Institutions: Bullish on Game Refinement and Going Global, Optimistic Outlook for 2026

China Galaxy Securities believes that the gaming industry’s growth momentum continues to strengthen driven by multiple factors such as the rise of emotional consumption, AI technology empowerment, deeper overseas expansion, and policy support. On the technological front, AI is reshaping the game production and experience chain, improving both efficiency and innovation; on the content side, high-quality iteration and global deployment have become core competitive advantages, while innovation in niche segments and the release of IP value are opening growth ceilings. The recommendation focuses on three core directions: first, deep integration of AI technology, especially for companies with differentiated advantages in content creation or interactive experiences; second, stable production capacity for high-quality content and a rich pipeline of new releases from leading and specialized developers; third, mature global operations with a continuous increase in overseas market share from industry leaders.

Dongwu Securities is optimistic about the quality and internationalization of games, expecting the industry’s prosperity to continue into 2026. In 2025, the industry fundamentals are positive: according to Gamma Data, the domestic game market’s actual sales revenue reached 350.8 billion yuan, an 8% year-on-year increase, setting a new record. The number of players reached 680 million, with a significant increase in female users. Meanwhile, self-developed games’ overseas revenue hit $20.5 billion, a 10% year-on-year growth continuing the high growth trend. Mini-programs and casual games have become core growth engines, with small and medium-sized teams accelerating overseas expansion, and localization and refined marketing trends becoming prominent. On the micro level, new games are emerging frequently. Against the backdrop of slight innovation in gameplay and improved marginal competitiveness in user acquisition, A-share game companies performed well. In 2025, many blockbuster new games focus on long-term operation categories. Coupled with the deepening trend of “high-quality content” and “cultural export,” the industry is expected to maintain prosperity into 2026 and continue to benefit from product cycle dividends.