Job Recruitment Website - Job seeking and recruitment - 2023 Game Industry Trend Report: 11 Potential Areas and 4 Development Trends: Insights and Analysis on the Potential of Multiple Companies

2023 Game Industry Trend Report: 11 Potential Areas and 4 Development Trends: Insights and Analysis on the Potential of Multiple Companies

Recently, the China Game Industry Annual Conference Industry Trend Development Forum was held in Guangzhou. Association leaders and many business representatives delivered speeches. On the same day, the organizer Gamma Data released the "2023 China Game Industry Trends and Potential Analysis Report" at the forum. The key contents of the report are as follows:

Industrial Current Status

·Actual Sales in China's Game Market Revenue drops for the first time in the past 10 years

·Financing events of Chinese game companies will drop by 50% in 2022

·The number of new product outputs of leading game companies will decrease by 41.8% in 2022

< p>Related insights

·Developing diversified monetization and business models

·21.4% of users’ spending on actual games does not reach the acceptable upper limit

·Looking A new way to expand and cultivate users

·Over 50% of users’ payment behavior is concentrated on the products they like most/have played the longest time

·Use high-quality products to drive changes in user consumption behavior

·High-quality games are expected to increase the payment level of more than 70% of users

·With the help of game technology, drive product experience upgrades and breakthrough development

·Games have become An important contributor to technological progress in industries such as chips, high-speed communication networks, and AR/VR

Key potential areas

·Mixed monetization: 41.7% of console/stand-alone game users are willing to accept in-app purchases. 34.4% of mobile game users are willing to accept the buyout system

·Industrial chain expansion: 47.2% of users have purchased peripheral products in recent years, of which over 50% purchase more than three times a year

· Console/stand-alone games: About 60% of users play weekly or more frequently

·Key segment areas: 8 types of gameplay and 4 types of themes have significantly increased revenue compared with 3 years ago

·"Game+": 96.03% of the public surveyed have been exposed to "Game+", and most of the public are still interested in it

·Cross-platform: Ported cross-platform games are liked by 35.6% of users , and the proportion of users who dislike it is the lowest

·Game engine: value continues to leak out

·Game AI: can be applied to research and development, human-machine battles, plug-in monitoring, etc.

·Cloud games: Game cloud transplantation, cloud native games, and cloud game derivative applications have potential

·Metaverse: Scene expansion and immersive experience promote the industry's upgrade to "games as a platform"

p>

In addition, the report selects some companies with obvious development potential and analyzes the sources of their potential.

Development status quo: Poor performance in 2022, but promising future

Current status 1: Actual sales revenue has dropped for the first time in the past ten years, new product output has slowed down, and financing difficulties have increased. Factors affecting industrial development

The development status of China's game industry will change in 2022. Starting from March 2022, the actual sales revenue of the industry will gradually turn from growth to decline, which will eventually lead to a nearly 10% decline in actual sales revenue for the whole year of 2022. first contraction in a decade. The decline in industry revenue is affected by multiple factors, including long-term factors such as the slowdown in new product output and increasing difficulty in financing, and short- and medium-term factors such as the decline in the overall time users spend at home. However, from a longer-term perspective, China's game industry has still achieved certain development results, such as relying on high-quality products to continue to increase its appeal to users. With user support, the industry still has good development prospects and certain room for growth.

Current situation 2: Financing events of Chinese game companies will drop by 50% in 2022, and actual market revenue and future expectations will affect the flow of funds

The performance of the game industry in the investment and financing market in 2022 also remains to be seen Intensified, the number of financing events of Chinese companies dropped by 50% year-on-year, and the stock market performance was also inferior to the overall performance. The reaction of the investment market is usually affected by actual market income and future expectations, which has also become a major factor in the flow of capital inside and outside the leading industry. For example, in 2020, the game industry market revenue increased significantly, the investment market's confidence in the game industry was boosted, and game companies continued to have abundant cash flow, which in turn led to a rebound in industrial financing events in 2021. However, due to the impact of the subsequent decline in market revenue, industrial investment and financing in 2022 Down again. However, with the improvement of the industrial environment and the boost of development expectations, the capital performance of the game industry is expected to be further improved in the future.

