Source: Finance Association
① Which game versions did the State Press and Publication Administration announce in March? ② Why is the market paying attention to game version announcements? ③ How are domestic games performing overseas?
Although Hong Kong stocks did not open today due to holidays, the game version approval announced last Friday may provide some boost to the trend of Internet stocks in the Hong Kong stock market on Tuesday.
First, let's take a look at the March domestic online game version numbers announced by the State Press and Publication Administration last Friday. A total of 107 games have been approved. These include 45 mobile versions, 57 mobile-casual puzzle editions, and 1 game getting a console version number.
Specifically, the listed companies mainly involved are:$37 Interactive Entertainment Network Technology Group (002555.SZ)$“The Big Explosion of Time”,$Giant Network Group (002558.SZ)$(002558.HK) “The Untitled Throne”;$G-bits Network Technology (603444.SH)$“Legend of Otherworld Origin: Slime Doesn't Cry”;$Shenzhen Zqgame (300052.SZ)$“Starting from Zero: Dream”, “Falling Cherry Blossoms 2: Chapter of Senraku”, “Ultimate Evolution”, and “Strongest Defense”;$KINGSOFT (03888.HK)$Its Nishi-Yamaju “Unrestricted Machine”;$CHINA MOBILE (00941.HK)$/$China Mobile Limited (600941.SH)$Migu Entertainment's “Dream Weaving Adventure Group” is on the list.
At the same time, the State Press and Publication Administration also announced the “2024 Game Approval Change Information” on the same day, with a total of 40 game changes. Among them are$NTES-S (09999.HK)$/$NetEase (NTES.US)$“Operation Wilderness,” “Eternity,” and “Harry Potter: Magical Awakening”;$TENCENT (00700.HK)$“Need for Speed: Assemble.” According to the change information, 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.
Why is the market paying so much attention to game version approval?
In fact, China's game version approval process was interrupted for about eight months, and this state of affairs was not restored until April 2022. In response, some analysts have pointed out that the restart of game version approval is a positive sign for the game industry as a whole, and it helps stabilize market expectations.
Once the game version number is officially released, the game that has received the version number can be officially operated in the Chinese market, which has a direct impact on the financial health and performance of the game company. Considering that China is one of the largest video game markets in the world, with a huge player base and huge market potential, the game version approval results not only have a significant impact on individual companies, but also an important reflection of the development status and trends of the game industry as a whole.
How are domestic games performing overseas?
In addition to the domestic game market, overseas markets may become incremental markets.
Since 2018, as the growth rate of the domestic market has slowed and superimposed versions have become stricter, going overseas has gradually become the strategic focus of many domestic game companies. Take Tencent as an example. According to the 2023 annual report, the company's revenue in the international market increased 14% year over year to 53.2 billion yuan, increasing its share of total game revenue to 30% for the first time. This share is a new high since the first announcement of international market revenue in the third quarter of 2021.
According to a recent research report by Huajin Securities, the overseas performance of domestic games continues to improve. According to Sensor Tower store intelligence data, global mobile game players contributed 6.5 billion US dollars to the App Store and Google Play in February 2024, an increase of 7.7% over the previous year. Among them, Tencent's “Wang Zhe Rongyao” received a total of 248 million US dollars from the Global App Store and Google Play, ranking first in the global mobile game bestseller list.
Furthermore, according to Gamma statistics, the actual sales revenue for games developed independently by China in overseas markets was US$1,346 billion, an increase of 3.44% over the previous month. The simultaneous commencement of some product operation activities overseas has led to an increase in turnover.
Editor/jayden