When will domestic games achieve success?

After much anticipation, it's finally here.

With the global simultaneous release of 'Black Myth: Wukong' at 10 am on August 20, countless gamers cheered. Within just one hour of its official launch, 'Black Myth: Wukong' topped Steam's list of the most popular games, with over 1 million concurrent players. Ten hours after its launch, the number of concurrent players surpassed 1,875,900, making it the third-highest on Steam's list of all-time concurrent players.

As of 8 pm on August 20, 'Black Myth: Wukong' had sold over 3 million copies on Steam, and with sales on Eegame, Epic, and PS platforms, total sales exceeded 4.5 million copies, generating over 1.5 billion yuan in revenue.

Goldman Sachs predicts that under optimistic conditions, 'Black Myth: Wukong' could sell up to 20 million copies on Steam, generating over 5 billion yuan in revenue, excluding sales on WeGame and PlayStation platforms.

Image source: Weibo screenshot

As the first high-quality domestic 3A game, the release of 'Black Myth: Wukong' undoubtedly carries exceptional significance. Goldman Sachs noted in its latest report that this represents a significant turning point for China's console game industry and a crucial step for Chinese games to go global, potentially stimulating investment in the Chinese game industry, especially 3A games.

01. Who has Monkey King 'irked'?

The launch of 'Black Myth: Wukong' was like dropping a boulder into a calm lake, sending ripples far and wide, igniting market enthusiasm instantly.

As early as the pre-sale stage (from June 8 to the end of July), the game sold 1.2 million copies across all platforms, generating nearly 400 million yuan in sales, breaking domestic game pre-sale records. On Steam, it quickly topped the global best-selling list and dominated charts in 12 regions, including the United States, Singapore, Thailand, Canada, Brazil, and Italy, truly going 'viral' worldwide.

Image source: Steam screenshot

'Black Myth: Wukong' offers four versions, including a Digital Standard Edition for 268 yuan, a Digital Deluxe Edition for 328 yuan, a Physical Deluxe Edition for 820 yuan, and a Physical Collector's Edition for 1998 yuan. The physical editions sold out on JD.com within five minutes of opening full pre-sales, demonstrating players' enthusiasm and anticipation for this domestic 3A game.

In the capital markets, the popularity of 'Black Myth: Wukong' sparked a wave of excitement on A-shares. On August 20, related stocks such as Huayi Brothers, Zhejiang Publishing United Group, and CITIC Press performed impressively on the game's launch day. Stocks like Qitian Technology (300061.SZ) and CITIC Press (300788.SZ) closed with 20% gains, while Huayi Brothers (300027.SZ) hit a 20% intraday high. Other stocks like Zhishang Technology (301486.SZ), Leyard (300296.SZ), and Zhejiang Publishing United Group (601921.SH) also saw significant gains.

On August 21, stocks related to 'Black Myth: Wukong' continued to surge, with Zhejiang Publishing United Group and Shanxi Expressway opening at the daily limit, while CITIC Press, Hanyi Shares, and China Travel Service Holdings Group opened higher.

Image source: Eastmoney screenshot

These companies have direct or indirect connections to 'Black Myth: Wukong'. For example, Huayi Brothers holds a 5.17% stake in Hero Entertainment, an early investor in Game Science, the developer of 'Black Myth: Wukong'. Zhejiang Publishing United Group, as the game's publisher, is responsible for content review, publication declaration, and ISBN application. CITIC Press participated in the publication of the game's artbook, while Leyard provided technical support to the game's development team.

Interestingly, Shanxi, as the main filming location for the game, also received a surge of attention due to 'Black Myth: Wukong'. Even non-game-related companies like Shanxi Expressway (000755.SZ) saw their share prices rise significantly. Stocks like Tibet Skyway, Eastim, and Yunlilili have also been associated with the game, becoming 'concept stocks' for 'Black Myth: Wukong'.

Some netizens even suggested that Huai'an, the hometown of 'Journey to the West' author Wu Cheng'en, should capitalize on this wave of popularity. In response, Huai'an Municipal Bureau of Culture, Radio, Television, Tourism, and Sports replied on August 20 that Huai'an Xiyou Amusement Park was actively contacting the game company to explore potential collaborations.