Current situation three: The industry is faced with the challenge of talent reserve. The demand for high-quality talents is high but external pressure continues to increase

Poor market performance is also transmitted to the practitioner level. In terms of talent reserve, Brings challenges to businesses. On the one hand, the demand for high-quality talents in the industry is still high, and most companies have indeed absorbed more potential talents with high basic abilities; but on the other hand, the difficulty of the industry in recruiting potential talents continues to increase, with salary costs, external funds, and traffic flow Cost and other pressures have affected the overall operations of enterprises. Under the idea of ??reducing costs and increasing efficiency, it is common for industries to lay off employees, adjust salaries, and shrink recruitment plans in 2022, including many leading companies. Generally speaking, the industry's talent training ideas are tilted towards cultivating internal talents, giving priority to absorbing high-value talents, and exploring talents with high cost-effective potential.

Current situation 4: It is difficult to innovate new products, and it is difficult for leading products to solidify to provide strong support for the market. The output of new products of leading companies has dropped by 40%

The phenomenon of new products being difficult to effectively support the market will continue in 2022 It is more obvious in 2017. At the same time, product innovation is difficult and the characteristics of head products are solidified, making it more difficult for new products to break through. The difficulty of product innovation continues to affect the process of high-quality products in the industry. At this stage, the research and development ideas of innovative products have also changed. On the one hand, products need to learn from the research and development experience of multiple products to ensure the maturity of the product gameplay and the success rate of commercialization, but also to ensure that the product It has its own characteristics at the gameplay level, and this balance point is difficult to control; the characteristics of the solidification of head products are mainly reflected in the fact that the products that provide the main income are still old products that have been online for many years, occupying a large number of users, but it is difficult to provide the market scale. Effective increment, and some products gradually enter the decline phase of the life cycle. The solidification of leading new products is also mainly affected by the decline in the number of new product outputs. Among them, the number of new product outputs of leading companies will decrease by more than 40% in 2022, which is much higher than the industry average. The impact of new products of leading companies on the market The effect is greater.

Development trends: 4 trends may emerge

Based on the current situation and causes of the decline in industrial market size, Gamma Data believes that the following directions have formed trends and are expected to develop further in the future.

Trend 1: Developing diversified monetization and business models

There is still room for improvement in user payment capabilities. Judging from the survey results, 21.4% of users’ actual payment is lower than the acceptable payment limit, and the difference between the two is mainly affected by users’ recognition of paid content. Among them, 56.9% of users believe that there is nothing worth recharging.

In the future, providing users with payment points and payment methods that are in line with their value perception will help users pay for upgrades, and it will also become inevitable to change the thinking mode of some users for recharging, for example, some users are averse to paying for numerical values. status, allowing them to pay to unlock premium game content and better network, hardware and other gaming experiences.

Trend 2: Looking for new ways to expand and cultivate users

The methods of finding and retaining high-value users also need to be adjusted. Although the average number of games per year by users is still large, paying Such behaviors are increasingly concentrated on a few products, which means users are more loyal to their preferred products. For enterprises, this means that they need to more accurately control all aspects of user acquisition, operation, return, etc., so that users can improve their favorability of their products from all levels. Otherwise, users will be more likely to be attracted by competing products. Therefore, the number of customer acquisitions is no longer the core indicator pursued by enterprises, and it is necessary to cultivate users' favorability during the customer acquisition stage. Later, it is necessary to increase investment in operations, return, etc., and to find new ways to expand and cultivate users. , and then turn its own products into the most preferred choice for users.

