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

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

Why India’s Gaming Market Is Growing

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

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

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

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

• Increasing player engagement with legacy PC titles.

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

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

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

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

UGC Platforms Continue to Expand While Attitudes Toward AI Shift

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

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

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

Some of the key takeaways from the report:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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PGDX 2026 Highlights from Niko Partners

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

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

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

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Niko Partners at GameForge 2026

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

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

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

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

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Nazara Technologies CEO Nitish Mittersain Steps Down After 26 Years

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

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

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

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

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

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

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

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

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Tencent revives QQ Pet with AI enhancements

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

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

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Chinese GPU firm MetaX files for Hong Kong IPO

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

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

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Events

GameForge 2026

August 10, 2026
Mumbai, India

Speaker: Narinder Kapur

Contact us to set up a meeting →

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

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

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

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

Diverse Growth Drivers

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

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

What Southeast Asian Players Are Telling Us

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

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

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

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

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

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

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

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

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Capcom says remakes help fund new games and IP

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

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

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

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

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

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

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

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

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Tencent brings Esports World Cup 2026 festival to Wuhan

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

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

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Sega opens another store in China

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

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

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Garena reveals Free Fire Daybreak anime

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

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

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Tencent to shut down Final Fantasy XIV Mobile in China

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

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

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Huya starts experimenting with digital human AI models

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

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

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Events

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

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

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

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

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

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

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

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

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

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

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

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

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Gameloft and Tencent soft launch mobile GTA-like game

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

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

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China approves launch of Apple Intelligence

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

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

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Bilibili World 2026 attracts 400,000 attendees over 3 days

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

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

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Samsung highlights Gaming Hub user growth amid rising gaming hardware prices

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

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

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China’s games industry employment remained stable in 2025

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

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

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Lenovo to release cloud gaming handheld

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

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

Link to original article (Chinese) →

Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

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

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

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

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

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

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

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

Read the highlights →

Chinese firms remove AI companion features ahead of new regulation

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

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

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Tencent deploys AI-powered tools to enhance youth regulation compliance

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

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

Link to original article (Chinese) →

Yoozoo outlines how it using AI in game development and marketing

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

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

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Papergames withdraws Love and Deepspace booth from Bilibili World

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

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

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

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

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

Link to original article (Japanese) →

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

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

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

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

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

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

Link to original article (Indonesian) →

GRAC warns users to protect against probability disclosure violations

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

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

Link to original article (Korean) →

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

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

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

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

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

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

Link to original article (Indonesian) →

Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

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

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

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

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

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

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

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

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

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

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

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Hero Esports CEO makes the case for esports going mainstream

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

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

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Esports World Cup announces partnerships with Chinese digital platforms

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

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

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NetEase to shut down its livestreaming service CC Live

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

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

Link to original article (Chinese) →

Nintendo Switch to be discontinued in Europe after new battery regulations

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

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

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NeoPulse to acquire controlling stake in Wemade

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

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

Link to original article (Korean) →

TapTap showcases 52 games at annual press conference

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

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

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Savvy subsidiary, Scopely, make undisclosed investment in Studio AuKnow

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

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

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China expands local game approval pilot to Hunan

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

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

Link to original article (Chinese) →

Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

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

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

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

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

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

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

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

Download the whitepaper →

Meccha Chameleon surpasses 10 million sales within three weeks of launch

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

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

Link to original article (Japanese) →

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

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

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

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

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

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

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

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

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

Link to original article (Vietnamese) →

Indonesia deactivates 4.7 million underage accounts under new platform risk regulations

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

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

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

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

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

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Honor of Kings introduces community moderation and tougher penalties

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

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

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

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

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

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Events

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July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

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July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

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

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Asian Games 2026 esports competition schedule finalized

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

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

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Tencent evaluating global studio portfolio

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

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

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

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

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

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

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

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

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Nintendo to launch first pop-up store in Malaysia

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

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

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NetEase introduces Infinite Borders x Minecraft collaboration

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

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

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Koei Tecmo halts new game availability in Indonesia pending IGRS ratings

