region. Learn more key takeaways from MENA-3 Player Behavior and Market Insights Reports here.

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Waking Southeast Asian Giants - New white paper from Niko Partners and Xsolla

Southeast Asia is on track to become a $7 billion video games market by 2030, fueled by nearly 300M gamers and strong growth across the region. The region presents new opportunities for international video game developers looking to expand their reach and connect with more players.

Niko Partners and Xsolla team up to explore of Southeast Asia’s rising video games markets: Indonesia, Thailand, and Vietnam. Our new white paper explores the key opportunities, payment preferences, and strategies for success in these high-potential markets.

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China approves 195 video games in October 2026

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 183 domestic games and 12 import games on October 28, 2026. This is the ninth batch of games approved in 2026 and takes total approvals to 1,707 domestic games and 58 import games. The domestic batch included 166 mobile games, 2 PC games, 1 console game, and 14 cross-platform games, while the import games list included 7 mobile game, 2 PC games, and 3 cross platform game. A total of 10 games were included on the updated ISBN list where publishers can request a name change, publisher change, or additional platform for an existing ISBN.

Key publishers that received licenses this month include Tencent, NetEase, 37 Interactive, Lingxi Interactive, Zlongame, Sunborn, Kingnet, 4399, and Yoozoo games among others. One approval was for a new entry in Sunborn’s Girls Frontline franchise title Girls’ Frontline Blue Butterfly Covenant, a PVE co-op shooter. Happy Elements also received a license for StarToU, an idol management game with rhythm elements. The most notable import game was Odin: Valhalla Rising from Lionheart Games, a subsidiary of Kakao Games.

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Garena launches localized Free Fire India more than four years after the game’s ban

Garena has relaunched Free Fire India more than four years after the game’s ban over national security concerns, launching it as a standalone title on Android and iOS. The localized version includes India-specific content, parental controls, playtime limits, spending caps, and player data hosting on servers located in India, while Garena said it worked with Indian authorities and incorporated regulatory feedback before launch. Garena also confirmed that Free Fire MAX, which remained available during the ban period, will continue operating alongside Free Fire India, with players able to use the same accounts, play together, and participate in shared events.

Why this matters: According to Sensor Tower data reviewed by TechCrunch, the Free Fire franchise recorded approximately 77.4 million monthly active users in India in June, compared with 20.8 million for Krafton’s Battlegrounds Mobile India (BGMI). India’s approval of a localized version of Free Fire highlights the growing importance of market-specific compliance, data localization, and player safety features for publishers operating in the country. The game’s return is likely to intensify competition in India’s mobile battle royale segment while creating new opportunities across esports, creator ecosystems, and live service monetization.

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Tencent and NetEase remove Mbappe promotional content following controversial comments

Chinese game publishers Tencent and NetEase have announced measures to remove or suspend promotional content featuring French footballer Kylian Mbappe following controversy over comments he made about China. The incident highlights the reputational and commercial risks associated with using international athletes as promotional partners in the Chinese gaming market. The controversy began after a video circulated online showing Mbappe discussing an internet meme that depicted his face superimposed onto an image of Mao Zedong. According to Australian broadcaster ABC, Mbappe referred to Mao as a “Chinese dictator” while explaining the image, prompting criticism from Chinese audiences.

Why this matters: While Mbappe issued an apology, several Chinese sponsors reportedly ended their partnerships with Mbappe following the controversy. The incident shows how celebrity marketing and status is viewed in China and how backlash can lead to both bottom up and top down pressure for companies and sponsors to take action, with this case leading to EA and Konami removing promotional campaigns and live service content. The situation also demonstrates how events outside the gaming industry can directly affect game operations, marketing strategies and relationships with international sports personalities.

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KCC fines Google and Apple under South Korea’s anti-forced in-app payment law

Korea’s Korea Communications Commission (KCC) imposed fines of KRW 42.9 billion ($30.6 million) on Google and KRW 20.81 billion ($14.9 million) on Apple for violating the Telecommunications Business Act through practices that restricted developers’ payment options. The case marks the first enforcement action under Korea’s law prohibiting app marketplace operators from forcing specific in-app payment methods. Although both companies formally permitted third-party payments, the KCC found they effectively discouraged their use through fees of up to 26%, procedural restrictions, and limitations on functionality.

Why this matters: The KCC ordered both companies to support alternative payment options, including external payment links within apps, adjust third-party payment fees, revise app review procedures, submit implementation plans within one month, and complete service improvements within three months; no criminal referrals were issued. Korea continues to lead global efforts to regulate app store payment practices, and this first enforcement action under the anti-forced in-app payment law demonstrates regulators’ willingness to challenge platform policies that indirectly discourage alternative payment systems.

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Phantom Blade Zero sells 4 million copies in three days

Chinese developer S-Game has confirmed that Phantom Blade Zero has sold more than 4 million copies in its first 72 hours, while also reaching 834k concurrent players on Steam, making it one of the most successful game launches this year. Niko Partners estimates that over 3 million units were sold in China, with the title ranking at #3 by viewers on our China Games & Livestreaming Tracker, behind Honor of Kings and League of Legends. S-Game and PlayStation have been heavily promoting the game in China, with marketing efforts including roadshows, brand partnerships and TV commercials.

Why this matters: Like Black Myth: Wukong, the strong launch of Phantom Blade Zero is another example of a Chinese developer finding success in the AAA premium game space with a new IP. It also shows how China has developed as a serious market for AAA games with multiple premium titles becoming million sellers over the past few years. S-Game previously created Rainblood and Phantom Blade titles, which are set in the same universe as Phantom Blade Zero.

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Indonesia plans expanded digital tax collection framework with potential implications for digital games

Indonesia plans to implement a digital tax collection framework beginning November 9, 2026, under which state-owned and private banks, fintech firms, and digital marketplaces would participate in tax collection and remittance. According to Hashim Djojohadikusumo, Chair of the Advisory Board of the Indonesian Chamber of Commerce and Industry (Kadin), who is also the brother of Indonesia’s current president, the initiative aims to improve collection of taxes from digital transactions that have not previously been fully captured. The policy is motivated by Indonesia’s state revenue ratio of approximately 12% of GDP, including tax, excise, and non-tax revenue, which is lower than that of several regional peers. Digital games and in-game content are among the digital products that may fall within Indonesia’s broader digital taxation framework.

Why this matters: Indonesia’s expanded digital tax collection framework could increase compliance requirements for game publishers, platform operators, and payment providers serving the market. The country has been increasing regulations affecting the games industry in the past few years, such as through the Electronic System Regulations (PSE) and Indonesia Games Rating System (IGRS), both of which face issues and criticisms in the implementation.

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Valorant surpasses 100 million registered users in China

Riot Games has announced that Valorant surpassed 100 million registered users on its Chinese servers. The milestone builds on strong growth across the Valorant franchise in China, where Tencent operates both the PC and mobile versions. Tencent previously disclosed that the two games had exceeded a combined 50 million monthly active users (MAUs) by the end of 2025. The PC version surpassed 2 million daily active users (DAUs), while Valorant Mobile exceeded 10 million DAUs, highlighting the franchise’s ability to reach audiences across multiple platforms.

Why this matters: The achievement also follows China’s hosting of VALORANT Champions, reinforcing the country’s growing importance within Riot Games’ global esports ecosystem. Although Chinese teams have faced challenges achieving consistent international results, domestic player engagement and interest in the franchise remain strong. According to our China Games and Livestreaming Tracker, Valorant PC was the #5 most viewed title in the past month while the mobile version charted at #35. The combination of competitive gameplay, localized operations, esports investment and crossplatform brand recognition has helped Tencent and Riot reach a broader audience in China.

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Dragon Ranger Gaming to develop Esports Hotel complex in Beijing

Chinese esports organization Dragon Ranger Gaming (DRG) has signed an agreement to develop an esports hotel complex in Beijing’s Shijingshan District, as local authorities continue investing in gaming and esports infrastructure. The agreement was formalized on October 24 during the opening ceremony of the 2026 Jingxi Esports Festival, reflecting efforts to expand the district’s esports ecosystem and attract industry investment. Shijingshan District has emerged as a growing gaming and esports hub, hosting 135 gaming and esports-related companies generating more than RMB 24.81 billion ($3.72 billion) in combined annual revenue.

Why this matters: Local authorities have introduced dedicated industry support measures to attract businesses and strengthen the sector’s development. The opening of the Shougang Park Esports Center in March 2026 further expanded the district’s infrastructure, providing a specialized venue for competitive gaming events and related activities. Founded in 2016, DRG relocated to Shijingshan District in June 2025 as part of the area’s broader industry development strategy. The organization operates competitive teams across multiple titles, including Honor of Kings, VALORANT, Delta Force, Naraka: Bladepoint and The Finals.

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Tencent to shut down Pokémon Unite

Tencent’s TiMi Studio Group and The Pokémon Company have announced that Pokémon Unite will shut down globally in 2027, ending operations for the free to play MOBA game after more than five years. The Chinese mainland version will close on January 28, 2027, while services in other markets will end on March 23, 2027. Co-developed by Tencent and The Pokémon Company, Pokémon Unite launched on Nintendo Switch in July 2021, followed by mobile devices in September 2021. The game subsequently launched in mainland China in November 2024. It became a notable example of Tencent’s international expansion strategy, combining a globally recognized Japanese intellectual property with the company’s expertise in competitive multiplayer and mobile game development.

Why this matters: Pokémon Unite exceeded 70 million downloads across platforms within its first year and surpassed 200 million cumulative downloads worldwide by July 2025, according to its fourth-anniversary announcement. Niko Partners estimates the title grossed over $150 million across both platforms, but that monthly revenue had recently fallen under $1 million per month. While an official reason for the shut down was not disclosed, we believe the games commercial performance and a lack of renewal for the license were the main contributors. The closure also follows the termination of online services for Tencent’s officially licensed mainland Chinese Nintendo Switch on May 15, 2026, marking another change in the companies’ longstanding relationship.

