The Chinese game industry has grown immensely in the past few years. Online free-to-play titles, such as Genshin Impact and Wuthering Waves, have millions of players around the world, while others like Etheria: Restart gear up for their full release. Companies have also marveled at the success of Black Myth: Wukong, which sold 10 million copies in under a week when it launched in August 2024, and subsequently honored as Game of the Year at the 2024 Steam Awards.Indeed, game studios in China are firing on all cylinders, with multiple offerings vying to become the next big global hit. This is further bolstered by rising incomes among consumers, high enthusiasm among developers, and robust support from regional governments. This raises the questions—what's driving growth in the region, and where is this emerging industry headed next?To learn more about the inner workings of the Chinese games industry, Game Developer spoke with several experts like China Independent Game Alliance (CIGA) founder Simon Zhu, Li Shen, former Tencent Games China and Epic Games China chief technology officer, and Siyuan Xia, the co-founder of Chengdu-based Leenzee Technology and director of soulslike action-roleplaying game Wuchang: Fallen Feathers.Single-player game development is becoming sustainable in ChinaRelated:Chinese developers have historically been reluctant to work on single-player games. The challenges of premium single-player production are immense, and the popularity of free-to-play titles makes those kinds of games a better business prospect. Zhu gave us a brief history lesson on how free-to-play offerings became the norm for many decades. "If you recall, 1995 was a landmark year that saw the birth of The Legend of Sword and Fairy series," notes Zhu. The franchise, which combined elements of Chinese mythology and wuxia (Chinese martial arts), was a huge hit for nearly a decade."Unfortunately, even with the series' popularity, piracy was so rampant back then that the single-player market could not truly flourish. It wasn't until the online game boom in the 2000s that China's video games market and history truly began—which was then dominated by free-to-play games. We had to wait until March 2015 when the PlayStation officially entered the Chinese market for single-player console games to be formally introduced to gamers. Even then, single-player games still occupied a small niche until Steam's emergence significantly expanded access."Studios and publishers also have to contend with the disparity in gauging the success of a single-player title compared to a free-to-play offering. "The fate of the former is often determined on launch day—(making those projects riskier ventures)—while the latter has more room for recovery if issues arise on the first day," Xia tells us. It all boils down to how each team adapts, just as how the Wuchang team had adjusted to a new development cycle to make the overall rhythm and work process more manageable.Related:Image via Lenzee/505 Games.Experts are indeed well aware of the opportunities brought about by breakthrough titles opening doors to a wider audience, though these are uncharted waters for many studios in the country.Shen (who now heads his own investment company, Re³ Lab) also adds that Chinese players and developers have always had interest in single-player games, but it wasn't until Black Myth: Wukong sold millions of units globally that publishers became more willing to invest.Other single-player offerings, such as S-Game's Phantom Blade: Zero and Leenzee's Wuchang: Fallen Feathers, also hope to capitalize on Black Myth: Wukong's success. Wuchang, while set during the fall of the Ming Dynasty, even shows a glimpse into the culture and history of the Bronze Age Ancient Kingdom of Shu given that the studio is just an hour away from the archaeological site of Sanxingdui.Related:Wuchang and other games wear their cultural identity proudly on their sleeves, and Xia emphasizes its importance. "I believe Chinese games are gradually forming a distinctive identity in global markets. Cultural outreach isn't an overnight phenomenon but a long-term evolution fueled by collective efforts. For our part, we aspire to contribute foundational work through our endeavors.Shen echoes this sentiment as well. "Black Myth: Wukong was hailed as 'China's first AAA breakthrough' and I believe this instilled pride not just in the developers, but across the industry as well. Many view their work as challenging the Western-dominated games landscape and elevating Asian cultural representation. This collective mission drives innovation and a deeper exploration of local/regional narratives."That said, there's also a balancing act between highlighting cultural uniqueness and navigating geopolitical sensitivities, as Shen points out. "Look at Phantom Blade: Zero, for instance," says Shen. "It garnered nine million views on Bilibili (essentially China's own version of YouTube), but it required rebranding for Western audiences."Challenges and opportunities in a fluctuating marketThe experts we spoke with agreed that Chinese game developers benefit from unique comparative advantages—and struggle with some disadvantages. "Chinese companies, owing to their experience in making online free-to-play games, are global frontrunners in commercial design and operations, excelling at creating monetization models, balancing numerical values, and guiding user behavior," says Zhu. "Sadly, game design and overall quality may fall short, particularly in narrative and script writing. The industry still suffers from limited experience in game design, insufficient market insight, and inadequate industry exchange."Shen agrees that China has achieved world-class capabilities, particularly when it comes to mobile game platforms and substantially profitable products in the domestic market. "Unfortunately, increasing production costs and market competition raise the barrier to entry for commercial games," says Shen. "This has made some developers grow increasingly conservative in genre selection, prioritizing production polish over innovative differentiation."Zhu