Trend 3: Use high-quality products to drive changes in user consumption behavior

User payment behavior is greatly affected by high-quality products. The survey results show that quality-related content accounts for 20.2% of the reasons for the increase in user payments. This means that the role of quality is not limited to the income distribution within the industry, but also has significant benefits in expanding the overall scale of the industry. It is worth noting that the market potential of premium products has not been fully released at this stage. The main reason is the gap between user expectations and corporate supply. As the gap between the two narrows, premium products are expected to increase the payment level of more than 70% of users. .

Trend 4: Using game technology to drive product experience upgrades and wall-breaking development

The game industry has been closely related to science and technology since its birth, and the relationship between the two has increased rapidly in recent years. , judging from the results, games have become an important contributor to technological advancements in industries such as chips, high-speed communication networks, and AR/VR. The underlying reasons for the closer relationship are: on the one hand, the original intention of using technology to improve users' gaming experience has not changed, and is more urgent. Higher game science and technology levels can help meet users' entertainment needs; on the other hand, games can Helping the scientific and technological field to become self-reliant, cultivating scientific and technological talents, and using technology and talents as a medium to help games achieve results in more fields, its value is increasingly recognized at the national level. Research on game technology is also continuing to advance. In July 2022, the report "Game Technology - New Technology Clusters in the Process of Digital-Real Integration" was jointly released by the China Game Industry Research Institute and the relevant research group of the Chinese Academy of Sciences. , clearly put forward the definition of "game technology", and then help the game industry better tap social value and economic value.

As mentioned above, the game industry has promoted the development of several scientific technologies in the process of iteration, and has gradually formed the proper term game technology. However, its value is not only released through the game industry. Game technology will carry out multi-dimensional value expansion centered on serving people's lives and meeting people's needs. In the future, game technology is expected to improve people's quality of life in the following ways: In the short to medium term, game technology will enhance users' gaming experience and optimize production in many fields such as culture, tourism and cultural security, industry and automation, film and television production, smart cities, medical and pharmaceuticals, etc. elements and business systems, while giving birth to emerging business models, thereby promoting the application of game technology in other industries, and increasing other industries’ attention and demand for game technology; in the long term, as games and technology promote each other and the depth of integration increases, The game will serve people with subversive experiences and life changes in the form of super digital scenes, metaverses, etc.

Key potential areas:

11 areas with great potential

Based on the development trend of the industry, Gamma Data believes that the following areas may have obvious development potential .

Area 1: Mixed monetization

Hybrid monetization is expected to become a breakthrough in diversifying product monetization for two main reasons:

Games shift to mobile games, customer acquisition changes Environmental changes such as extensive to refined, products from low quality to high-quality products ensure the competitiveness of enterprises in each period. At this stage, Sanqi Interactive Entertainment is shifting to a digital-real integration and overlay layout focusing on the next prediction game technology; dataization As for the direction of thinking, the company has formulated the idea of ??building and iterating intelligent platforms based on data, and then relying on the intelligent platform to improve the output probability of high-quality products. The idea has the characteristics of being difficult to start but the value continues to amplify after it is formed. At this stage, it is exploring new subdivisions and other aspects. play a role; in terms of network resources, Sanqi Interactive Entertainment has completed the work of connecting a large number of resources in series, thereby forming a joint force to maximize product demand. For example, companies can provide a large number of testing opportunities for products in a short period of time. It is expected that the ability to launch high-throughput products will continue, and the company's core capabilities will continue to be improved.

The game business helps the industry break through boundaries and raise the upper limit of its potential

The company’s leading position is expected to expand from games to entertainment

Although the company has potential in the game industry, it Ma Data believes that the real long-term potential of Sanqi Interactive Entertainment lies in breaking through industry boundaries, that is, completing the transformation and upgrading from a leading gaming company to a leading entertainment company. This is because there are inherent similarities between various entertainment industries. On the basis of opening up a single industry, if companies can deeply combine the experience of opening up with the characteristics of other industries, it is possible to achieve industry breakthroughs. The core capabilities formed by Sanqi Interactive Entertainment in the game industry include both universal experience and methodologies for exploring industry characteristics, which may become the cornerstone of the company's transformation into full entertainment; at the same time, Sanqi Interactive Entertainment has already developed a deep understanding of the characteristics of other entertainment industries. Part of this accumulation is mainly achieved through years of investment in entertainment companies such as Yuanverse, film and television, animation, and artist management. In the future, Sanqi Interactive Entertainment may use the industrial experience accumulated by investing companies as an entry point to use data-based ideas to quickly locate the key points and breakthroughs in new industries, and then rely on network resources to form synergy and single-point breakthroughs to gain a foothold in the new industry and establish Gradually develop from new players to leading companies.