Image source: Weibo screenshot

Furthermore, several brands, including Luckin Coffee, Lenovo, and DiDi Qingju, have collaborated with 'Black Myth: Wukong'. Ahead of the game's launch on August 19, Luckin Coffee introduced a limited-edition 'Tengyun Americano' coffee product inspired by the game, complete with 'Black Myth: Wukong' paper bags and cup sleeves, attracting a large number of fans.

Even Luckin Coffee's Chief Growth Officer, Yang Fei, expressed surprise at the effectiveness of the collaboration, stating that 'surrounding merchandise sold out instantly nationwide, almost crashing the system, and male purchasing power this morning surpassed our team's expectations.'

Image source: WeChat Moments screenshot

The fact that 'Black Myth: Wukong' is favored by both consumers and the capital market underscores its influence. The game's popularity stems not only from its innovative interpretation of traditional culture but also from its high-quality production, precise market positioning and marketing strategies, as well as strong capital and team support.

However, the most crucial reason for the market uproar is perhaps the inherent value and significance of 'Black Myth: Wukong'. For years, the 3A game market has been dominated by foreign giants, while domestic games have largely been homogeneous 'pay-to-win' online games. Countless domestic players have longed for a high-quality domestic 3A game, and 'Black Myth: Wukong' fills this void.

02. Overcoming obstacles for launch

According to 'Qujiexieshangye,' 'Black Myth: Wukong' uses the globally leading 'Unreal Engine 5' for development, delivering cinematic-quality graphics, exquisite scenes, vivid characters, and smooth animations for an exceptional gaming experience.

Despite its massive 130GB file size and requirement for GTX 1060 or higher graphics cards with ray tracing support, which has left many players concerned about their computer's capabilities, this also underscores the time and effort required to produce a visually stunning 3A game.

Image source: 'Black Myth: Wukong' official website screenshot

Back in 2018, Shenzhen Youke Interactive Technology Co., Ltd. (hereinafter referred to as 'Game Science Company') quietly initiated the project for 'Black Myth: Wukong,' which was publicly announced for the first time in 2020.

According to 'Qujiexieshangye,' Game Science Company was founded in June 2014, with all its founding team members coming from Tencent. In its early stages, Game Science received investments from Hero Entertainment (now known as Hero Game Technology Co., Ltd.) and Tencent.

According to Tianyancha data, the actual controller of Game Science is its founder Feng Ji, holding a 38.76% stake. Senior executives hold a 27.36% stake through the Shenzhen Youke Interactive Enterprise Management Center, Hero Game holds a 19% stake, employees hold a 9.88% stake through the Shenzhen Youke R&D Enterprise Management Center, and Tencent holds a 5% stake.

Image source: Tianyancha screenshot

Of course, developing this 3A game wasn't as smooth as initially thought. One of the first challenges was choosing a theme. Although the team wanted to create a game with Eastern cultural characteristics, they weren't initially clear on the specific theme. After lengthy discussions, the idea of a Journey to the West theme emerged as the most popular and emotionally charged option, ultimately leading to its selection.

However, 'Black Myth: Wukong' does not simply retell the story of 'Journey to the West.' Instead, it draws inspiration from the classic tale, adopting a unique perspective and plot to reimagine and deeply explore the iconic character of Monkey King in a modern context.

Notably, the game incorporates intangible cultural heritage elements such as Shaanxi ballad singing and features real-life scans of various famous scenic spots across China, including the Jade Emperor Temple in Shanxi, Dazu Rock Carvings in Chongqing, and Shisi Temple in Zhejiang. This resonates deeply with players, igniting a cultural connection and a sense of exploration and immersion.

Image source: 'Black Myth: Wukong' official website screenshot

An even greater challenge lay in engine technology. The team abandoned familiar development engines in favor of Unreal Engine, requiring them to learn from scratch, increasing development difficulty and time. Furthermore, to ensure creative ideas translated into reliable development work and efficient, high-quality operation across multiple development pipelines, the team faced shortages of professional talent.

Similar to the 99 trials and tribulations faced by the pilgrims on their journey to retrieve Buddhist sutras, the team overcame numerous obstacles. On August 20, 2020, the first trailer for 'Black Myth: Wukong' was unexpectedly released, garnering immense popularity and sweeping across social media and short video platforms, laying the foundation for its explosive success four years later.

However, the 'Black Myth: Wukong' creative team has also faced controversy due to inappropriate remarks. Founder Feng Ji's vulgar comments on Weibo caused offense to some netizens, even earning him criticism for 'making lewd jokes' and 'insulting women,' triggering a wave of public opinion.