also shares the stark differences between Western and Chinese industries, particularly when holding events and expos. "To give you an example: The Game Developers Conference (GDC) in the United States has long been established as a key platform for industry exchanges and B2B meetings. The event hosts approximately 1,000 sessions, with an access pass that costs around 10,000 RMB (approximately $1,350), yet it manages to draw attendees from across the globe, fostering an excellent environment for communication and networking.""In contrast, the events I organize in China offer tickets at about 500 RMB (approximately 70 USD), which already includes a one-day access to the WePlay Expo. Despite this, we still face challenges in ticket sales and in engaging local speakers, some of whom are hesitant to share their expertise. I believe that this is due to the general public's understanding of the games industry and culture, especially since China's video game history and cultural integration only span around 20 years. The disparity with overseas markets is notable, but it also indicates substantial growth potential."Crunch culture, too, remains a controversial topic in China. "Long hours are common especially during project deadlines," says Shen. "Some studios adopt a 9-9-6 schedule–i.e. 9 a.m. to 9 p.m., six days a week. While labor reforms are underway, intense competition and a culture of 'dedication' [to your work] tend to normalize overtime as well."Image via CIGA.While government guidelines do exist, enforcement remains inconsistent as it depends on each company or organization. "Our company, Leenzee, does not encourage overtime since we view that as inefficient and counterproductive," notes Xia. "In spite of this, some team members still voluntarily stay late. For them, Wuchang is the first Chinese-developed single-player game that they've worked on, and there's an emotional attachment to it.""In CIGA, we have consistently eschewed the practice of crunch or overtime, even going so far as to avoid rigid clock-in/clock-out times," explains Zhu. "The reality is that crunch, feeling compelled to stay until the boss leaves, or project pressures that lead to mandated overtime—these are all outdated formalities. They do not enhance inefficiency or quality. Instead, they only lead to increased stress and dissatisfaction among team members. Knowing how much the younger generation values work-life balance, I'm optimistic that outdated practices wane as the attitudes of newer generations continue to shift and the work environment evolves."In a period of growth for Chinese game development, one might think there were fewer layoffs going around. That's not true, says Zhu. "I'm based in Shanghai, the city that's at the forefront of the industry," he says. "In the last two years, numerous companies have experienced layoffs, including the termination of entire projects, teams, or subsidiaries. The approach differs from company to company, with some offering compensation to affected employees."Shen points out that unlike many other game development communities, China benefits from a strong social safety net reinforced by unemployment insurance and state-backed retraining programs. "Though specifics depend on regional policies," he clarified, noting it's not a perfect solution.Local governments are investing in game developmentRegional policies that often play a huge role in supporting game development in China. Most games that are set to be published in the country require a license from the National Press and Publication Administration (NPPA), with key steps that include content review (i.e. cultural sensitivity or historical accuracy) and technical compliance. However, each regional administrative district may have additional programs in place to aid companies and studios."The Sichuan Provincial Government has been highly supportive of our work," says Xia. "Since Wuchang: Fallen Feathers takes place in Chengdu and parts of Sichuan Province, the government even helped us locate more cultural heritage locations available for digital preservation through our scanning process.""Depending on the regional policies, the initiatives might include tax breaks for cultural projects or grants for technology/R&D," adds Shen. "Also, games recognized as key to 'digital cultural industries' have mandates to integrate traditional themes, and there might even be state-backed campaigns to export games globally as cultural ambassadors."Zhu, meanwhile, gestured to the 'tech park' we were in, one of several in the city that was built by Shanghai's administrative government. "This entire complex is home to several tech companies, both large conglomerates and startups, and most only pay a small expense for rent," says Zhu. Zhu also adds that local governments across the country have policies that help address game incubation, operations, local releases, and international distribution.There's no denying that China is the largest video games market in the world. While challenges, such as a lack of experience in making single-player games and a reluctance to risk on day-one launch revenue, do exist, experts remain hopeful. Developers, project leads, experts, and the government all contribute toward a collective effort to drive the expansion and global reach of the Chinese games industry."Rising incomes and increased demand for high-quality content will continue to drive growth," says Shen, arguing that there's a brighter future ahead.Zhu, meanwhile, remains steadfast in CIGA's support of the indie games community. "We know that the development of this sector in the country remains a long-term endeavor," notes Zhu. "Transformative change may not be achieved within a single lifetime, but this undertaking demands continued dedication and resilience.""We have a saying in China: 'When everybody adds fuel, the flames rise high'—it's the equivalent of saying that 'there is strength in numbers,'" posits Xia. "Our team hopes that, through our efforts, we can contribute further to the games industry, making it easier for future creators and allowing for more interesting works to emerge."

