Source: EboVersea
Author: Everbright Overseas & Internet Team
Incidents:AIGC technology benefits the game industry and focuses on potential market catalysis in the near future. On March 21, 23, Beijing time, Huang Renxun, CEO of gaming GPU leader Nvidia, will deliver a speech introducing the latest developments in AI; on March 24, Beijing time, Microsoft will introduce the risks and responsibilities of AI technology in game applications at the GDC press conference; on March 31, Beijing time, Microsoft will introduce application cases and technical discussions of Azure OpenAI in game NPC scenarios during the GDC China trip.
Comment:The recent concentrated release of AIGC is progressing in favor of the game industry. Entertaining game content is highly tolerant of AIGC's potential reliability risks, and recognition for its creativity and interactivity is high. AIGC's promotion progress may exceed expectations, and the valuation of the game sector is expected to increase.
The potential impact of AIGC on the gaming industry is as follows:
Short-term: AIGC technology can help improve game development efficiency and reduce development costs and development thresholds.
1) Assist in completing basic and repetitive work in development.In terms of game art, AI can be used to generate basic art materials, etc., to efficiently complete tasks such as model mapping and material splicing; in terms of game programs, repetitive work in the code writing process is optimized based on the game engine. At the same time, code review and management will be more efficient, and code review and management will be more efficient, and code can be easily modified in batches by providing modification ideas.
2) Reduce development costs with AI-generated content.Taking game dubbing as an example, the cost of game dubbing often increases at the same time as the amount of game text. With the advancement of AI dubbing technology, once the dubbing quality reaches industry standards, the cost of game dubbing will be reduced.
3) AI technology assists project management, enables developers to focus more on creative work and improve the overall quality of the game.In the traditional game development process, game planning takes up a lot of time in daily tasks such as configuration tables and communication requirements. AI technology allows developers to focus more on the core competitiveness of games such as gameplay design.
Mid-term: After policies such as copyright and regulation of AI-generated content are improved, AIGC technology is expected to greatly improve the gaming experience.
1) In-game AI text generation has the potential to be implemented earlier and is expected to enhance game differentiation and player appeal.The application of generative AI in games is already in its infancy. The 23M2 “Against Water Cold” mobile game announced that it will implement GPT, the first game in China, to give NPCs higher autonomy and randomness, and enhance the realism of interaction. The “Against Water Cold” mobile game will be launched on 23M6.
2) AI-generated images, music, etc. are expected to enrich game content and enhance players' interactive experience.The game can personalize art resources such as appearance, clothing, and scenes according to players' needs, and freely change the style of the game's background music, etc. Currently, topics such as copyright, content censorship, and data security of AI-generated content have not been completed, and it is expected that the commercialization process will be accelerated after the relevant regulations are improved.
Long-term: AIGC technology is expected to comprehensively help the upgrading of game forms and industrial transformation.
1) AIGC is a key technology for non-linear game design, enabling players to independently change the game process.The plot and process of most games at this stage use a linear design that is preset in advance, and the in-depth application of AI technology enables the game to automatically generate plot branches, mission routes, etc. according to players' preferences.
2) Combine VR\ AR technology to provide a personalized gaming experience through generative game mechanics.Player preferences can be analyzed through sensors, and game stories, scenes, personalized gameplay, etc. can be generated independently by AI, greatly increasing the interactivity and immersion of the game.
3) Looking ahead to generative content changing the underlying logic of game design.Currently, game categories such as the open world rely on the stacking and filling of content. Generative AI is expected to independently generate new content in the open world to enrich the gaming experience.
We believe that games and advanced technology have always been closely linked, and the AIGC wave will be no exception. The application of AI technology is expected to break through the existing mobile game and mobile game-dominated industry patterns and achieve changes in the game industry.
Investment advice:Maintain the “buy” rating of the Internet media industry, and I am optimistic that the application of AIGC to the gaming side will progress or exceed expectations,I recommend Tencent Holdings, NetEase - S, 37 Entertainment,Follow China Mobile Games and Giants Network.
Follow the AIGC industry chain:
1) Internet giants have accumulated extensive AI technology to help strengthen their advantages and sell products to the B-side. They recommend Tencent Holdings and Baidu Group-SW and follow Alibaba;
2) AI text content creation assistance, focusing on Reading Text Group, Pocket Reading Technology, and Chinese Online;
3) Advancing the application of AI in multi-modal content, content generation enhances film production productivity, recommends Light Media and Chinese movies, and focuses on Visual China, Wanxing Technology, and Meitu.
4) AI marketing digital people to improve their intelligence level: recommend Mango Supermedia, focus on Blue Cursor, Fengyu Zhu, Flying Cloud, and Three People;
5) Data elements in AIGC development are scarce and are in line with the main line of digital China: focus on Zhejiang digital culture, Zhejiang cultural interconnection, Chinese science transmission, and it's worth buying.
Risk warning:AI technology research and development and product iteration fall short of anticipated risks; competition in the AI industry intensifies risks; commercialization progress falls short of anticipated risks; domestic and foreign policy risks.
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