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

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

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

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

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

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Tencent starts testing vertical screen version of QQ Speed

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

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

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

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

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

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Roblox to keep chat off in MENA until Arabic moderation matures

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

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

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Nintendo tightens Switch 2 purchasing rules in Japan

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

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

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NetEase revives development on Three Kingdoms strategy game

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

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

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Meccha Chameleon sells 2 million units in less than a week

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

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

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miHoYo wins defamation lawsuit against gaming content creator

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

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

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

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

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

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Honor of Kings adds football mini game ahead of World Cup

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

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

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Unity China launches AI coding assistant for developers

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

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

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Events

Philippine Game Dev Expo (PGDX)

July 24-26, 2026
Manila, The Philippines

Speaker: Darang Candra

ChinaJoy

July 31-August 3, 2026
Shanghai, China

Attendee: Xiaofeng Zeng

Contact us to set up a meeting →

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

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

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

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

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

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

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

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Asian Champions League generates 380 million views

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

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

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Tencent launches AI powered interactive storytelling platform

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

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

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Slay the Spire 2 shows split between Chinese and Western players

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

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

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

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

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

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

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

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

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Arc Raiders to get enhanced PVE mode in China version

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

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

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RPG titles dominated China’s livestreaming landscape in May 2026, standing out as some of the month’s most-watched content. Niko Partners China Games & Livestreaming Tracker reveals that RPG remained one of the most-watched genres in China’s livestreaming market in May 2026, driven by a mix of established titles, major content updates, and new launches. Notably, Chaos Zero Nightmare captured a meaningful share of RPG viewership during the month, highlighting the genre’s increasingly competitive landscape.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read our post and download extensive key takeaways here.

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Sony launches new marketing campaign for PS5 in China

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

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

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

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WeChat Mini Games ecosystem surpasses 500m MAUs

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

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

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World of Tanks: Heat sees negative reviews across the board

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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NetEase 520 gaming showcase focuses on evergreen games

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

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

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

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

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

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

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

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

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China reportedly blocks Nvidia RTX 5090D V2 imports

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

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

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

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

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

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Nintendo Switch China Eshop is officially shut down

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

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

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Tencent’s Delta Force set to receive UGC mode

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

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

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China exclusive Overwatch content sparks discontent overseas

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

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

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NetEase Q1 2026 earnings

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

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

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Bilibili reports Q1 2026 earnings

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

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

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Nazara Technologies registers 13% annual revenue growth despite Q4 drag

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

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

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

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Esports World Cup to relocate from Riyadh to Paris

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

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

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Tencent reports Q1 2026 earnings with strong international games growth

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

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

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

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

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

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Arc Raiders tops 16 million sales prior to official China launch

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

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

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Capcom sees strong unit sale growth in Asia & MENA

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

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

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

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

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

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Snowbreak: Containment Zone relaunches in China with content adjustments

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sony reports record profits thanks to PS5

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

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

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Microsoft looking into bringing Xbox Game Pass to China

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

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

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PUBG Mobile removes controversial item over insensitive name

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

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

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Valorant Mobile surpasses 10m DAUs in China

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

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

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Chinese court rules on account reselling

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

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

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

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

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

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Roblox commits to Indonesia’s PP Tunas child safety rules

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

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

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Japan’s GGL esports community surpasses 300 community tournaments

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

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

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SNK to launch studio headed by former Tekken producer Katsuhiro Harada

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

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

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

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

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

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

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Sony looks to combat piracy with one time license check

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

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

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Tencent increases stake in Black Myth: Wukong developer

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

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

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NC signs marketing partnership with Roblox Korea

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

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

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Pearl Abyss divests from CCP Games in management buyout

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

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

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Zenless Zone Zero to release on Steam

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

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

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Chinese court rules on account reselling

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

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

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Wemade settles royalty dispute over MIR IP

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

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

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ChinaJoy sees strong profit growth ahead of 2026 event

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

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

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

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

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

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HarmonyOS reaches 55 million users in China

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

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

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Attendee: Alexander Champlin

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

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

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

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

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

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

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

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

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