The Zhitong Finance App learned that Huajin Securities released a research report stating that based on generative AI and decision-making AI technology, GiiNex can support the full life cycle requirements of games from development to operation, and its UGC empowerment has already been launched in its party game “Yuanmeng Star”. Leading companies in the industry have increased their UGC layout, based on the high degree of freedom of players' creativity; they are teaming up with high-quality IPs to develop playability and enable the development of the game industry. Follow popular game titles as well as the development of high-quality IPs and related collaborations.
Recommended attention: Tencent Holdings (00700), NetEase (09999), Perfect World (002624.SZ), 37 Entertainment (002555.SZ), Kaiying Network (002517.SZ), Giant Network (002558.SZ), Century Huatong (002602.SZ), Shenzhou Taiyue (300002.SZ), Handqu Technology (300315.SZ), Chinese Online (300364.SZ), Aofei Entertainment (002292.SZ), etc.
The main views of Huajin Securities are as follows:
Hot event: Recently, Miha Tour launched the “Genshin” UGC planning and recruitment project. ByteDance has also established a new game-UGC department, and its UGC editor development and UGC game platform construction positions are all open. At the recent Game Developers Conference (GDC), Tencent announced GiinEx, a self-developed game AI engine.
UGC empowers creative content and is highly sought after for its high degree of freedom
Huajin Securities said that the game UGC showed the advantage of giving players creative production ideas as early as the Mod era.
Early stages: Many mods don't create new ways to play, but rather fix the game's original shortcomings and fill in new content. For example, in classic games such as “The Elder Scrolls 5” and “Fallout 4,” there are many techniques used for mods to fix bugs or improve game performance and graphics; for example, in major games such as “Killing Spire” and “Dark Dungeon,” the new content is intended to replace the game's original art style and bring rich entertainment. Many major mods have been recognized by players as “up to the DLC level.”
Phase 2: As the mod ecosystem progresses and evolves, it even nurtures new game genres. For example, the “Warcraft 3” mod incubates the prototype of “Dota”, and the “DotA 2” mod also gave birth to “Dota Self-Propelled Chess,” both of which together led the MOBA era and the trend of self-propelled chess.
Stage 3: The “My World” mobile game went viral. The game itself takes up very little space on the main interface, and most pages point to UGC content of various topics, directions, and IPs. It involves not only changes in style and appearance, but also the diversification and expansion of gameplay.
At this stage: A new generation of UGC games, including “Egg Boy Party” and “Yuanmeng Star”, all aim to further lower the UGC threshold to guarantee the volume of UGC content and create a UGC platform within the game. Leading companies such as Miha Tour and Tencent have increased UGC to release a definitive signal, which is expected to further expand the game UGC circuit and continue the game life cycle; based on a high degree of freedom, it will provide players with more high-quality content.
Risk warning: policy uncertainty, UGC process falling short of expectations, potential risk of a high degree of freedom on the content side, etc.