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GPU prices continue to soar in China

Prices of high-end consumer GPUs have risen sharply in China, driven by supply constraints linked to growing demand for AI data center infrastructure. Retailers report that price increases have accelerated in recent weeks, with shortages of components used in both consumer and enterprise hardware contributing to reduced GPU availability. Nvidia’s RTX 5060 is reportedly selling for approximately RMB 4,000 ($600), while the RTX 5070 is priced around RMB 8,000 ($1,200), with some variants exceeding RMB 9,000 ($1,350). Higher-end models have experienced particularly significant increases, with the RTX 5090D reaching approximately RMB 30,000 ($4,500) and the banned RTX 5090 exceeding RMB 50,000 ($7,500).

Why this matters: We note the RTX 5060 was available for RMB 2,000 ($300) earlier this year before increasing to RMB 3,000 in the past month and now reaching RMB 4,000 this week. Local merchants attribute the increases to competition for components used in AI data centers, which has constrained consumer GPU production and shipments. Retailers expect high-end GPU prices to remain elevated or increase further in the near term, while lower-end discrete graphics cards and other PC components have experienced relatively limited price changes. Most hardcore gamers aspire to own an RTX 5060 or higher, highlighting the growing affordability challenge for mid to high end PC gaming and the need for developers to optimize games for older GPUs.

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Moonton and Qiddiya expand partnership for 5 more years

Prices of high-end consumer GPUs have risen sharply in China, driven by supply constraints linked to growing demand for AI data center infrastructure. Retailers report that price increases have accelerated in recent weeks, with shortages of components used in both consumer and enterprise hardware contributing to reduced GPU availability. Nvidia’s RTX 5060 is reportedly selling for approximately RMB 4,000 ($600), while the RTX 5070 is priced around RMB 8,000 ($1,200), with some variants exceeding RMB 9,000 ($1,350). Higher-end models have experienced particularly significant increases, with the RTX 5090D reaching approximately RMB 30,000 ($4,500) and the banned RTX 5090 exceeding RMB 50,000 ($7,500).

Why this matters: We note the RTX 5060 was available for RMB 2,000 ($300) earlier this year before increasing to RMB 3,000 in the past month and now reaching RMB 4,000 this week. Local merchants attribute the increases to competition for components used in AI data centers, which has constrained consumer GPU production and shipments. Retailers expect high-end GPU prices to remain elevated or increase further in the near term, while lower-end discrete graphics cards and other PC components have experienced relatively limited price changes. Most hardcore gamers aspire to own an RTX 5060 or higher, highlighting the growing affordability challenge for mid to high end PC gaming and the need for developers to optimize games for older GPUs.

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Events

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

G-Star

November 19-21, 2026
Busan, South Korea

Attendee: Shin Young Kim

Contact us to set up a meeting →

The MENA gaming market continues to demonstrate resilience and long-term potential. Despite ongoing geopolitical uncertainty, Egypt, Saudi Arabia, and the UAE (MENA-3) remain among the fastest-growing gaming markets tracked by Niko Partners, supported by strong government initiatives, rising disposable incomes, improving localization efforts, and growing participation from female gamers.

MENA Is One of Gaming’s Most Promising Growth Regions

MENA-3 continues to benefit from favorable market dynamics that are accelerating gaming adoption across the region. Government support for gaming and esports remains robust, while publishers are increasingly investing in localized content to better serve local audiences.

A key growth driver is the expanding and increasingly diverse player base. Female participation in gaming continues to rise, and consumer spending is steadily shifting toward entertainment and digital experiences. While geopolitical instability may create short-term challenges, long-term growth is expected to be driven by:

• Increased game localization and culturally relevant content

• More open and flexible game approval processes

• Rising average revenue per paying user (ARPPU)

• Growing disposable incomes across key markets

These factors position MENA-3 as a critical growth opportunity for publishers seeking expansion beyond more mature gaming markets.

Revenue Growth and Player Spending Continue to Climb

MENA-3 is projected to remain the second fastest-growing region tracked by Niko Partners, trailing only India. The region generated $2.15 billion in gaming revenue in 2025, representing 7.1% year-over-year growth. Niko Partners forecasts revenue to grow 7.8% in 2026 to $2.31 billion, reaching $2.94 billion by 2030, reflecting a five-year CAGR of 6.5%.

Just as notable is the region’s spending potential. MENA-3 is expected to record the strongest ARPU growth among all regions in Niko’s forecast. Annual ARPU is projected to reach $38 by 2030, nearly $10 higher than 2025 levels, while the UAE is set to surpass $100 ARPU this year.

As monetization improves and disposable incomes increase, player spending is expected to become an even more important driver of market growth over the remainder of the decade.

Understanding MENA Players: Localization, Spending, and Esports

For international publishers, localization remains one of the most important factors for success in MENA. According to Niko Partners’ 2026 survey, respecting religious values ranks as the second most important localization consideration when players evaluate new games. This underscores the importance of cultural understanding and regional relevance when bringing global IP to MENA audiences.

The survey also revealed a notable shift in spending behavior. Both high-spending players and non-spenders increased year-over-year, highlighting a growing polarization in player spending. Future revenue growth may depend less on converting every player into a payer and more on effectively retaining, monetizing, and expanding spending among high-value player segments.

Meanwhile, Saudi Arabia continues to strengthen its position as a global gaming and esports hub under Vision 2030. Investments from government entities, Public Investment Fund-backed companies, and private organizations are accelerating the development of local talent, infrastructure, game studios, and esports initiatives. Major events such as the Esports World Cup and the upcoming Esports Nations Cup are helping bring competitive gaming further into the mainstream while reinforcing Saudi Arabia’s growing influence on the global esports stage.

Market Regulatory Changes Are Reshaping the Market

Recent regulatory developments across MENA have increasingly focused on online child safety, creating varied approaches across different countries. Egypt has implemented a full ban on Roblox, while Saudi Arabia and the UAE introduced temporary restrictions aimed at enabling stronger moderation and safety measures.

At the same time, Saudi Arabia’s introduction of a 21+ age rating provides regulators with greater flexibility when evaluating mature titles. Games that previously faced significant restrictions, including titles such as Grand Theft Auto, can now receive approval with minimal or no modifications, creating new opportunities for publishers targeting adult audiences.

Some of the key takeaways from the report:

• About 40.9% of respondents across MENA-3 regularly tune in to video game-related content, including livestreams and gaming videos, whereas one in four gamers (25.3%) actively participates in dedicated online gaming communities, reinforcing the importance of social interaction and community-driven experiences.

• The region’s gaming audience is also becoming increasingly diverse. More than one-third of players are female, representing over 25 million gamers across the three markets.

• When it comes to localization, players are looking for more than just language support. Dedicated servers (16.4%) rank as the most important localization factor, followed by alignment with religious values (13.5%), in-game representation (11.1%), text translation (10.7%), and local currency and payment options (9.5%).

As gaming audiences mature and spending power grows, success in MENA will increasingly depend on understanding local preferences, investing in meaningful localization, and building long-term engagement strategies tailored to the region’s unique cultural and economic landscape.

At Niko Partners, we help businesses turn market intelligence into action. Through our syndicated research, subscription-based insights, and custom consulting services, we provide the data, analysis, and strategic guidance needed to navigate the rapidly evolving gaming markets across Asia and MENA. Whether you are evaluating market expansion opportunities, analyzing player behavior, assessing monetization strategies, or tracking regulatory developments, our research helps organizations make informed business decisions with confidence. Contact us to learn how Niko Partners can help your organization identify growth opportunities and build successful strategies in one of the world’s largest and most dynamic gaming markets. 

Capcom has reported its highest software unit sales for the first half of a fiscal year in its 47-year history, with 36.86 million units sold (+54.5% YoY) supported by strong catalog sales and continued demand for new releases. The milestone reflects the publisher’s ability to generate sustained revenue from established franchises while introducing new IP and reviving older series. According to Capcom’s financial report for the six months ending September 30, 2026, Onimusha: Way of the Sword surpassed 1.7 million units sold and Pragmata exceeded 2.7 million units. Catalog titles including Monster Hunter: World, Resident Evil 2 and Resident Evil 7 Biohazard also contributed to the record performance, demonstrating the long-term commercial value of Capcom’s existing portfolio.

Why this matters: Capcom continues to benefit from a strong portfolio of back catalog titles, which accounted for 87.3% of sales during the period. Resident Evil 4, which launched in 2023, sold an additional 3.5 million units in the past six months, taking total sales to 17.15 million. Digital distribution accounted for 92.4% of Capcom’s software unit sales during the period, with PC representing 57.1% and consoles accounting for 35.3%. Physical sales contributed just 7.6%, highlighting the company’s increasing reliance on digital storefronts and the growing importance of PC as a distribution platform.

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Join Niko Partners and Xsolla’s panel at gamescom asia

If you’re going to gamescom asia, check out our panel on how to go big in Indonesia, Thailand, Vietnam. Niko’s CEO Lisa Cosmas Hanson and Xsolla’s SVP Global Industry Relations & Funding Justin Berenbaum will share about what local payments, pricing, and go-to-market strategy that works in these three notable SEA markets.

Don’t miss this session on 30 October at 2:15 PM at the Queen Sirikit National Convention Center, Plenary Hall, Level 1, Stage 3. Mark your calendar and be part of the conversation. See you there!

Meet us in Bangkok →

AI-assisted reverse engineering leads to revival of discontinued games

AI-assisted game preservation and reverse engineering projects are gaining traction in China and globally, allowing enthusiasts to revive discontinued games, port older titles to new platforms and introduce gameplay modifications with less manual development work. The trend reflects the growing accessibility of AI coding tools and their potential to reduce technical barriers to game restoration. In China, creators on Bilibili have showcased playable revival projects for discontinued titles previously operated by major publishers such as Tencent, NetEase and Bilibili. Similar projects have emerged internationally, involving franchises such as Halo, Grand Theft Auto: Vice City, and Call of Duty: Black Ops. On October 14, Microsoft also announced a dedicated team exploring game decompilation, cross platform compatibility and player driven creation.

