Niko News: 6 million Nintendo Switch 2 sold in 7 weeks
Nintendo sells through 6 million Nintendo Switch 2 units in 7 weeks
Nintendo reported net sales for Q1 2026/3 of JPY 572.3 billion ($3.89 billion), up 132.1% YoY, with operating profit of JPY 56.9 billion ($386.77 million), up 4.4% YoY. The doubling of sales is due to the release of the Nintendo Switch 2 console on June 5, which has sold 5.82 million units worldwide in its first quarter, with 8.67 million software. Nintendo estimates the console has exceeded 6 million units in 7 weeks after launch.
Why this matters: Pent up demand for a new Nintendo console was high, and the company indicates it is exceeding supply in many countries. Nintendo is also looking to expand its presence outside its core markets, with 20% of Nintendo Switch 2 shipments to regions other than the Americas, Europe and Japan. This is compared to 11.5% of Nintendo Switch LTD shipments outside these regions. The Switch 2 officially launched in MENA and Southeast Asia, as well as in Hong Kong which is a key grey market route into mainland China.
Niko Partners is bullish that demand for Switch 2 will remain strong this year, with sales likely to exceed our initial projection of 15 million units. That said, key variables could significantly influence sales performance beyond the first year. Learn more about our forecasts of Nintendo, Netmarble, and other select video game companies in this Q2 2025 Pre-Earnings Analysis.
Strategic Alliance between gamescom asia and Thailand Game Show announced
gamescom asia and Thailand Game Show are joint hosting in Bangkok from October 16–19, 2025, under the theme “World of Gaming,” This joint represents a strategic alignment between global and regional gaming platforms. The event includes both consumer-oriented and industry-focused zones, with activities ranging from indie game showcases and esports competitions to business networking sessions and developer panels. There will be over 70 speakers from 20 countries, with major international publishers participating such as Capcom and Ubisoft.
Why this matters: The event is expected to attract over 200,000 visitors, while highlighting Thailand’s aim to become a regional gaming hub and strengthening Southeast Asia’s growing role in the global game industry. Niko Partners will be gamescom asia's Knowledge Partner for a fourth consecutive time.
ChinaJoy 2025 kicks off with key announcements
Niko Partners VP Xiaofeng Zeng attended ChinaJoy 2025, officially known as the China Digital Entertainment Expo and Conference last week. The opening announcements included the launch of PlayStation's China Hero Project Phase Four, new esports investments, and updated data underscoring the market's upward momentum.
Government support was also a major theme. Sun Shoushan, Chairman of the China Audio-Video and Digital Publishing Association, emphasized three key developments:
Institutionalized Talent Development: In April 2025, China's Ministry of Education officially incorporated game art and design into the national higher education discipline system, formalizing academic and vocational pathways for industry talent.
Accelerated AI Integration: Companies such as Tencent, NetEase, and Perfect World have scaled full-chain AI systems covering development, operations, and user services, with DeepSeek and other models playing a foundational role.
Mini Game Sector Growth: The mini game category continues to deliver viral hits and is increasingly recognized as a high-growth vertical for mobile-first users.
Shanghai municipal leaders reaffirmed the city's ambition to become both a "global esports capital" and a "city of gaming innovation." Since launching its three-year Game and Esports Development Plan in 2024, the city has committed to practical policy support, infrastructure investment, and international collaboration to attract talent and capital.
Sony announces fourth phase of China Hero Project
Sony Interactive Entertainment (SIE) held a pre-ChinaJoy press conference on July 31 to announce the fourth phase of the China Hero Project. Originally started in 2016, the project allows developers to apply for funding and support from PlayStation, with the company choose games it believes have potential to succeed in China and globally. Compared to the previous three phases, Phase Four features a broader and deeper support system for selected developers.
Why this matters: This expanded initiative signals Sony's increasing strategic interest in cultivating high-quality console and cross-platform IPs from China, positioning the PlayStation ecosystem as the preferred publishing avenue for premium Chinese games on console. The event also revealed major updates from prior cohorts of the China Hero Project. Phase Three titles Daba: Land of Water Scar and EXILEDGE will receive additional investment.
Link to original article (Chinese) →
Wuchang Fallen Feathers sells 1 million copies in first week
Niko Partners estimates that Wuchang: Fallen Feathers has sold 1 million units across PC and console in its first week, excluding copies obtained via Xbox Game Pass. We estimate approximately 75% of units were sold in China, indicating limited success overseas. Wuchang: Fallen Feathers released globally for PC, PS5 and Xbox Series X|S globally on July 24, 2025, priced at RMB 248 ($34) for the standard edition in China and RMB 298 ($41) for the deluxe edition. The action RPG is developed by domestic game studio Leenzee Games and distributed by 505 Games globally.