A familiar refrain over the last few years has been the death of what we like to call AA games: mid-budget games made by mid-sized teams. AA games have production values that are comparable with AAA blockbusters — you know: full voice acting, cinematic cutscenes, fancy 3D graphics — and occupy similar genres, but tend to have a more modest scope and realistic set of ambitions. They used to be the industry’s stock-in-trade, until they were squeezed out by an exploding indie scene on one side and risk-averse publishers’ focus on mega-budget sure bets on the other. Now they’re an endangered species.Or are they?A post on the gaming forum ResetEra recently alerted me to something interesting. The two best-reviewed games of 2025 so far (alongside the indie darling Blue Prince) – and the two leading front-runners for Game of the Year at The Game Awards in December — are Clair Obscur: Expedition 33 and Split Fiction. These both retail for $50 — not the industry-standard $60 or the increasingly widespread premium price point of $70 (never mind Nintendo’s decision to break the $80 taboo with Mario Kart World). The poster framed this as a triumph of fair pricing over the greed and bloat of AAA gaming.Personally, I’m wary of constructing critical arguments around pricing and value — not least because paying more for our games is an arguably necessary, if painful, counter-measure if the game industry is to survive inflation, skyrocketing development costs, and stalling growth in the gaming audience.But it’s also true that accepting more expensive games that take even longer to make isn’t the only path to sustainability for gaming. Alternatively, we could reframe our expectations for the scope and technical specifications of the games we play, and the sheer amount of labor that goes into making them. As the meme puts it: “I want shorter games with worse graphics made by people who are paid more to work less and I’m not kidding.”Clair Obscur: Expedition 33. Image: Sandfall Interactive/Kepler Interactive via PolygonThat sounds like a description of a AA game to me. Well, maybe not the “paid more to work less” part — certainly not in the category’s 2000s heyday — but even this might have room to change as new publishing and development models emerge.Consider Clair Obscur and Split Fiction. Neither can really be called an indie game, but they’re both made on the outskirts of the traditional publishing system. Clair Obscur is the debut game of Sandfall Interactive, an independent French studio founded by Ubisoft veterans. It has a team of about 30 people, supported by outside contractors. The game was funded and released by Kepler Interactive, a young, hungry publisher that was itself founded by a coalition of indie studios.Split Fiction is more of an establishment release, but only kind of. It was bankrolled by industry giant Electronic Arts. But its Swedish developer Hazelight (team size: around 80) is fully independent, and like Hazelight’s previous games, Split Fiction was published under the EA Originals label in an arms-length relationship that gives the developer full creative control. I don’t know what the working conditions are like at Sandfall and Hazelight, but I wouldn’t be surprised if they were better than the industry norm.That’s one thing that sets these two releases apart from the AA games of old. Another is their critical reception. The AA classics of the past — games like Second Sight, Stranglehold, or The Darkness — were good, but seldom considered great in their time. They were enjoyably pulpy genre efforts that mostly stayed in their lanes, and were gently penalised by reviewers for their lack of ambition.Split Fiction. Image: Hazelight Studios/Electronic ArtsClair Obscur and Split Fiction, however, have both enjoyed universal acclaim, reflected in 90-plus ratings on both Metacritic and Opencritic. Review scores like these are usually reserved for AAA blockbusters, expensive first-party vanity projects, and mold-breaking indies. (And Nintendo games, which arguably often fit the AA template, but that’s an argument for another time.) It’s very unusual for mid-budget productions like these to resonate with reviewers in this way — although perhaps a bit less unusual as time goes on. You can argue that last year’s acclaimed Metaphor: ReFantazio belongs in this category, and even 2023 GOTY winner Baldur’s Gate 3.The two new games succeed for different reasons. Split Fiction is laser-focused on a style of gameplay – split-screen, co-operative gaming for two players – that’s very popular, but underserved by the industry. (Hazelight’s previous game, It Takes Two, has sold an astonishing 20 million copies.) Split Fiction stands out just by executing this rare breed of game very well. Clair Obscur resurrects a AAA genre of the past — basically, the turn-based Final Fantasy games of the 2000s — with a more modest scope and a strongly individual flavor in its writing and artwork. It feels both nostalgic and fresh.But, more broadly, the