Zulong Entertainment

The game engine has potential

The company has more experience, a strong willingness to iterate, and a wide talent pool

Zulong Dragon Entertainment has potential in game engines, subdivisions, etc. Game engines are the focus of many leading companies. Zulong Entertainment’s main advantages are: first, it has extensive application experience. As of the end of January 2023, it has developed 5 products based on Unreal Engine 4, ranking first in the industry in terms of number. Second, the willingness to upgrade and iterate is strong and fast. For example, when Unreal Engine 4 is still a representative of high quality, that is, when Zulong Entertainment still has advantages, the company has planned to introduce Unreal Engine 5 and become the first in China. Game companies introduced; third, the reserve of technical talents is relatively comprehensive and rich. For example, the company's R&D personnel have accounted for about 80% for many years, and the technical talents sought by the company are distributed in more than ten fields such as Unreal Engine 4, rendering, and Houdini. .

Technical capabilities drive the release of advantages in segmented fields in two phases

The first phase is in specific tracks; the second phase is in multiple tracks

At the same time, technology Capabilities may stimulate the potential of enterprises in subdivided fields. Gamma Data believes that this potential will be released in two stages: In the first stage, the potential will be released in categories that highly combine technical capabilities and playability, such as shooting, Action category. This is because the core advantages of Zulong Entertainment are highly concentrated in the technical field. However, at this stage, the achievements in content shaping, numerical system and other aspects are difficult to be at the same level as the technical capabilities. As a result, some games are highly popular in the early stage, but their later performance does not meet expectations. . Categories that highly combine technical capabilities with playability can help Zulong Entertainment maximize its strengths and avoid weaknesses, strengthen its shortcomings, and maintain synchronized progress. As Zulong Entertainment becomes more experienced in content creation and other fields, the company's potential in subdivisions will enter the second stage, that is, it will blossom in different areas. At this stage, technical capabilities will help companies break out from competing products in customer acquisition and other aspects, and will play a role in user retention in subsequent operations along with content shaping and numerical systems. Therefore, when Zulong Entertainment enters the second stage, the company's market performance may increase significantly in the short term.

Yi Shijie

Yi Shijie's market penetration rate in simulated economic commodities will continue to increase

Existing experience will be applied to overseas markets and other segments. Realize the potential

Relying on products such as "Business Master" and "I am the Big Boss", Yishijie has taken the lead in the simulated economic commodity category. In the future, existing experience will increase the market penetration of the simulated economic commodity category. rate, expand overseas markets, and enter other subdivisions to increase the potential of Yishijie.

In terms of market penetration, Yishijie is not satisfied with its current results, but continues to strengthen the category moat, such as exploring the monetization potential of mini-program versions of games. When Yishijie can open up all aspects of the simulated economic product category, the company will be able to target Launch products to further increase market penetration; in overseas markets, there is a certain universality in the preferences and mining methods of users in various places, which means that the layout experience accumulated by Yishijie in China is expected to be better replicated overseas, and then achieve The market performance is similar to that of the domestic market. This has been initially confirmed in "Business Master". At the same time, considering the overseas planning of enterprises, the potential release of overseas markets may accelerate; in terms of entering other subdivisions, Yishijie is based on the simulated economic commodity category. The accumulated capabilities of identifying potential areas, analyzing user preferences, guiding product research and development, and realizing long-term operations are expected to be applied to other subdivided areas, allowing Yishijie's leading position to expand from simulated business to more fields.