Why this matters: According to our China Games & Streaming Tracker, Wuchang was the #6 most viewed title on Chinese game live streaming platforms during its launch week with a cumulative 21 million views. However, this is considerably lower than the 177 million views that Black Myth: Wukong achieved during its launch week, an 8.5x increase. Reviews for the game have been mixed with the title scoring 75/100 on Metacritic. User reviews on Steam were extremely negative with only 38% of the reviews written in Simplified Chinese being positive. The reviews primarily revolved around issues with optimization and performance, as well as pricing issues. There were also some complaints about the story of the game, which some found insensitive.
Tencent releases new AI model for game development and virtual experiences
Tencent's Hunyuan team has released Hunyuan 3D World Model 1.0, an open-source AI LLM capable of generating fully explorable and interactive 3D environments from simple text or image prompts. Positioned as a next-generation content creation tool, the model introduces a semantically layered 3D mesh representation that allows panoramic images to serve as foundations for real-time navigable virtual spaces. Hunyuan 3D significantly reduces the barrier to entry for developers and content creators by compressing what traditionally required weeks of professional asset design into a process that takes minutes.
Why this matters: Niko Partners 2025 Gamer Behavior Survey found that 85% of gamers in China are aware of generative AI technology, with 39.4% of all gamers interested in its application within video games (more about this on our Knowledge Brief about GenAI in Asia). The release of this new model, and previous models, reinforces Tencent's intent to compete not only as a publisher and platform, but as an infrastructure provider for game development. For the industry, this development lowers production costs, enables rapid prototyping, and potentially reshapes how studios of all sizes create immersive worlds.
Krafton Acquires Last Epoch Developer Eleventh Hour Games for $96M
Krafton has acquired 100% of Eleventh Hour Games (EHG), the indie developer behind the breakout Action RPG Last Epoch, for an initial consideration of $96 million. Founded in 2018 by a group of ARPG enthusiasts, the developer launched Last Epoch in 2024 with the game selling 3 million copies to date. The game has been widely praised for its deep character customization, innovative crafting systems, and a responsive approach to community-driven development.
Why this matters: The acquisition strengthens Krafton’s portfolio in the competitive Action RPG segment, an area traditionally dominated by franchises like Diablo and Path of Exile. The acquisition also underscores a broader shift toward consolidating mid-tier studios with hit titles and live service viability, especially as Krafton looks to expand globally and beyond its PUBG IP. We note that EHG had secured a low-equity investment from Tencent in 2022, with the firm now selling its stake to Krafton in this deal.
Honor of Kings World Cup 2025 sets global viewership record
The Honor of Kings World Cup (KWC) 2025 has become the title's most-watched esports event to date, according to data from Esports Charts. The tournament generated over 3 million watch hours across 71 hours of airtime, with a peak concurrent viewership of 653,309 and an average of 51,397 viewers. Notably, the English-language stream alone reached a peak of 191,000, underscoring the growing appeal of the game beyond China.
Why this matters: KWC 2025's numbers mark a significant milestone as the game continues its international push, especially given that Esports Charts excludes data from Chinese streaming platforms. Niko Partners China Games & Streaming Tracker shows that the KWC 2025 also had higher viewership in China than the 2025 KPL Spring Split did, although we note that this was not a record for Honor of Kings esports events like it was outside China. These figures show that Honor of Kings is continuing to gain traction outside China and validates the Esports World Cup in Riyadh as a major international tournament.
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Overwatch 2 launches dating simulation mini game for Chinese players
Blizzard has released the second installment of its Overwatch 2 dating sim mini game called Loverwatch, exclusively available for players in mainland China. The new edition expands significantly on the original, which debuted globally on February 13, 2023, with limited romance options. This new version centers on D.Va and introduces a broader lineup of romantic candidates.
Why this matters: The game retains its visual novel format and introduces new dialogue trees, multiple endings, and unique character interactions. Upon completing character-specific dialogue routes, players can earn in-game skin rewards for the associated hero. While the original Loverwatch was essentially treated as a parody by the developers, the second installment is looking to tap into the growing dating simulation game genre in China.
Bilibili launches Steam account integration to deepen gaming engagement
Bilibili has officially rolled out a beta version of its new Steam account binding feature, allowing users to link their Steam game libraries to their Bilibili profiles. The integration is currently limited to users who have joined any of Bilibili's community hubs. The feature calculates Steam account value based on the real-time RMB pricing of all owned base games in the user's library. However, due to platform, licensing, or policy limitations, some titles may not be displayed within the Bilibili ecosystem.
Why this matters: This move reflects Bilibili's broader strategy to consolidate its position as a core hub for gaming communities in China. It's also notable because Steam continues to operate in a grey area in China given the global version is accessible in the country and offers unlicensed games. This reflects increased mainstreaming of Steam in the country as the leading PC game distribution platform.
Link to original article (Chinese) →
Events
New Global Sport Conference
Riyadh, Saudi Arabia
August 23-24, 2025
Speaker: Lisa Hanson
Malaysia MPL Finals
Kuala Lumpur, Malaysia
September 12-15, 2025
Attendee: Edward Tien
Tokyo Game Show
Tokyo, Japan
September 25-28, 2025
Attendee: Lisa Hanson