Source: Zhitong Finance

Guotai Junan released a research report stating that “AI Generates 3D” is an important part of this year's generative AI development that has had an important impact on game tracks. In particular, 3D data assets and technology continue to accumulate and “AI Generated Video” is developing rapidly. The breakthrough in “AI-generated 3D” will have a substantial impact on the game industry. This change is reflected not only in reducing costs and increasing efficiency, but also by changes in game industry trends. If “AI Generates 3D” breaks through, it will benefit four directions at the level of the game industry.

Guotai Junan's main views are as follows:

The game industry is showing a trend of 3D, UGC, and fragmentation, and “AI Generates 3D” is highly related to this trend

① 3D modeling has become mainstream in leading game products; ② Gameplay games account for a high proportion of leading game products; platforms provide basic gameplay, and users produce their own content; ③ Small game platforms continue to rise. At present, it seems that the application of generative AI technology in the game industry has not yet reached the core 3D production process. If “generative 3D” technology is broken through, the B-side can change the game production process, increase the product iteration rate, and on the C-side, it can generate real “low threshold, high quality” game UGC tools, and enrich the game UGC supply ecosystem.

From the perspective of data and technology accumulation, “AI Generated 3D” may have reached the edge of breaking through

In terms of data, AOUSD, which is committed to standardizing 3D formats, continues to expand its membership, and NVIDIA is also actively improving the relevant ecosystem. The official plan is to complete feedback on core specifications by the end of 2024. Objavers-XL has reached the same material scale as ImageNet, and has already spawned some products; in terms of technology accumulation, AI tools such as “video generation” are rapidly developing, and “3D generation” can mutually promote each other. Dust3r in recent years, TripOSR,$NVIDIA (NVDA.US)$ACE,$Alphabet-A (GOOGL.US)$Genie has all shown breakthroughs in one area.

If “AI Generates 3D” breaks through, it will benefit four directions at the level of the game industry

① “Open World” games that require a large number of 3D assets will benefit first; ② Improved “AI UGC” tools will spawn more and better game UGC; ③ Based on “creative implementation,” some game companies may focus on discovering, connecting, and distributing, and operating outstanding potential projects. Small game platforms are also expected to become “game versions of Douyin”, further expanding in value; ④ MR platforms that require 3D assets may improve basic settings and obtain new ways to interact.

It is recommended to focus on the following ideas:

1) Continue to value the value of mini game platforms and recommend companies with excellent distribution and operation capabilities$Kingnet Network (002517.SZ)$, the target of the benefit$Zhejiang Century Huatong Group (002602.SZ)$.

2) Recommended for large game companies with outstanding 3D development capabilities or high-quality IP$37 Interactive Entertainment Network Technology Group (002555.SZ)$,$Perfect World (002624.SZ)$,$G-bits Network Technology (603444.SH)$, the target of the benefit$TENCENT (00700.HK)$,$NetEase (NTES.US)$/$NTES-S (09999.HK)$.

3) Game companies that actively deploy AI benefit from their targets$Giant Network Group (002558.SZ)$,$Ourpalm Co.,Ltd. (300315.SZ)$,$Kunlun Tech (300418.SZ)$.

4) Companies related to the MR and 3D asset industry chains, benefiting targets$Hengxin Shambala Culture (300081.SZ)$,$Silkroad Visual Technology (300556.SZ)$,$Guangzhou Frontop Digital Creative Technology (301313.SZ)$,$Visual China Group (000681.SZ)$.

Risk warning: The progress of “AI-generated 3D” technology is slowing down, and related companies' project products have fallen short of expectations.

Editor/jayden