Why this matters: AI is accelerating reverse engineering by helping developers reconstruct readable code from existing games, reducing work that previously required extensive manual analysis. However, copyright restrictions and ongoing server maintenance costs remain major obstacles to making revived games publicly available and sustainable. Moreover, technical feasibility does not automatically grant developers permission to distribute or operate modified versions of commercial games. This poses both a challenge to game developers, as well as an emerging opportunity for new ways to enhance existing IP.

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Japanese players are big fans of single-player games

Single-player games continue to thrive in Japan, and the numbers tell a compelling story. Persona 5, one of Japan’s most beloved single-player franchises, has surpassed 13 million copies sold worldwide, highlighting the enduring appeal of narrative-driven solo experiences. According to a recent Niko Partners survey, 80.2% of Japanese gamers prefer single-player games. That’s the highest percentage among the 13 Asia and MENA markets tracked by Niko Partners.

Japan remains a market where immersive, story-rich solo gameplay continues to drive engagement and commercial success. Learn more from Niko’s East Asia Player Behavior & Market Insights Reports here.

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Logitech G to establish Shanghai innovation center

Logitech G has announced plans to establish a technology research and innovation center in Shanghai in early 2027, strengthening its commitment to incorporating Chinese consumer insights into product development and global innovation. The facility will be located in Shanghai’s Jing’an district and forms part of Logitech’s long-term strategy of developing products in China for both domestic and international markets. The Logitech China Technology Research and Innovation Center will focus on emerging technologies, including cloud gaming ecosystems, edge artificial intelligence, generative AI and intelligent video collaboration.

Why this matters: The investment reflects the growing importance of China not only as a major market for gaming hardware and peripherals, but also as a source of product innovation. By establishing local research capabilities, Logitech G aims to better understand Chinese gaming preferences, emerging technologies and evolving hardware requirements while strengthening its ability to respond to market trends. According to Niko Partners 2026 Player Survey Data, approximately 20% of Chinese players have purchased additional gaming accessories for their gaming device in the past 12 months, accounting for nearly 150 million players.

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Nintendo to launch eShop and Switch Online in the Philippines

Nintendo has announced that the Nintendo eShop and Nintendo Switch Online services will officially launch in the Philippines on November 10, 2026, expanding its digital distribution and subscription services in Southeast Asia. The services will be available for both Nintendo Switch and Nintendo Switch 2 users, providing direct access to digital game purchases, downloadable content and Nintendo Switch Online memberships. The announcement follows the official launch of Nintendo Switch 2 in the Philippines on June 26, 2025, priced at PHP 31,990.

Why this matters: Despite the console’s local release last year, Nintendo did not initially provide official access to its digital storefront or online subscription services. Filipino players have instead relied on changing their Nintendo Account region to another supported market to access these features. Nintendo has steadily expanded its presence in the Philippines through the launch of a localized website, official e-commerce channels and its first authorized retail store at SM Makati in May 2026. The introduction of local digital services represents another step toward establishing a more comprehensive commercial and distribution infrastructure in the country.

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Job listings reveal direction of China’s games industry

A look at the hiring pages of 60 Chinese game companies showed more than 8,500 game development related job openings in October 2026, indicating sustained recruitment despite a decline in vacancies compared with spring 2026. Job descriptions reveal growing demand for Unreal Engine 5 (UE5), generative AI, technical art, global publishing and open-world game development expertise. UE5 is increasingly prominent in new projects, particularly those targeting multiple platforms and high-fidelity visuals. Shooter development is diversifying beyond battle royale into extraction, tactical, PvE and large-scale warfare formats. Life simulation and social MMO projects are also attracting investment.

Why this matters: The findings indicate that Chinese developers are continuing to invest in technically ambitious, multiplatform games while diversifying beyond traditional RPG and shooter formats. AI recruitment is becoming more specialized, with positions focused on AI agents, NPC behavior, content generation, level design and production workflows, suggesting AI is moving from experimental initiatives toward dedicated production roles. However, job listings indicate development priorities rather than confirmed project launches or future commercial success.

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VNGGames partners with Hai Phong authorities to host Games ON gaming, esports festival

Games ON: Hai Phong 2026 brought gaming and esports into a public urban setting, combining national-level competitions, gaming experiences, music, and local food businesses. Held on October 10-11 at Hai Phong City Theatre Square, the festival was organized by VNGGames in coordination with the Hai Phong People’s Committee, with esports finals supported by the city’s Department of Culture, Sports and Tourism and the Vietnam Recreational and Electronic Sports Association (VIRESA). The event featured three national-level finals across Teamfight Tactics and League of Legends, 32 competitors, and experiences featuring more than 20 VNGGames titles. Reportedly, the festival attracted nearly 50,000 visits.

Why this matters: The event demonstrates how publishers can extend gaming beyond online platforms and dedicated venues to reach broader audiences and connect esports with tourism, food, music, and local commerce. For local authorities and esports organizers, the model could diversify night-time cultural offerings while giving national competitions greater public exposure. Its longer-term significance will depend on whether future editions can sustain audience interest, support local businesses, and provide reliable measures of economic and esports-development outcomes.

Link to original article (Vietnamese) →

iDreamsky partners with Shenzhen government on gaming fund

Chinese game publisher iDreamSky has entered a strategic partnership with Shenzhen Nanshan Strategic Emerging Industries Investment Co., Ltd., a state-owned investment company, to establish a RMB 200 million (approximately $30 million) gaming industry investment initiative. The partnership aims to support game development, publishing and related technology businesses in Shenzhen’s Nanshan District. The investment will be channeled through Gametopia, Nanshan District’s official gaming industry incubation platform, with a focus on promising local developers and businesses operating within its ecosystem. Priority areas include game research and development, AI-assisted content production, publishing services and supporting businesses across the gaming industry value chain.

Why this matters: The partnership will also support the expansion of iDreamSky’s publishing operations, particularly its efforts to bring overseas games into the Chinese market. The company plans to leverage its existing pipeline of international titles, including Gardenscapes (WeChat Edition) and War Robots, alongside partnerships with other game publishers. The initiative aims to strengthen local publishing capabilities while creating additional opportunities for developers and service providers in Nanshan. The agreement represents a further expansion of government-backed investment in China’s gaming industry, with Nanshan District deploying state capital to support both emerging developers and established publishing businesses.

Link to original article (Chinese) →

NetEase strengthens Marvel Rivals moderation following player backlash

NetEase has announced stricter penalties for toxic behavior in Marvel Rivals following criticism from Western players and content creators over changes to the game’s reporting system. The controversy emerged after hate speech was removed as a dedicated reporting category, raising concerns about how discriminatory behavior would be reported and whether such violations would receive appropriate attention. The developer has since clarified that insults, harassment, discrimination and hate speech remain prohibited across both text and voice communication.

Why this matters: NetEase confirmed that it has escalated penalties for speech violations, with sanctions determined by the nature and severity of the offense and the player’s previous disciplinary record. Severe or repeated violations will receive significantly harsher punishments. The company also described speech moderation as an ongoing commitment, pledging to improve its systems for detecting and addressing toxic behavior. Discussions on Reddit prior indicated that some players believe toxic communication has negatively affected their experience, with some reporting that they have stopped playing.

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Game services provider Side expands China operations

Global game services provider Side, formerly known as Pole to Win, has acquired Chengdu-based art outsourcing studio Roboto Entertainment, expanding its production capabilities in China and strengthening its global art services business. The acquisition will establish Side Chengdu, a new studio specializing in environment art and world-building for video games. Roboto Entertainment has experience supporting AAA and AA console and mobile games, and will collaborate with Side Shanghai and the company’s international operations across the Americas, Europe, the Middle East, Africa, and Asia.

Why this matters: Founded in 2009 with Japanese roots, Side operates more than 15 studios across over a dozen countries. Its existing services include quality assurance, localization, player support, audio production, art, co-development and data services. The move also reflects continued consolidation in the game services sector, as outsourcing providers expand their capabilities and geographic reach to compete for increasingly complex development contracts.

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KRAFTON India launches BGMI Survivor League with 50 creators, $73,520 prize pool

KRAFTON India launched The Final Mahayudh: Survivor League, a 30-day Battlegrounds Mobile India creator competition running from October 18 to November 17, with 50 established and emerging creators representing a combined 69.7 million subscribers. Fans join a creator’s team, with their playtime and completed daily missions adding points to that creator’s score on a shared weekly leaderboard; the Switch phase on October 24 and 25 allows fans to change teams while retaining their accumulated points. The $73,520 (INR 7 million) prize pool is distributed among all 50 creators, with $12,600 (INR 1.2 million) for the winner.

Why this matters: Participants include notable creators such as Jonathan Gaming, Shreeman Legend, Snax Gaming, and others.The format makes fan activity a measurable part of creator competitions, giving creators an incentive to mobilize their communities and sustain engagement throughout the month. For publishers and gaming businesses, this offers a model for connecting in-game participation with creator marketing, although its commercial value will depend on actual player activity, retention, and audience response rather than subscriber reach alone.

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Events

gamescom asia x Thailand Game Show

October 29 - November 1, 2026
Bangkok, Thailand

Attendees: Niko Partners Senior Leadership Team, Nina Kitkrua

GamesBeat NEXT

November 2-3, 2026
San Francisco, USA

Speaker: Lisa Hanson

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

G-Star

November 19-21, 2026
Busan, South Korea

Attendee: Shin Young Kim

Contact us to set up a meeting →

Gamescom Asia x Thailand Game Show 2026 has expanded its international participation to 20 pavilions representing 12 markets across Asia, Europe and North America, following the addition of Indonesia, Japan, Malaysia and the US. The event will feature exhibitors from 29 countries and regions, marking its most internationally diverse lineup to date. The newly announced pavilions are supported by government and trade organizations, including Indonesia’s Ministry of Creative Economy, Japan’s JETRO, Malaysia Digital Economy Corporation and the US Embassy in Bangkok. MEET US THERE! Niko Partners will have 5 senior team members in attendance: Lisa, Xiaofeng, Alexander, Darang, and Narinder, plus our Thai analyst Nina! Contact us to set a meeting.

Why this matters: The event’s expansion highlights Southeast Asia’s growing importance as a regional hub for international game publishing, investment and business development. Thailand’s role as host also reinforces its position as a meeting point between established gaming markets such as Japan, China and South Korea and emerging development ecosystems across Southeast Asia. The business area will operate from October 29 to October 30, featuring a conference with more than 80 speakers from 27 countries.