Shaping the cultural connotation of games to prepare for longer-term and profound development potential

It is expected to achieve multi-party win-win for enterprises, products, users and society

In addition , Yishijie is preparing for a longer-term and deeper development potential, that is, shaping the cultural connotation of game products. When the cultural connotation is rich enough, it will form a game-centered expansion into multiple entertainment fields, and realize the realization of enterprises, products, and users. , a brand ecology that is win-win for all parties in society. By then, for Yishijie and its products, its brand, number of fans, user stickiness, and revenue sources will all increase greatly; for users, they will gain entertainment, self-improvement, and enrich knowledge in the process of participating in the brand ecology. Reserves and other diverse values; for society, cultural heritage and national brands will increase their influence in the process of linking with game products, such as being accepted by young users in a more practical and vivid form, or spreading China with products overseas. culture. At this stage, Yishijie is mainly shaping the cultural connotation of "I am the Big Boss". When the layout becomes systematic, it is expected to be promoted on a large scale among its products.

China Mobile Games

The "Fairy Sword" IP is expected to release multi-dimensional potential such as cross-platform, cloud gaming, and metaverse

With leaders such as Penguin Film and Television and Perfect World Enterprise cooperation or strengthening output effects

China Mobile Games has development potential in the fields of industrial chain expansion, cross-platform, cloud games, console/stand-alone games, metaverse, etc. At the same time, Gamma Data believes that the above fields The potential will be released mainly from two directions. Unleashing the potential around the "Legend of Sword and Fairy" IP is one of the directions. This is because, first of all, corporate planning has been advanced for a long time. Starting from 2021, China Mobile Games will launch a relatively clear IP plan, and relevant results are gradually produced; secondly, China Mobile Games has a relatively three-dimensional planning field for IP, which not only targets different users, such as those in the fields of games, novels, and film and television, but also focuses on market prospects involving technologies, such as traditional games, VR games, and the metaverse. Finally, China Mobile Games has accumulated The magnitude and quality of resources are expected to improve the final presentation of IP. For example, around the "Legend of Sword and Fairy" IP, China Mobile Games has cooperated with many leading companies such as Penguin Film and Television, Bilibili, iQiyi, Shandong Film and Television, and Celadon Games. Collaborate.

Relying on investment to strengthen underlying capabilities

In the past three years, we have focused on areas such as artificial intelligence, cloud technology, and data security

Industrial chain expansion, cross-platform, and cloud games , console/stand-alone games, and the potential of the metaverse are also expected to be released in more products and IPs of China Mobile Games. This is because China Mobile Games is continuing to accumulate underlying capabilities. When the underlying capabilities can be used on a large scale for the company's products or when the industry faces an inflection point, the accumulation of existing capabilities is expected to help the company maintain its market position. In terms of the way of accumulation of underlying capabilities, China Mobile Games increases the speed of accumulation through investment. In addition to game-related companies, China Mobile Games relies on the investment institution "Guohong Jiaxin" to strengthen its binding to the entertainment industry and other high-potential industries; the strengthening of underlying capabilities In terms of direction, China Mobile Games pays high attention to industry development trends. For example, AIGC, artificial intelligence, cloud technology and other potentials have been recognized by the industry in recent years. China Mobile Games relies on investment institutions to strengthen its layout in the above fields.

Celadon Games

Investment in research and development in terms of gameplay integration, language style and other aspects to strengthen product features

Refined operations to obtain more natural traffic users

The development potential of Celadon Games is mainly reflected in its ability to integrate research and operation. In the research and development process, Celadon Games has strong control capabilities in terms of gameplay integration, differentiated content, and numerical systems. For example, self-developed products such as "The Strongest Snail" and "Time Travel Agency" show an art style and world view that are rare in the industry. and humorous text style, and then use content innovation to create differentiated product features; in terms of operational capabilities, Celadon Games can customize the operational content of each game based on factors such as gameplay characteristics, channel characteristics, and players’ own interests, so as to fine-tune The centralized operation method has acquired more natural traffic users, and some users have become fans of the company, thereby helping more products to improve their customer acquisition capabilities. For example, "The Magic Project" still performs well in the market even with a small number of purchases. .

