Source: Zhitong Finance
On March 29, the State Press and Publication Administration released approval information for domestic online games for March 2024. A total of 107 games were approved.
On March 29, the State Press and Publication Administration released approval information for domestic online games for March 2024. A total of 107 games were approved, including 45 mobile versions, 57 mobile-casual puzzle versions, and 1 game received a console version number. Wanlian Securities said that the number of editions continues to be increased, and high-quality mobile games are driving up market expectations. Game editions will continue to increase in 2024, new high-quality and popular games from leading manufacturers will continue to be launched, the overall Chinese game market is expected to improve, leading products in overseas markets are performing well, and overseas revenue from games developed by China is stable. Overall, the game market is expected to show a growing trend. Related concept stocks: Bilibili-W (09626), NetEase - S (09999), China Mobile Games (00302), Tencent Holdings (00700).
Specifically, notable products include games such as Jinshan Software's subsidiary Xishanju's “Demolition Machine”, Youxing Network's “Star Tower Traveler”, Giant Network's “Master of Secrets”, the Thunder game “Legend of Origin: Slime Doesn't Cry”, Fanpass Technology's “Flying Mirror”, Jianyou Technology's “Wandering Pet Home”, Awaron's “King of Magic Street”, Baidu Duoku's “Sui Tang Fenghuo Record”, etc.
According to reports, “Unblock Machine” is the official name of the product “CodeBreak” that Nishiyamaju is currently developing. According to the official website, this game is a futuristic sci-fi mech-themed multiplayer battle game. Since its debut at TGA, “Limitless Machine” has received widespread attention in the international market. Currently, the product is available on the Steam store page, but the exact launch time, pricing, and configuration requirements have not been disclosed.
“Master of Secrets” (formerly known as “Code Name: Mysterious”) is an RPG game launched by Kuaishou's self-developed game brand. The game IP was adapted from the novel of the same name. At the beginning of March, the game revealed an actual video demo of the scene, and test recruitment began. In addition, “Throne Without Owners” by Giant Network has also received a mobile version this time. “Borderless Throne” is an MMORPG that focuses on factional confrontation gameplay. The “Dawn of Genesis” file deletion test ended on February 4.
It is worth mentioning that the number of casual puzzle games this time is 57, accounting for more than half. Furthermore, out of 111 games that passed the review in February, the number of casual puzzle games reached 62, accounting for more than half. In response, some industry insiders believe that app games will face challenges in 2023. In app games, the traditional, and tricky game market is shrinking seriously, and lightweight gameplay is easy to get started. Games that gradually enter medium to heavy commercial models and adapt to fragmented gaming time are app gaming trends.
Also, the “2024 Game Approval Change Information” was also announced on the same day. There is a total of 40 game change information. Among them are “Operation Wilderness,” “Eternity,” “Harry Potter: The Awakening,” and “Need for Speed: Assemble” by “Head” NetEase, and Tencent's “Need for Speed: Assemble”. According to the changes, NetEase's “Operation Wilderness” was an additional client for the original application category, the “Never Enduring” was added to the mobile terminal, and “Harry Potter: The Magical Awakening” was an additional client for the original reporting category.
Looking at industry data, according to the “Monthly Report on the Chinese Game Industry for February 2024" issued by the Game Industry Committee of the China Audio and Digital Association, the Chinese game market achieved revenue of 24.875 billion yuan in February, up 2.17% month-on-month and 15.12% year-on-year. In the field of segmentation, China's mobile game market performed well. Actual sales revenue reached 18.255 billion yuan, up 3.21% from month to month, and up 17.88% year on year. The Chinese client-side game market also achieved actual sales revenue of 5.642 billion yuan, up 0.75% month-on-month and 5.94% year-on-year.
The agency said that in February, due to product operation activities during the Spring Festival, game market revenue showed significant growth. For example, new activities such as Spring Festival passes, item coupons, and limited-time promotions have stimulated users' desire to spend to a certain extent and promoted rapid growth in market revenue.
Huajin Securities believes that the global game market is showing a positive development trend, and there have been breakthroughs in all segments of the domestic game market. Huachuang Securities, on the other hand, pointed out that after early adjustments, the valuation of the game sector has returned to a low level. The mid-term proposal focuses on the upward direction of prosperity, long-term focus on technology implementation, and give the game sector a “recommended” rating. It is recommended to focus on three main lines: 1) Overseas business accounts for a relatively high share, and culture represents the direction of going overseas; 2) represents the leading qualitative direction and competes for youth growth; 3) fundamentals seize segmentation opportunities and there is room for repair.
Related concept stocks:
$BILIBILI-W (09626.HK)$: At the 2023 fourth quarter results meeting, the company said that game revenue in the fourth quarter increased 2% month-on-month to reach 1 billion yuan, and the annual revenue was 4 billion yuan. Currently, 3 games in the company's pipeline have obtained domestic game versions, including the Japanese card game “Blazing Sky”, the domestic SLG game “Three Kingdoms: Determining the World”, and the domestic card game “Everything Is New.”
$NTES-S (09999.HK)$: UBS pointed out in the research report that NetEase will publish its blockbuster work “The Eagle” on March 28. It is initially estimated that the first 12 months after the launch of the new game will contribute about 6 billion yuan in revenue, or 6% of NetEase's total revenue in 2023, and is expected to contribute 800 million to 1 billion yuan in the first month.
$CMGE (00302.HK)$: China Mobile Games insists on building a diversified IP gaming ecosystem, forming a core competitive advantage with “IP resources - independent research and development - global distribution - own IP operation - Guofeng metaverse platform”. It has complete plans to launch new games and rich product reserves.
$TENCENT (00700.HK)$: Starting January 21, the Douyin live broadcast of “Wang Zhe Rongyao” will be fully open. “Yuanmeng Star” performed well, and has rich game reserves or continues to drive the growth of the game business.
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