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LEVEL UP KL 2026 highlights Malaysia’s ambitions for higher-value games industry growth

LEVEL UP KL 2026 brought together game developers, publishers, investors, and technology leaders in Kuala Lumpur on October 15-16, 2026, highlighting Malaysia’s efforts to accelerate games industry growth through investment, talent development, and original intellectual property creation. Organized by Malaysia Digital Economy Corporation (MDEC), the event supports the Digital Creative Ecosystem Roadmap, which targets MYR9 billion ($2.2 billion) in industry revenue, MYR6 billion ($1.5 billion) in exports, MYR 6 billion ($1.5 billion) in strategic investments, and 10,000 high-value jobs by 2030.

Why this matters: The conference featured more than 50 speakers, 25 discussion topics, five partner events, Nintendo and PlayStation industry sessions, the Asian debut of Game UX Summit, Games for Change, Xsolla Connect KL, Unreal Engine training, networking initiatives, and the SEA Game Awards, while targeting 400 business meetings, MYR120 million ($29.3 million) in export opportunities, and MYR100 million ($24.5 million) in investment opportunities. Malaysia is increasingly positioning itself as a regional game development hub by pairing investment incentives and talent programs with a stronger focus on original intellectual property creation and AI adoption.

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Related: Niko Partners at LEVEL UP KL - New Blog Post

Niko Partners was proud to take part as LEVEL UP KL’ss Knowledge Partner this year. The event was a great opportunity for sharing our market insights and engaging with professional from Southeast Asia video game industry. Read what we observed from the event in this new blog post.

Read the blog post →

Tencent’s Delta Force surpasses 58 million DAUs in China

Tencent announced on October 8, 2026, that Delta Force surpassed 58 million daily active users (DAUs) in China, up from the 50 million reported in March. The milestone reinforces the game’s position as one of China’s largest multiplayer shooters, with engagement continuing to expand more than two years after its September 2024 launch. Delta Force has experienced sustained growth since 2025, when DAUs increased from 12 million in April to 20 million in July and 30 million by September. Momentum continued into 2026, reaching 41 million in January and 50 million in March.

Why this matters: A key driver has been the frequency and diversity of content updates, with 11 seasons released over two years. While extraction shooter gameplay remains central, Delta Force has expanded its appeal through large scale warfare, cooperative missions, fishing, 1v1 combat and a new 5v5 round based bomb defusal mode. This approach allows Tencent to serve different player preferences and skill levels within a single live service ecosystem. The game has also benefited from a professional esports scene, livestreaming, creator generated content, community tournaments and cross platform support between PC and mobile.

Link to original article (Chinese) →

Join us at GamesBeat NEXT

Niko’s CEO and President Lisa Cosmas Hanson will be joining as a speaker for GamesBeat NEXT 2026 on November 2-3, 2026 in San Francisco. She will be a speaker on the African Games Market Roundtable. We’re excited to meet CEOs, founders, investors, CMOs, and technology leaders shaping the future of gaming, AI, mobile, entertainment, and global consumer platforms.

Last year sold out. Niko’s network can save 25% on registration with code GBNEXT26_SPEAKER_25.

Sign up here →

Resident Evil Reboot tops China box office

The 2026 Resident Evil reboot topped China’s box office during the October 9-11 weekend, generating RMB 81.2 million ($12.1 million) over three days. The film based on the Capcom video game franchise opened in China on October 5, during the latter part of the National Day Golden Week holiday, and has since accumulated approximately RMB 312 million ($45 million) in local box office revenue. Its worldwide gross has exceeded $325 million. The performance reinforces Resident Evil’s position as one of the more commercially successful video game film franchises in China.

Why this matters: The 2026 reboot has already surpassed the combined Chinese box office earnings of Resident Evil: Afterlife and Resident Evil: Retribution, although it remains significantly below the franchise’s highest grossing installment in the market, Resident Evil: The Final Chapter. Released in 2017, The Final Chapter generated approximately $159.5 million in China, nearly six times its $26.8 million North American box office revenue. China’s contribution demonstrated the franchise’s unusually strong appeal among Chinese audiences relative to its reception in North America.

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Japan Actors Union introduces AI Voice guidelines

The Japan Actors Union has introduced new guidelines governing the use of generative AI to replicate voice performances, addressing growing concerns over unauthorized voice cloning and the commercial use of actors’ performances in games, animation and other entertainment media. The framework recommends obtaining prior consent at every stage of AI voice production, including before using an actor’s recordings to train AI models. AI generated reproductions must be treated as new performances, requiring additional compensation or royalties rather than being covered automatically by existing recording agreements.

Why this matters: The announcement comes as generative AI adoption expands across Japan’s game development industry. Recent research indicates 85% of Japanese game developers are already using generative AI, although this covers broader development activities and does not necessarily indicate adoption of AI voice synthesis. Japanese games rely heavily on recognizable voice actors, particularly in anime styled RPGs and character driven live service titles. For AI generated translations and dubbing, the union recommends preserving the artistic integrity of the original performance and obtaining authorization before distributing translated performances internationally.

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Chinese tech and gaming companies release AI tools for interactive film games

China’s leading gaming and tech companies are investing in AI-powered creation tools for interactive film games, a genre combining filmed or animated storytelling with player driven choices and branching narratives. ByteDance, Tencent and Kuaishou are seeking to establish themselves as key technology providers for a content format that has historically faced high production costs. ByteDance, for example, introduced ICG Studio through the Chinese version of CapCut, launching the AI interactive film game creation platform in closed beta. Creators can generate scripts, character designs, environments, props and storyboards from an initial story outline.

Why this matters: Games such as The Invisible Guardian and Love Is All Around have demonstrated consumer demand for interactive storytelling in China, but the costs of producing multiple narrative paths have limited the supply of high quality titles. Developers interviewed reported that AI assistance reduced character artwork costs from RMB 2,000 (approximately $280) to RMB 800 ($110) per image, while the production budget for a small interactive game could decline from RMB 200,000 ($28,000) to RMB 150,000 ($21,000), a 25% reduction.

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PS5 Pro shortages lead to over RMB 10,000 cost in China

Rising memory and component costs, driven partly by growing demand from AI data centers, are contributing to higher console prices and tighter hardware availability. Sony, Microsoft and Nintendo have introduced price increases during 2026, adding pressure on consumer affordability as the industry approaches major releases such as Grand Theft Auto VI and Phantom Blade Zero. Sony’s PlayStation 5 Pro has experienced particularly significant price inflation in China. Its official retail price increased from RMB 5,599 ($780) to RMB 6,299 ($880) earlier this year. However, supply shortages have pushed resale prices considerably higher.

Why this matters: According to Dewu, the Hong Kong version’s average transaction price reached RMB 9,679 ($1,440) on October 10, up 58.7% from RMB 6,099 ($910) in March. Some third-party listings have exceeded RMB 10,000 ($1,400), while official retail channels remain out of stock. Sony is reportedly experiencing PS5 Pro shortages across multiple markets, with supply constraints potentially continuing into Q1 2027. Demand surrounding upcoming major game releases like GTA VI may be adding further pressure. Higher prices could extend replacement cycles, delay upgrades and encourage players to retain existing systems.

Link to original article (Chinese) →

Esports World Cup expands global qualification program for 2027

The Esports World Cup (EWC) has announced its 2027 EWC Qualifier Program, expanding the Road to EWC initiative to connect grassroots competitions and established esports tournaments with its annual championship. The qualification ecosystem aims to reach 1.8 million players through more than 400 events worldwide in 2027. The program introduces two partner operated qualification pathways. EWC Direct Qualifiers will allow established tournament organizers to integrate their competitions into the Road to EWC. EWC Satellite Last Chance Qualifiers will provide a new pathway for grassroots participants through competitions organized by local esports organizations, universities, gaming cafés, federations and gaming festivals.

Why this matters: The expansion signals a shift toward building a year round global esports ecosystem around the EWC rather than concentrating activity around a single annual event. By leveraging existing tournament infrastructure and community organizers, the program could expand EWC’s international reach without requiring the Esports Foundation to directly operate every competition. It also creates opportunities for smaller esports markets, including emerging regions across Asia and MENA, to develop competitive pathways and connect local players with international events.

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Tamil Nadu Chief Minister’s Trophy to feature six esports titles

The 2026 edition of the Tamil Nadu Chief Minister’s Trophy will feature six esports titles across mobile, PC, and Console. The tournament, being put together by the Sports Development Authority of Tamil Nadu will feature tournaments in BGMI, Valorant, Pokémon UNITE, EA FC 25, NBA 2K26, and Street Fighter 6. BGMI and Pokémon UNITE will be mobile tournaments, while Valorant will run on PC, and the remaining titles will be played on console (PlayStation). Registrations for the tournament have already been completed, and the tournaments for all sports (including esports) begin October 15.

Why this matters: Tamil Nadu has actively pursued a game and esports-forward approach across governments, with an emphasis on raising the state’s international profile and contributing to its GDP through exports and job creation. This will be at least the second time esports have featured in the annual Chief Minister’s Trophy series of tournaments.

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CookieRun India to shut down in December 2026

CookieRun India, part of the Devsisters-developed CookieRun franchise, will shut down operations in the country on December 18 2026, following which the game will not be available to players, and all game data will be deleted. Ahead of the shutdown, in-app purchases such as Cookie Passes and Crystal packages will be disabled, though players may still be able to view them in the shop. All in-game advertisement buttons have also been removed, and players that have purchased Crystals but not used them can visit the game’s official website. The game is published by Krafton in India.

Why this matters: The game was introduced to Indian players with heavy localization, including characters based on Indian sweets and special events based on Indian festivals. While it is likely financial considerations have played a part in the decision to shut the game down, it also points to a mixed performance for newer titles localized for the market; games such as Garuda Saga (also published by Krafton) have not performed to expectations, even as localized content in already-popular titles such as BGMI, Free Fire MAX, and Subway Surfers have received positive responses by Indian players.

