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AIGC + Game: A Tremendous Change Is Leading the Chinese Game Industry

Artificial Intelligence Generated Content(AIGC) is driving a paradigm shift in content creation under the trend of virtual reality integration. With the maturity of AIGC, it is expected to greatly break through the shackles of the game production process and realize unlimited application and imagination.



Recently, thanks to the normalization of imported games and AIGC, Hong Kong stocks and A-share game sectors have soared.


In terms of Hong Kong stocks, Ourgame (06899.HK) rose by more than 13%, Bilibili rose by more than 8%, FriendTimes Inc. (06820.HK) rose by more than 4%, XD Inc. rose by more than 3%, and CMGE, NetEase, IGG, etc. followed suit.


In terms of A shares, Kunlun Tech led the gains. Giant Network reached a daily limit, Shengtian Network, Tom Cat, 37 Interactive Entertainment, G-Bits, etc. all rose sharply.




AIGC, or Artificial Intelligence Game Creation, has the potential to revolutionize the way games are developed and experienced. With powerful AI algorithms, game developers can create environments that are more realistic than ever before, with characters and objects that behave in more lifelike ways. AIGC can also be used to dynamically adapt to player behavior, making for a more personalized gaming experience that evolves over time.


In China, many major game manufacturers have begun to develop large models such as AI painting and NLP; medium and large game manufacturers are actively accessing existing large models to create exclusive small models; even start-up companies have already deployed them in the game field.


China International Finance Securities pointed out that AIGC technology and products have been partially applied in the game industry. In the medium and long term, it will have a strong role in promoting the cost reduction and efficiency increase of game production and the improvement of content quality; Uncertainty on the policy side is reduced, and the product cycle is expected to be the key driver of performance. We will continue to pay attention to the launch of game products.


Everbright Securities also stated that the recent concentrated release of AIGC progress is good for the game industry. Entertainment-oriented game content has a high tolerance for AIGC’s potential reliability risks, and its creativity and interactivity are highly recognized. AIGC’s promotion progress may exceed expectations. The game sector Valuations are expected to improve.


It is believed that in the near future, AIGC has the potential to bring more immersive, engaging, and enjoyable gaming experiences to players worldwide.


 

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