Focus on high-quality content to build long-term operations and innovative marketing capabilities

It is expected to expand content advantages to the global market

Celadon Games’ ability to control high-quality content Being at the forefront of gaming companies has also enabled it to build significant long-term operations and innovative marketing capabilities.

At the long-term operation level, Celadon Games first continuously supplements the gameplay content of the product, such as updating the "Rise of the Origin Beast" version, linking "Baolian Lantern", etc., all of which have made significant innovations at the gameplay level, which have a stimulating effect on product sales. Significantly. At the same time, Celadon Games proactively carries out interactive operations with users based on content. For example, after adopting a panda in the name of a user and carrying out charity activities, it simultaneously launches a panda-themed version update to enhance users' sense of participation in charity actions in the form of games. At the level of innovative marketing, "The Strongest Snail" has cooperated with many celebrities to produce content of different styles, driving the product to achieve breakthroughs on different platforms. At the same time, related capabilities have also been applied to overseas levels, such as hiring comedians in Japan to promote games. The marketing behavior of using high-quality content as the carrier also reflects Celadon Games’ ability to control the cultural preferences of different countries and groups. In the future, Celadon Games is also expected to further expand its content advantages to more overseas markets and help more agent products achieve results.

Tanwan Games

Numerical related fields are expected to continue to have high success rates

Data and intelligence support companies to conduct research and operation with lower risks and higher returns Products

Tanwan Games has potential in segmented fields and industrial chain expansion. In terms of subdivided fields, Tanwan Games may continue its historical achievements with a high success rate, and numerical-related fields require more focus, such as the MMORPG that has already been demonstrated. Dataization and intelligence are the guarantees for a higher product success rate. The main role of dataization is to help companies identify and improve the potential upper limit of products. This part is mainly based on the "Hetu" system that can automatically generate analysis tags and the game analysis team. Realization; The main role of intelligence is to realize as much product potential as possible. This part is mainly realized based on the "Va Book" system and marketing experience of executing the original plan with low error. In other words, with the blessing of data and intelligence, companies can develop and operate products with a return rate higher than the industry average at a risk lower than the industry average. The space between the two is the long-term potential of Tanwan Games.

The brand development capability is relatively systematic, which is used to consolidate existing brands and tap potential brands

The brand awareness and product penetration rate of "Tanwan Games" have been improved, and fast food and trendy brands have The potential to steadily develop the game industry chain expansion mainly lies in providing customers with brand development services. To a certain extent, it can be seen as packaging the methodology accumulated by Tanwan Games in the segmented fields into separate products and serving more game developers. Compared with Completely for self-use, the advantages of developing this business lie in increasing operating income, improving net profit margins, and feeding back business iteration and upgrades. At the same time, Gamma Data believes that the long-term potential of this business mainly lies in: first, the business demand is relatively strong. The performance of many game products that does not meet expectations is not due to the lack of technical capabilities of game developers. The main reason is the failure to identify the true identity of users. Express and explore the potential demands of users, and Tanwan Games’ services can quickly make up for its shortcomings; secondly, competitive pressure is relatively small, because technology-driven user insights need to be based on big data and accumulate a lot of versatility. Experience and the launch of more recognized cases, in other words, a higher threshold for layout; third, there is a customer source advantage. Tanwan Games itself is an important participant in the game industry, and its understanding of the industry will be transformed into a brand that attracts game companies. First, in the future, it is also expected to obtain similar blessings in areas such as fast food and trendy entertainment.