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Events

gamescom asia x Thailand Game Show

October 29 - November 1, 2026
Bangkok, Thailand

Attendees: Niko Partners Senior Leadership Team

GamesBeat NEXT

November 2-3, 2026
San Francisco, USA

Speaker: Lisa Hanson

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

G-Star

November 19-21, 2026
Busan, South Korea

Attendee: Shin Young Kim

Contact us to set up a meeting →

Now in its 12th edition, LEVEL UP KL continues to cement its position as one of Southeast Asia’s leading video game industry events. Held at Connexion Conference & Event Centre in Kuala Lumpur, Malaysia, the conference brings together developers, publishers, and leaders from the industry to connect and explore the latest trends shaping the games market in Malaysia and beyond. As a long-time participant, Niko Partners was especially proud to join this year’s event as LEVEL UP KL’s Knowledge Partner, giving us a chance to showcase insights into video game markets in Southeast Asia.

On day one of the conference, Darang Candra, Director of Southeast Asia and East Asia Research, took the stage to present ‘Video Games Market Trends in Southeast Asia and Beyond in 2026’. Drawing on Niko’s Southeast Asia Player Behavior & Market Insights Reports, the session explored trends, emerging technologies, and industry outlooks across the region, while also presenting insights into the Malaysian market, including key findings from our bulletin with Moonton about the impact of Mobile Legends: Bang Bang in the country.

Over three days, we attended panels and sessions with a multitude of topics from indie game marketing to video games funding. We also saw the SEA Game Awards Show, which highlights latest developments and successful game titles from the region.

Beyond the conference sessions, Niko Partners’ team connected with industry stakeholders at our exhibition booth. There is strong demand for trusted market intelligence as companies navigate opportunities across changing player preferences and regulator approaches in the region. We also noted the increased presence of higher education institutions in the event, with a significant chunk of the auditorium hosting Malaysian entities that help build talent pools for the country’s games industry. The conversations throughout the event demonstrated the enthusiasm and hopeful outlook driving the region’s video game industry.

The LEVEL UP KL 2026 expo also featured a broad mix of exhibitors, ranging from student teams to emerging indie developers, SEA Game Awards finalists, and established companies (e.g., Electronic Arts, Bandai Namco, PlayStation, Virtuos, and Larian Studios). The academic showcase included a total of 12 institutions, including Asia Pacific University of Technology & Innovation, Management & Science University, Tunku Abdul Rahman University of Management and Technology, University of Wollongong Malaysia, and Universiti Teknologi MARA, connecting student talent with the wider video game industry. Meanwhile, developers, including Streamline Studios, Passion Republic, and Glow Production were also represented, alongside regional organizations such as Game AiCon Seoul and the Hong Kong Game Developer Alliance.

Dive deep into the market through our SEA-6 Games Market Reports, or get regular pulse check on the region 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.

Capcom has partnered with Novaly Studios to introduce Street Fighter characters into Untitled Boxing Game on Roblox, marking a notable expansion of one of Japan’s most established fighting game franchises into user generated gaming experiences. The four-week collaboration began on October 9, 2026, with Ryu becoming playable in Untitled Boxing Game. Developed by Novaly Studios and launched in 2023, Untitled Boxing Game has accumulated more than 1.4 billion lifetime visits, with average concurrent player counts in the thousands, making it one of Roblox’s established fighting game experiences.

Why this matters: The collaboration is particularly significant given the historically cautious approach of many Japanese entertainment companies toward third-party use of their IP. Although Japanese gaming and anime franchises are highly popular on Roblox, much of their presence has traditionally come through unofficial, unlicensed experiences created by users. Capcom’s partnership represents a more direct approach to engaging these audiences through authorized content.

Link to original article →

Join us at gamescom asia x Thailand Game Show 2026

Niko Partners is heading to gamescom asia x Thailand Game Show on October 29-30, 2026 in Bangkok, Thailand. Our Senior Team and Thailand Analyst are excited to connect and share our latest insights in Southeast Asia’s largest gaming business and consumer event. Let us know if you want to set up a meeting with us!

Meet us there →

Find us at GamingCon Bharat

GamingCon Bharat 2026 comes to Mumbai on October 17-18 for its third edition. This year, Niko Partners is thrilled to be the event’s Knowledge Partner. In addition, Niko’s Senior Analyst Narinder Kapur moderating “India’s Gaming Moment: From Players to Global Powerhouse” on the first day and other panels. Come say hi if you’re around!

Meet us there →

Kakao Games partners with Abu Dhabi to explore MENA publishing expansion

South Korean publisher Kakao Games has signed an agreement with the Abu Dhabi Investment Office (ADIO) to explore opportunities to expand its publishing, localization and live operations across the Middle East and other international markets. The partnership was formalized at the Abu Dhabi Investment Forum in Seoul, which brought together more than 400 government officials, investors and business leaders. The partnership forms part of Abu Dhabi’s broader efforts to strengthen economic ties with South Korea. ADIO announced three agreements at the forum covering investment, financial innovation, gaming and advanced technology.

Why this matters: Under the agreement, ADIO will explore ways to support Kakao Games’ regional expansion, including connections with Abu Dhabi’s gaming, creative and technology ecosystems. Potential areas of cooperation include local publishing capabilities, Arabic localization and ongoing live service operations. However, the agreement remains exploratory, with no specific investment commitments, game launches or operational timelines announced. The Abu Dhabi Chamber also reported that Korean companies registered as members increased by 5.9% in 2025, while member companies with Korean partners grew by 9.2%.

Korea isn’t the only East Asian market we track to be boosting its presence in MENA. Niko and Media City Qatar recently published a Research Brief on Japanese IP in GCC, and you can download it for free here.

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Something fun for our readers

Lisa spoke at an AWS Game Tech event in Los Angeles last week where there was an illustrator who conjured up an image based on the topics of the talk she gave. Check it out!

Interested in this kind of presentation? Talk to us →

Moonton Games celebrates MLBB‘s 10-year milestone with community festival in Surabaya, Indonesia

Mobile Legends: Bang Bang (MLBB) celebrated its 10th anniversary in Surabaya, Indonesia’s second-largest city, from October 9-11 through the ALL IN MLBB 10th Anniversary Festival, bringing together players, community members, and developers. The event highlighted Indonesia’s role in the game’s growth since its 2016 launch and served as an opportunity for developers to engage directly with local players. According to Moonton, MLBB has grown from 10 heroes at launch to 133 heroes, 42 season updates, 24 casual game modes, and more than 1.5 billion global installations. The company also highlighted the title’s expanding esports presence, including participation in the International Olympic Committee-sanctioned Asian Games, MSC’s debut in Europe at EWC 2026 in Paris, and the road to the M8 World Championship Finals in Istanbul.

Why this matters: MLBB‘s anniversary activities in Indonesia’s second-largest city highlight the importance of long-term community building in sustaining leading live service mobile games across Southeast Asia. The event also showcases that a major game event in the country can also be hosted outside of Jakarta, with Surabaya also being known to be a major population hub. For publishers, the event demonstrates how strong local engagement and cultural localization can support both player retention and broader ecosystem growth over time.

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Riot Games establishes subsidiary in Guangzhou to develop strategy game

Riot Games has established a new Chinese subsidiary, Aoquan Guangzhou Network Technology Co., Ltd., with recruitment activity indicating that the company is building a full development team in Guangzhou. Job descriptions provide indications that at least one project could be a mobile city building strategy game, although Riot has not officially announced the project. The Guangzhou expansion is notable because Riot’s development footprint in China has previously been concentrated in Shanghai.

Why this matters: Its Shanghai development center opened in 2021 as Riot’s first major development center outside its Los Angeles headquarters and has grown to approximately 300 employees, with plans to reach around 500. The team is working on a new League of Legends IP action RPG, among other development initiatives. Guangzhou could provide Riot with access to a different talent pool that can build titles beyond what Riot Games is traditionally known for.

Link to original article (Chinese) →

Tencent expands investment in Turkey’s mobile games industry

Turkish mobile game developer Flow Games has secured a $46 million funding package, with Tencent contributing approximately 75%. The investment represents one of Tencent’s largest minority investments in a Turkish game development studio and reinforces its growing interest in the country’s mobile games industry. Istanbul-based Flow Games is the developer of Smash Fest, a physics-based mobile shooter that has experienced significant download growth in recent months.

Why this matters: The funding will support the studio’s continued development and expansion, while providing Tencent with exposure to an emerging mobile title and the expertise of a local development team. Tencent previously led a $25 million Series A funding round for Istanbul-based Circle Games, while its subsidiary Miniclip acquired Turkish developer Masomo, best known for Head Ball 2, in 2019. The investment highlights Tencent’s strategy of expanding its global mobile games portfolio through minority investments and acquisitions, most recently in the casual and hybrid-casual segments.

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Singapore Game Fest 2026 to be hosted on two weekends in October, focusing on games and esports

C2E4, a Singapore-based organizer focused on video games, esports, pop culture, and community events, has announced GAME FEST 2026. The event will be held across two weekends in October. The festival will combine game communities and competitive esports, with the first leg at Downtown East on October 11 featuring Pokémon activities, driving simulators, cosplay, and creator events, followed by the main esports program at Suntec Convention Centre on October 17–18. Games included in the tournament includes Mobile Legends: Bang Bang, Teamfight Tactics, and Super Smash Bros: Ultimate.

Why this matters: GAME FEST Singapore 2026 is a multi-genre gaming, esports, and pop culture convention celebrating women and communities in the ACG (Anime, Comics, Games) ecosystem across multiple dates and venues in Singapore. The competitive program includes Campus Legends Singapore, Cyberathlete Community Cup, Predator League Singapore qualifiers, TCG Challengers Series, Silver Showdown, and a BYOD gaming zone. C2E4 will also take GAME FEST to Singapore Polytechnic, Nanyang Polytechnic, and Republic Polytechnic through campus roadshows in October and November.