Image source: Weibo screenshot

Even on the eve of 'Black Myth: Wukong's' launch, the controversy persisted, with some voices accusing the game of 'consuming classics' and 'pandering to nostalgia.' However, Feng Ji candidly stated, 'Just because you put a 'national style' label on it, doesn't mean you have a 'get-out-of-jail-free' card. You actually have a greater responsibility and should tread carefully.'

Image source: Xinhua News Agency 'Yangsheng' video screenshot

03. Domestic games' 'pilgrimage'

'Black Myth: Wukong' is widely recognized as the 'first true domestic 3A game.' Looking back at the development of China's game industry, it's clear that domestic 3A games have always been highly anticipated.

3A games typically involve substantial investments (A lot of money), resources (A lot of resources), and development time (A lot of time), featuring vast worldviews, stunning graphics, rich content, and profound storylines.

Early in the century, foreign 3A games like 'Grand Theft Auto III,' 'Halo: Combat Evolved,' and 'Final Fantasy X' had already matured through continuous development and optimization. However, compared to developed gaming regions like Europe, America, and Japan, China's video game industry started later, contributing to the difficulties in producing domestic 3A games.

Image source: Redbook screenshot

Although games like 'Qin Shang,' 'Pride of Nations,' and 'Blade & Sword' were once hailed as domestic masterpieces, they failed to meet the standards of true 3A games, due in part to various objective constraints.

For instance, regarding production costs, Feng Ji revealed that the development cost for each hour of gameplay in 'Black Myth: Wukong' exceeds 20 million yuan. With an estimated gameplay duration of over 20 hours, the total development cost could reach 300 to 400 million yuan, highlighting the immense difficulty and cost of 3A game development.

Image source: 'Black Myth: Wukong' screenshot

Moreover, talent shortages significantly hinder the development of domestic 3A games. Many promising game projects struggle to keep up with international standards due to a lack of outstanding game talent. Even Game Science encountered talent challenges during the development of 'Black Myth: Wukong,' resorting to releasing demo videos to attract more talent.

According to the '2023 Game Industry Mid-to-Senior Talent Insights' report by Maimai Gaopin, technical talent in the game industry is scarce, with a supply-demand ratio of only 0.53 for voice/video/graphics/image development talent, equating to two positions competing for one talent.

At the same time, the game industry is highly demanding, making it difficult to recruit suitable talent even with high salaries. After the popularity of "Black Myth: Wukong", many Game Science team members were "targeted" by headhunters on recruitment websites like Maimai, leading some employees to be bothered and directly label themselves as "not looking for work" or "do not disturb for recruitment" on the platform.

Image source: Maimai screenshot

In fact, the competition for 3A games both domestically and internationally is essentially a competition for talent and technology. After all, 3A games require significant investment in development, marketing, operations, etc., and China's game industry still lags behind mature foreign markets in terms of talent and capital. Additionally, developing 3A games necessitates high-level technical support, including graphical rendering, physics engines, and artificial intelligence, posing a significant challenge for the domestic 3A game industry.

Despite these difficulties, the Chinese game industry has not given up on pursuing 3A games.

Currently, domestic game companies such as Tencent, NetEase, and miHoYo are actively developing and investing in 3A games as part of their domestic 3A game strategy.

To address technical and talent issues, establishing overseas studios to recruit individuals with 3A game development experience is a common practice. For instance, Tencent founded LightSpeed Studio in Los Angeles, NetEase set up Sakura Studio in Montreal, Canada, and Tokyo, Japan, and miHoYo established a studio in Montreal, all aimed at developing globally competitive 3A games.

At the capital level, investing in overseas game companies or establishing partnerships with them to participate in the development and distribution of 3A games is also a common approach. For example, Tencent indirectly participates in 3A game development by investing in companies like Ubisoft and From Software.

Image source: Weibo screenshot

The popularity of "Black Myth: Wukong" reflects the market's strong demand and anticipation for high-quality domestic 3A games. It is not just the success of a single game product but also a microcosm of China's game industry striving for higher development.

It is hoped that "Black Myth: Wukong" will not only serve as a new starting point for Chinese games to reach international standards but also sound the clarion call for the soaring of China's game industry. Only by producing more well-crafted and high-quality domestic 3A games like "Black Myth: Wukong" can China's game industry truly stand at the center of the world stage and shine with brilliance.