Tuyou Games

Customer acquisition channels and methods continue to explore and strengthen distribution capabilities

The accumulated experience in global operations is expected to expand to more subdivisions

Tuyou Games has development potential in terms of global operations and segmented fields. The global operation mainly focuses on high-quality content and multi-channel layout, and continues to strengthen the active attraction of users. In terms of business details, Tuyou always pays attention to the latest customer acquisition methods and channels in the market. As early as 2014, Tuyou tried cross-industry cooperation and linked up with multiple brands to acquire users. In 2015, Tuyou gave full play to the leisure and competitive characteristics of its products and held a number of leisure and competitive events. In 2018, in the early stages of the development of WeChat mini-games, a number of Tuyou products were launched to better capture traffic from emerging channels. With the rapid development of short video entertainment, Tuyou has used the Douyin platform to further strengthen its content marketing capabilities, promote game content through official interactions, content creation and other forms, and attract more users to pay attention to the product, while cultivating More anchors promote the spread of secondary content outside the game. The continuous exploration of customer acquisition channels and methods has also continued to strengthen Tuyou's distribution capabilities and formed a systematic global business model, which has also become an important reason for its product to maintain its life cycle. At the same time, it will also help Tuyou expand its user acquisition and operation ideas to other areas, such as card categories, and then open up new tracks. This is also the main reason why Tuyou has potential in more subdivisions

Card games are expected to become a new growth point

The existing research and operation system and talent expansion will help explore overseas markets

In terms of subdivisions, Tuyou games are expected to be Continue to develop new advantages in the card category and strengthen the exploration of overseas markets. At the level of mid-to-severe games, Tuyou has launched two global card products, both of which have achieved certain results, and relevant research and development experience is expected to be applied in more products.

In terms of layout and segmentation, Tuyou also has a number of advantages that can continue to play a role. On the one hand, its continuous accumulation of experience in all-region operations is expected to further strengthen the marketization results of its products. All-area operations will be more prominent in the global market with increasing traffic competition. More critical. On the other hand, companies continue to increase their talent reserves in the above categories and expand global talent resources, which is expected to lay the foundation for global R&D and operations of different types of products.

Shengtian Network

The ability to mine user value may become an important potential point of Shengtian Network

Value can be released both online and offline

Shengtian Network's user value mining ability deserves the industry's focus, especially when the development of diversified monetization and business models has become a long-term trend, the user value mining ability may become one of Shengtian Network's important potential points. The competitive advantages of Shengtian Network in the field of mining user value mainly lie in: first, Shengtian Network’s resources are relatively rich and three-dimensional, and its ability to connect resources is strong; second, Shengtian Network mainly assumes the role of a service provider in the industry, which means It means that enterprises have stronger will and more experience to provide required services to partners; thirdly, judging from the layout in recent years, Shengtian Network continues to increase the monetization ability of its own resources at the user level and derives more Potential scenarios for tapping user value, such as the layout of the e-sports hotel business, are scenarios that can simultaneously release online and offline value. On this basis, there is also room for integration with game exhibitions, derivatives, events and other fields.

The field expansion of game technology is another source of potential

R&D talents, technology layout, and digital applications support the realization of corporate potential

Relying on game-related technologies, services will be better Multi-industry and enterprises are another potential area for Shengtian Network. The former can bring Shengtian Network much higher potential than the gaming industry, while the latter can feed back Shengtian Network’s industrial status and technical level. At this stage, from the perspective of technology emphasis, the number of R&D personnel of Shengtian Network has remained above 50% for a long time, and the level of emphasis is relatively high; from the perspective of technical reserves, Shengtian Network has advanced technologies in AR, big data technology, cloud computing, etc. The technology has been laid out and is relatively rich; from the content point of view, Shengtian Network's IP business has continued to grow, and its new investment in issuance business has also achieved certain results, and the introduction of IP and content has accelerated; from the perspective of the layout process, Shengtian Network has participated in the development of "cloud "Shang Nankong" is a digital application that tests the integration of games and cultural tourism industry. At the same time, it develops a self-developed Metaverse interactive space that can conduct online large-scale brand live broadcasts and interactive activities. Shengtian Network, which owns multiple classic IPs and has scene empowerment, content marketing and SaaS service capabilities, is expected to make great strides in the metaverse and social arena.