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Garena expanded its Free Fire global licensing program

Garena has announced the expansion of Free Fire’s global licensing program ahead of its 10th anniversary in 2027. The program aims to seek new partnerships to extend the mobile game into consumer products, retail experiences, and localized brand activations. Since its 2017 launch, Free Fire has expanded its ecosystem through collaborations with major entertainment IPs including Squid Game, Spider-Man, and Naruto Shippuden, as well as other non-entertainment consumer brands such as Lamborghini, Infinix, realme, nubia, SNICKERS, and Red Bull. The collaborations have connected in-game content with physical products and promotions.

Why this matters: Garena is also preparing Free Fire Daybreak, an anime adaptation co-produced with KADOKAWA and scheduled to premiere globally in Spring 2027, creating additional opportunities for licensed merchandise and entertainment partnerships. With hundreds of millions of players worldwide and a strong presence across Southeast Asia, Latin America, South Asia and the Middle East, Garena sees Free Fire as an opportunity for partners to reach an engaged global mobile gaming audience.

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Apple releases new data on Chinese app developers

An average of 167 million users visited the Chinese Apple App Store each week in 2025 according to an Apple commissioned study. The study estimated that digital goods and services generated RMB 149 billion (approximately $22 billion) in revenue within China’s App Store ecosystem, while in-app advertising accounted for an additional RMB 212 billion (approximately $32 billion). Niko Partners estimates that approximately $13 billion of the digital goods and services revenue was via player spending on iOS games, representing approximately 59% of total spending on digital goods.

Why this matters: China remains a major domestic market for Apple’s ecosystem with games accounting for a majority of digital goods and services revenue. Apple has also introduced changes intended to improve developer economics. Earlier in 2026, the company reduced its commission on digital goods and services sold through China’s App Store to 25%. Its App Store Mini Apps Partner Program offers a further reduced commission rate of 12% for qualifying in-app purchases, supporting developers distributing lightweight experiences within larger applications.

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Lumi Master finds success as an app and mini game

Bilibili’s creature collection RPG Lumi Master (Shine! Lumi) has achieved a strong initial launch across China’s native mobile app and WeChat mini game markets, demonstrating the potential of a cross-platform distribution strategy for casual games. Released on September 17, 2026, the title entered China’s iOS game grossing top 20 shortly after launch before climbing into the upper ranks of WeChat’s mini game charts. Unlike the larger open world creature collection games being developed by Tencent, HoYoverse, Manjuu and FunPlus, Lumi Master adopts a lightweight, portrait-oriented format designed around short play sessions and accessible mechanics.

Why this matters: This design makes the game suitable for both traditional mobile players and the more casual audiences typically reached through mini game platforms. Lumi Master‘s launch illustrates how China’s mobile publishers are increasingly integrating native apps and mini games into a unified distribution strategy. Its early success also suggests that lightweight, accessible creature collection experiences can compete alongside more ambitious open world titles. However, sustaining engagement beyond the initial marketing push will be important in determining whether this cross-platform approach translates into long-term commercial success.

Link to original article (Chinese) →

Haima Cloud releases cloud gaming handheld console

Chinese cloud gaming and GPU computing provider Haima Cloud has launched the Haimacloud GEAR, a handheld gaming device that combines local Android functionality with cloud based PC gaming. The device is priced at RMB 3,149 (approximately $470), while a bundle including a one year cloud gaming subscription costs RMB 4,349 (approximately $650). According to the company, its servers use Intel Core i7-12700KF processors and NVIDIA GeForce RTX 4070 GPUs, supporting game streaming at 1080p resolution and up to 144 frames per second.

Why this matters: Unlike handheld gaming PCs such as the Steam Deck and ROG Ally, which prioritize local processing power, Haimacloud’s approach shifts demanding graphical workloads to remote servers. The launch comes as rising semiconductor and memory costs are increasing the price of gaming hardware, creating opportunities for alternative approaches to delivering premium gaming experiences. However, the GEAR’s relatively high upfront price and additional subscription costs may limit its appeal compared with conventional handhelds. Especially given a Nintendo Switch 2 can be purchased for a similar cost.

Link to original article →

Events

LEVEL UP KL

October 14-16, 2026
Kuala Lumpur, Malaysia

Speaker: Darang Candra

Attendee: Edward Tien

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Speaker: Narinder Kapur

gamescom asia x Thailand Game Show

October 29 - November 1, 2026
Bangkok, Thailand

Attendees: Niko Partners Senior Leadership Team

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

Contact us to set up a meeting →

Auto chess ranked among the most-watched genres in China’s livestreaming market in September 2026. Niko Partners China Games & Livestreaming Tracker showed the genre maintained its strong momentum, with the newly launched Honor of Kings: Ace emerging as a key contributor to its continued popularity.

Read the highlights →

China approves 209 video games in September 2026

The National Press and Publication Administration (NPPA), mainland China’s regulator in charge of game approvals, issued ISBNs for 206 domestic games and 3 import games on September 30, 2026. This is the eighth batch of games approved in 2026 and takes total approvals to 1,524 domestic games and 46 import games. This is the second month in a row where approvals have exceeded the 200 milestone since March 2019. The domestic batch included 185 mobile games, 2 PC games, 1 console game, and 18 cross-platform games, while the import games list included 1 mobile game, 1 PC game, and 1 cross platform game. A total of 15 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: One of the most notable approvals is miHoYo’s Nodusfall, a new realistic fantasy action RPG developed using Unreal Engine 5 that was first unveiled at Gamescom 2026. Other notable domestic approvals include Archosaur Games’ Lord of Mysteries: The Fool, based on the popular Chinese web novel IP, alongside titles from 4399, YOOZOO, Electronic Soul and other established publishers. Only three imported titles were approved in the September batch. These include Joycity’s Korean basketball title 3on3 FreeStyle, a new game based on the Korean Yulgang IP, and Modern Tanks. Niko Partners projects more than 2,100 licenses will be approved this year including around 75 import games.

Link to original article (Chinese) →

Join us at GamesBeat Next 2026

Meet Niko Partners CEO Lisa Cosmas Hanson at GamesBeat Next 2026 in San Francisco on November 2-3, 2026. GamesBeat Next brings together leaders and decision-makers from gaming, technology, media, and related industries to discuss emerging trends and what lies ahead for interactive entertainment. Register using code LISAHANSON25 for 25% off your ticket.

Meet us there →

Manga Productions to publish Persona 4: Revival in MENA region

Saudi based Manga Productions have announced that they will be publishing and distributing SEGA’s upcoming RPG Persona 4: Revival in the Middle East and North Africa, releasing in February 2027. This would be the second time the two publishers collaborate on a major launch for the region, having previously collaborated on the launch of Sonic Racing: CrossWorlds.  Much like Sonic Racing, the stated plan is to have a localized marketing campaign.

Why this matters: Manga Productions has also worked closely with a number of game developers, most notably Koei Tecmo, helping them publish and localize Nioh 3, FATAL FRAME II: Crimson Butterfly REMAKE, and Dynasty Warriors: Origins. However, what’s notable about the Sonic Racing and Persona 4 publishing deals is that they do not include Arabic language support. Our research recently found that 37% of players in the GCC would be ok with a game only supporting English text, with an additional 33% supporting an English and Arabic release.

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China wins big at 2026 Asian Games esports events

China secured four esports medals, including three golds and one silver, at the 2026 Asian Games in Aichi Nagoya, reinforcing its position as one of Asia’s leading competitive gaming markets. Esports expanded significantly for this edition, with 11 medal events offering 13 gold medals. China sent 23 esports athletes across four events and won a medal in every title it entered. The three gold medals came from Honor of Kings, Naraka: Bladepoint and Identity V, while China took silver in PUBG Mobile. Notably, China did not participate in League of Legends despite winning bronze in the title at the Hangzhou Asian Games in 2023.

Why this matters: Mu Xinyue became the first woman to win an Asian Games esports gold medal in the Identity V final, marking an important milestone for female representation in competitive gaming. China also won Naraka: Bladepoint, another NetEase developed title, and Honor of Kings, Tencent’s flagship MOBA. The results are notable because all four games China entered are either developed by Chinese companies or have major Chinese publishing and esports operations, demonstrating the country’s strength across both game development and competitive performance.

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Riot Games establishes subsidiary in Guangzhou to develop strategy game

Riot Games has established a new Chinese subsidiary, Aoquan Guangzhou Network Technology Co., Ltd., with recruitment activity indicating that the company is building a full development team in Guangzhou. Job descriptions provide indications that at least one project could be a mobile city building strategy game, although Riot has not officially announced the project. The Guangzhou expansion is notable because Riot’s development footprint in China has previously been concentrated in Shanghai.

Why this matters: Its Shanghai development center opened in 2021 as Riot’s first major development center outside its Los Angeles headquarters and has grown to approximately 300 employees, with plans to reach around 500. The team is working on a new League of Legends IP action RPG, among other development initiatives. Guangzhou could provide Riot with access to a different talent pool that can build titles beyond what Riot Games is traditionally known for.

Link to original article (Chinese) →

China’s Generative AI userbase reaches 700 million

The number of generative AI users in China exceeded 700 million as of June 2026, according to a report from the China Internet Network Information Center, highlighting the rapid mainstream adoption of consumer AI services. This represents an increase of at least 98 million users from 602 million at the end of 2025, or growth of more than 16% in six months. General information retrieval remains the dominant use case, with approximately 76% of users primarily using AI for question and answer interactions.

Why this matters: The number of users engaging with AI assistants and AI productivity tools for office work increased by more than 100% YoY, suggesting that generative AI is increasingly being integrated into everyday workflows rather than used primarily for experimentation. Niko Partners data shows that approximately 70% of players in China are interested in GenAI being integrated into video games, with 29.5% of players already using AI tools to search for game information.

Link to original article →

Marvel Rivals faces criticism over poor reporting and moderation systems

NetEase’s Marvel Rivals is facing criticism from Western players and content creators following changes to its in-game reporting system that removed hate speech as a dedicated reporting category. Players attempting to report racism, sexism, homophobia and other discriminatory behavior in text or voice chat have found that there is no longer a specific option covering such conduct. The change has attracted particular attention because some players and creators had already raised concerns about how effectively Marvel Rivals moderates abusive communication.

Why this matters: The backlash demonstrates how trust and safety systems have become an important component of live service operations, particularly for competitive multiplayer games. While the removal does not necessarily mean NetEase has stopped taking action against hate speech, as inappropriate behavior may still fall under broader reporting categories or moderation policies, it does raise concerns and creates uncertainty for players in regard to how discriminatory behavior should be reported and whether such reports will be prioritized appropriately.

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Krafton cancels another PUBG spin-off game as it tries to find new direction for the IP

Krafton has ended development of PUBG: Black Budget, approximately nine months after the extraction shooter entered closed alpha testing on Steam. The project underwent several alpha and community tests during 2026, but will no longer proceed toward commercial release. Its cancellation marks the second PUBG spin-off discontinued this year, following Krafton’s March closure of free to play tactical shooter PUBG: Blindspot, just two months after it entered Early Access.

Why this matters: Both projects formed part of Krafton’s broader effort to expand PUBG beyond battle royale and test the IP across new genres. The company has also outlined plans to evolve PUBG: Battlegrounds into a broader content platform, including sandbox oriented UGC built around its existing gunplay, mechanics and physics. Despite the cancellations, experimentation with the franchise is continuing. Krafton unveiled PUBG: Ded.Net at Gamescom in August, a multiplayer shooter incorporating roguelike progression.

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China elevates video games in 5-year plan for publishing industry

In March 2026, China’s Five Year Plan for 2026 to 2030 identified online games alongside web literature, film, television and animation as important components of China’s cultural export strategy. This direction was reinforced on September 21, when the National Press and Publication Administration issued its 15th Five Year Plan for the publishing industry, systematically incorporating online games into a national publishing industry plan for the first time. While existing regulatory controls still remain in place, greater emphasis on licensing stability, technology development and exports provides a more supportive policy environment for Chinese publishers seeking to build globally competitive game IP.

Why this matters: The plan calls for strengthening the supply of ISBNs while optimizing online publishing service licenses. Games are also being incorporated into China’s broader push for high quality popular cultural works. The plan also calls for an AI empowered publishing initiative, support for technology innovation laboratories and participation by online publishing companies in national technology programs. International expansion is explicitly encouraged, with the plan calling on online games to deepen their presence in global markets. The policy further institutionalizes a shift in China’s treatment of games from primarily a regulated entertainment product toward a strategically supported cultural and technology industry.

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Nexon expands ARC Raiders and The Finals into film and television

Nexon has partnered with Chernin Entertainment to develop film and television adaptations of ARC Raiders and The Finals, extending two of Embark Studios’ game franchises into broader entertainment IP. The move follows the breakout performance of ARC Raiders, which launched in October 2025 and has since sold more than 16 million copies worldwide. The Finals provides a second established franchise for the partnership, which has registered more than 30 million players since launch. Its fictional televised competition format also provides a narrative framework that could translate relatively naturally into other entertainment formats.

Why this matters: The partnership reflects a broader transmedia push across the games industry, as publishers increasingly view successful games as entertainment franchises that can extend into film, television, animation and other media. Recent adaptations such as Fallout, The Last of Us and Cyberpunk: Edgerunners have demonstrated that screen adaptations can both monetize IP independently and drive renewed awareness and engagement for the underlying games. Publishers are consequently considering transmedia potential earlier in an IP’s lifecycle rather than waiting for franchises to mature over decades.

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Wemade employees establish union ahead of ownership change

Employees of Wemade established a labor union under the Korean Confederation of Trade Unions’ Chemical Fiber Food Workers’ Union as the game company moves toward a change in control involving Neopulse and Chinese game company Kingnet. The union plans to oppose potential restructuring and layoffs associated with changes in major shareholders or organizational restructuring, unilateral changes to working conditions, and changes to incentive payment systems, while seeking prior consultation on major business decisions and employment continuity for key operations including WEMIX.

Why this matters: Park Kwan Ho agreed on June 30 to sell his entire 39.33% stake in Wemade to Neopulse for KRW 920 billion ($657 million), and an investor consortium involving Neopulse and Kingnet is expected to hold 40.25% and become the largest shareholder if the transaction closes as planned by October 30. Wemade said it would respect the union’s rights, comply with relevant laws and procedures, and pursue labor relations based on mutual respect and open dialogue.

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Chinese flagship smartphones see sharp price increases

China’s leading smartphone manufacturers are raising flagship handset prices as rising memory costs continue to put pressure on consumer electronics manufacturers. Vivo, Oppo, Xiaomi and Honor all introduced new flagship devices in September 2026 with standard versions increasing in price by approximately RMB 500 ($70) to RMB 1,100 ($155) compared with their predecessors. Price increases are substantially larger for higher storage configurations, reaching as much as RMB 3,000 ($422).

Why this matters: The latest generation of mainstream Chinese flagship smartphones now generally starts at approximately RMB 5,500 ($774), while comparable storage configurations can cost more than RMB 1,000 above the previous generation. This reflects how higher memory costs disproportionately affect devices with larger RAM and storage configurations. At the same time, manufacturers are increasingly using AI functionality to justify premium positioning.

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Events

LEVEL UP KL

October 14-16, 2026
Kuala Lumpur, Malaysia

Speaker: Darang Candra

Attendee: Edward Tien

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Speaker: Narinder Kapur

gamescom asia x Thailand Game Show

October 29 - November 1, 2026
Bangkok, Thailand

Attendees: Niko Partners Senior Leadership Team

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

Contact us to set up a meeting →

East Asia remains a global gaming powerhouse despite ongoing economic challenges. Japan and South Korea, the world’s third- and fourth-largest video game markets, continue to have a positive outlook.

In Japan, strong Nintendo Switch 2 performance and rising PC gaming spending are expected to support market recovery despite broader economic pressures. In South Korea, an improving economy, a growing console market, and higher mobile game ARPU are creating new opportunities for growth. Learn more about it and download the key takeaways here.

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Niko Partners is GamingCon Bharat 2026 Knowledge Partner

Niko Partners is the official Knowledge Partner of GamingCon Bharat 2026, taking place October 17–18 at NESCO, Mumbai. Our Senior Analyst, Narinder Kapur, will also moderate the opening-day session, “India’s Gaming Moment: From Players to Global Powerhouse.” As one of the fastest-growing gaming markets we track, India continues to present significant opportunities for the global games industry. We look forward to bringing our latest market insights to the event and connecting with industry leaders in Mumbai.

Meet us there →

Love and Deepspace rebounds after new update

Papergames’ romance dating simulation title Love and Deepspace recorded a sharp revenue ranking increase following the September 22, 2026 launch of its limited five star Memory banner. According to Qimai, the title climbed to #2 on China’s iOS game revenue chart, #4 in Japan and #15 in South Korea. Community reception to the new character artwork was particularly positive. The performance comes after a challenging period for Papergames that was mired in controversy and led to a sharp drop in revenue and engagement.

Why this matters: In late June, the company announced Valko as a sixth romanceable male character, triggering significant backlash from existing players concerned about his characterization and the potential dilution of development resources for the five established leads. Papergames subsequently cancelled the character’s planned introduction, but this was also met with backlash from players that wanted the new character. The immediate chart performance after this new update suggests that there are still core users remain highly engaged and willing to spend when content centered on established characters resonates with them.

Link to original article (Chinese) →

PUBG: Battlegrounds faces backlash in Vietnam after KRAFTON permanently bans local esports players Himass, TanVuu

The incident began when South Korean streamer Soopi accused Vietnamese esports players Himass and TanVuu of using her livestream to obtain in-game information during PUBG Asia Stars 2026, prompting their removal from the tournament. KRAFTON subsequently permanently banned Himass and TanVuu from PUBG: Battlegrounds and all of its official esports competitions after an investigation concluded they had used external information and stream sniping. Vietnamese netizens later circulated screenshots and other footage that they said showed Soopi also viewing tournament livestream content during the event, intensifying disputes over whether the rules had been applied consistently.

Why this matters: KRAFTON also acknowledged operational shortcomings, including delayed communication and insufficient explanation during the investigation. The decision triggered substantial backlash in Vietnam, with streamers, gaming centers, teams, and players publicly distancing themselves from PUBG: Battlegrounds, while PUBG Vietnam Series 2026 Phase 2 was reportedly postponed indefinitely and Vietnamese PUBG: Battlegrounds channels became unavailable. The incident highlights how hasty disciplinary decisions, tournament governance, and inconsistent communication can affect not only individual players but also the wider commercial ecosystem supporting a competitive game.

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Philippines reverses temporary ban on Reddit and Discord

The Department of Information and Communications Technology announced on September 23 that it had given Reddit and Discord 24 hours to establish a physical office in the Philippines and provide detailed explanations of their safety protocols after a series of school shootings had raised concerns about online child safety. Reddit was given an extension to comply, but Discord was banned after failing to meet the deadline. While Reddit and Discord did eventually agree to establish offices, the outage caused disruption to both gamers, businesses and government entities that relied on Discord. The ban was reversed the following day.

Why this matters: The move led to widespread public backlash given both platforms are widely used by Filipino gaming communities, with Reddit serving as a hub for game discussions and news, while Discord supports gaming groups, guilds, and esports teams through communication and coordination tools. Both are also used by non-gamers, including for business and public entities. Both companies are also expected to submit safety plans, including age-verification measures, which could affect how gaming communities use the platforms in the Philippines.

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Tencent’s Monster Hunter Outlanders to release on October 29

Tencent’s TiMi Studio Group will launch Monster Hunter Outlanders globally on October 29, 2026, bringing Capcom’s flagship hunting franchise to mobile through a new survival action game. Pre-registration is underway across the App Store and Google Play and has already surpassed 5 million registrations. A separate mainland China release is planned from 2027 onwards. Licensed by Capcom and developed by TiMi, Monster Hunter Outlanders combines the franchise’s core monster hunting combat with crafting, exploration and survival elements.

Why this matters: The project is notable for attempting to translate the traditional Monster Hunter experience more directly to smartphones, rather than adapting the IP around a fundamentally different mobile genre. Previous mobile adaptations have produced mixed commercial results. Match 3 title Monster Hunter Puzzles has generated approximately $8.2 million in gross mobile revenue according to AppMagic estimates, compared with approximately $341 million for location-based Monster Hunter Now. Outlanders performance will provide a useful test of whether established premium action IP can be translated into a large scale mobile live service without sacrificing the gameplay identity that built the original franchise.

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G-STAR 2026 lineup sees participation of game companies from Japan, China, Europe, and more

The G-STAR Organizing Committee unveiled the exhibition and event lineup for G-STAR 2026, which will be held in Busan this November. BEXCO Exhibition Hall 1 will feature major exhibitors including main sponsor Krafton, Webzen, Google Play, Team42, and Hoyoverse. Major Chinese and Japanese studios such as NetEase’s Joker Studio, Century Games, and Bandai Namco will showcase their booths on Hall 1 while Exhibition Hall 2 will host an additional international lineup alongside the debut of the G-STAR Global Game Showcase and a dedicated stage program. Niko’s Korea analyst Shin Young Kim will attend the event.

Why this matters: G-STAR 2026’s growing international participation highlights South Korea’s continued importance as a regional hub for game marketing, community engagement, and industry networking, particularly after the Tokyo Game Show 2026 saw reduced Chinese company participation following the political issues between China and Japan. The event will also feature G-CON speakers from the gaming and entertainment industries, the OWCS Asia Stage 3 Grand Final, an online showcase called G-STAR Premier on November 18, and a Steam partnership that will promote participating titles through a dedicated event page and discount campaign.

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Indonesia selected to host IESF World Esports Championship 2026

Indonesia has been selected by the International Esports Federation (IESF) to host the IESF World Esports Championship 2026 from December 15-20, marking the third time the country has hosted the event after Jakarta in 2016 and Bali in 2022. IESF cited Indonesia’s successful hosting of the 2022 championship in Bali as a key factor behind the decision and expressed confidence in the country’s ability to deliver another major international esports tournament. 5 titles have been announced for the 2026 championship: Counter-Strike 2, Dota 2, eFootball, Mobile Legends: Bang Bang, and PUBG Mobile, with athletes competing under their national teams rather than professional organizations.

Why this matters: Indonesia securing its third IESF World Esports Championship highlights the country’s continued importance as a major esports hub in Southeast Asia. The IESF expects more than 500 esports athletes from 110 national federations, with participants required to qualify before competing in Indonesia, although details on the host city, venue, competition schedule, qualification system, categories, and prize pool have not yet been announced. Indonesia achieved strong results at the 2022 championship in Bali, winning gold medals in Dota 2, eFootball, and Mobile Legends: Bang Bang, a bronze medal in the women’s Counter-Strike: Global Offensive division, and the overall championship title.

Link to original article (Indonesian) →

Related: Indonesia promotes esports as a strategic national asset ahead of the 2026 Asian Games

Indonesian officials stated that esports should be viewed not only as part of the video games industry but also as a strategic instrument for national achievement, diplomacy, the digital economy, and global soft power. The position was highlighted during the departure of Indonesia’s national esports team to the 2026 Aichi-Nagoya Asian Games, where the country is competing in eight categories and targeting one gold, three silver, and four bronze medals.

Why this matters: Indonesian Communications Agency (Bakom RI) Deputy Ulta Levenia compared esports to historically significant competitions such as the 1972 Fischer-Spassky chess match, arguing that competitive arenas can serve as platforms for international influence and rivalry. Indonesia’s continued positioning of esports as a national development and soft-power tool highlights the growing institutionalization of competitive gaming across Asia.

Link to original article (Indonesian) →

iQOO 16 targets high-end mobile gamers

Chinese smartphone brand iQOO unveiled new gaming technologies for the iQOO 16 and iQOO Pad Ultra on September 23, 2026, strengthening its positioning around high-performance mobile gaming and esports. Both devices will use Qualcomm’s Snapdragon 8 Elite Extreme Gen 6 alongside iQOO’s self-developed Q4 gaming chip. The Q4 enables 2K resolution and 165fps super resolution and frame generation to operate concurrently, targeting higher visual fidelity and smoother gameplay. iQOO is also introducing Q Flex control technology, which integrates deeper into the game engine to reduce end-to-end input latency, alongside its next generation Monster Super Core engine and proprietary scheduler designed to maintain high frame rates under sustained workloads.

Why this matters: The company is expanding beyond device performance into gaming adjacent use cases through its 3+2 gaming technology strategy, comprising graphics, controls and performance optimization alongside cross-device gaming and livestreaming. Its Game Live Assistant supports native 165fps output for multiple major mobile games, high-quality encoding, automated recording, highlight generation and template-based editing. The devices will also have a proprietary PC game emulator, designed to allow players to access supported games from their Steam libraries. The emulator currently supports nearly 100 PC games, providing another example of the growing convergence between PC and mobile gaming hardware in China.

Link to original article (Chinese) →

Events

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Speaker: Narinder Kapur

gamescom asia x Thailand Game Show

October 29 - November 1, 2026
Mumbai, India

Attendees: Niko Partners Senior Leadership Team

Montréal International Game Summit (MIGS)

November 10-11, 2026
Montreal, Canada

Speaker: Alexander Champlin

Contact us to set up a meeting →

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Saudi Arabia to launch Kingdom of Gaming event in December 2026

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

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

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TapTap Play Festival connects Chinese players with developers

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

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

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Counter-Strike Major will return to Shanghai in 2027

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

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

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Kingnet to invest $300 million in consortium acquiring WeMade

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

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

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Bombanana! emerges as hit PC game from Turkish studio

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

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

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NODWIN Gaming launches sports division to expand beyond esports

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

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

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Events

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Speaker: Narinder Kapur

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

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

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

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

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

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

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

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

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

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

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

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Games industry employment shifts towards APAC and China

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

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

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Delta Force sets daily spending record with new season launch

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

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

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

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

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

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Level 5 apologizes for using Generative AI following fan backlash

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

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

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

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

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

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Huawei launches HarmonyOS 7 with over 35,000 compatible games

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

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

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Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Attendee: Narinder Kapur

Contact us to set up a meeting →

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Japanese gaming IP has a strong foothold in Qatar

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

Download the research brief here →

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

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

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

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Why the mini game market matters in China

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

Download the key takeaways here →

China approves 215 video games in July 2026

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

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

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Games industry employment shifts towards APAC and China

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

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

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Chinese smartphones see another round of price increases

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

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

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

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

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

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Successful Onimusha launch reinforces Capcom strategy to revive dormant IP

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

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

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Dubai to expand partnership with Xsolla for new accelerator program

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

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

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Cygames announces new gaming brand, CygamesEdge

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

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

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Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

GamingCon Bharat

October 17-18, 2026
Mumbai, India

Attendee: Narinder Kapur

Contact us to set up a meeting →

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

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

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

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

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

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

Download the research brief here →

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

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

Watch the interview here →

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

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

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

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US looking into new semiconductor tariffs that could impact gaming hardware

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

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

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Tomb Busters surpasses 12 million DAU in China

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

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

Link to original article (Chinese) →

miHoYo diversifies portfolio with Nodusfall

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

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

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Kuaishou launches Lord of Mysteries in China

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

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

Link to original article (Chinese) →

Xiaohongshu to host Red Land 2026 in October

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

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

Link to original article (Chinese) →

Lenovo prices cloud gaming handheld at RMB 2,199

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

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

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Roblox plans Riyadh headquarters to expand creator ecosystem across MENA

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

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

Link to original article (English) →

Events

Tokyo Game Show

September 17-18, 2026
Tokyo, Japan

Attendee: Darang Candra

LA Games Conference

September 30, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

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

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

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

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

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Meet Niko Partners at Tokyo Game Show

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

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Love and Deepspace sees player spending rebound following new update

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

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

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Esports World Cup wins for Chinese team AG.AL

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

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

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Krafton expands in-game advertising business in India

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

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

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NetEase reports Q2 2026 earnings

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

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

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

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

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

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MBC announces 1001: Threads of Mizan based on Arab lore

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

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

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

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

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

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South Korean esports org DRX launches division for game publishing

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

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

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Events

Tokyo Game Show

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

Attendee: Darang Candra

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

Contact us to set up a meeting →

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

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

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

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

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

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

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

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

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

Link to original article (Chinese) →

Niko Partners to speak at LA Games Conference

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

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

Meet us there →

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

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

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

Download the key takeaways →

Inaugural Esports Nations Cup delayed a whole year to November 2027

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

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

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

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

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

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

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

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

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Tencent announces PUBG Mobile Light to expand PUBG Mobile player base

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

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

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

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

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

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Xsolla expands local payment options across Asia Pacific and other markets

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

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

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Events

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

Contact us to set up a meeting →

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

Read the blog post →

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

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

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

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

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

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

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Love and Deepspace sees major revenue hit after Valko controversy

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

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

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

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

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

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China applies ecommerce tax rules to skin trading

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

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

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Nintendo to officially launch Nintendo Switch 1 & 2 in Indonesia

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

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

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Chinese court rules that online game accounts can be inherited

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

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

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Events

LA Games Conference

September 30-October 1, 2026
Los Angeles, USA

Speaker: Lisa Hanson

Attendee: Alexander Champlin

Use code NikoPartners20 for 20% off

Contact us to set up a meeting →

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

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

Why India’s Gaming Market Is Growing

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

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

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

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

• Increasing player engagement with legacy PC titles.

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

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

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

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

UGC Platforms Continue to Expand While Attitudes Toward AI Shift

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

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

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

Some of the key takeaways from the report:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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PGDX 2026 Highlights from Niko Partners

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

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

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

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Niko Partners at GameForge 2026

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

Sign up for the event →

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

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

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

Link to original article (Japanese) →

Nazara Technologies CEO Nitish Mittersain Steps Down After 26 Years

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

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

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

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

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

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

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

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

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Tencent revives QQ Pet with AI enhancements

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

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

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Chinese GPU firm MetaX files for Hong Kong IPO

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

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

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Events

GameForge 2026

August 10, 2026
Mumbai, India

Speaker: Narinder Kapur

Contact us to set up a meeting →

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

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

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

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

Diverse Growth Drivers

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

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

What Southeast Asian Players Are Telling Us

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

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

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

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

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

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