games do have something in common. Unencumbered by the need to be huge, or to appeal to the widest possible audience, they’re both able to give players something specific that they crave and that the mainstream gaming industry isn’t giving them. And they do so in a gaming vernacular that looks almost indistinguishable from a full-blooded AAA release. That’s why they’re resonating so strongly with critics and players.In the game industry’s current crisis of sustainability, it’s heartening that AA games are having a moment and earning a respectability that they’ve never enjoyed before. If Split Fiction or Clair Obscur is crowned Game of the Year at The Game Awards in December — which, following Grand Theft Auto 6’s delay, is quite possible, perhaps even likely — we’ll know for sure that the AA comeback is happening at last.See More:

Image: Nintendo LifeAssuming the postie doesn't deprive us on launch day, we're less than three weeks away from having a brand new Nintendo console in our hands! This 24th edition of the Nintendo Life Mailbox will be the final spread with the original Switch as Nintendo's flagship console! Yes, we've been rifling through our inbox and publishing select contents in our monthly letters page for a whole two years now, and we'll be back next month with an entirely different console sitting on the desk. And, presumably, a whole pile of Switch 2-related correspondence to sort through. It's a busy time in Nintendo land, so let's crack on. Got something you want to get off your chest? We're ready and waiting to read about your game-related ponderings. Each month we’ll highlight a Star Letter, the writer of which will receive a month’s subscription to our ad-free Supporter scheme. Check out the submission guidelines at the bottom of this page. Let's sit back with a warm beverage and go through our dispatch box... Nintendo Life Mailbox - May 2025 "Smells like...electronic...raspberries." — Image: Zion Grassl / Nintendo Life "for those who want it" (***STAR LETTER***) What are your thoughts on the innovations of Switch 2 in relation to generations past? Nintendo's gimmicks have historically proven to be hit and miss, but I see a shift ever since the Switch launched in 2017. Sure, it still had the IR sensor but hybrid gaming and gyro aiming (which technically already existed, but Switch established it as a mainstay) were legitimate forward progressions, and Switch 2 seems to offer even more legitimate innovation with both gameshare and mouse mode. I foresee both of these features becoming permanent fixtures in future consoles, and much like gyro aiming, changing the way we engage with video games. I truly believe mouse mode is something gamers will never want to give up once they've experienced it's benefits (especially since, unlike innovations of yesteryear, it doesn't replace the traditional experience, it merely enhances it as an option for those who want it). Thoughts? JaxonH More and different ways to play are exciting, especially if they're built into the hardware. For me, Drag x Drive was one of the highlights of the Switch 2 event at the start of April. I'm all for mouse mode options, whether they're cute and complementary or integral to a game, but it's on Nintendo to make it indispensable. The tech is certainly cheap enough to integrate into any Joy-Con-style controller from now on. I'm not convinced it's going to fundamentally change how we approach gaming, though. Will Mouse Mode be comfortable for multiple hours? They work like mice, sure, but ergonomically, that's not their main function. I also remember thinking every pad would have a built-in pointer after the Wiimote. It's affordable, intuitive tech, so why not include that option? And yet we live in a world where the Xbox pad still doesn't have gyro. - Ed. "out of the running" I recently finished Ace Attorney Investigations 2 on Switch, and wow, what a ride! I’m so happy it finally got localized for the West, even if it did take 13 years. Got me thinking about other games that haven’t seen the light of day outside Japan. Yes, there are some obvious frontrunners like Mother 3 and Dragon Quest 10 that I’m sure we all would love to see get localized, but I’m talking more about lesser-known gems. As a big fan of adventure games, that new Tokimeki Memorial remaster caught my eye, but unfortunately I’m no Japanese speaker at this stage, so I guess that puts me out of the running for now. I’m also still waiting for Yo-kai Watch 4, as well as my pipe dream Starfy 1-4 localizations… How about you all? Any Japan-exclusives you’ve been eager to see come West? BandeeOfTheStars I wrote a little feature back in 2020 on the subject, and looking at it now, I'd probably take Marvelous above anything else at this stage. I've never gotten around to playing the fan patch. Team? - Ed. "I'd love to see Square's last Super Famicom game, Treasure of the Rudras, get a rerelease. I've heard so many good things about the creativity of this one, but at this point, given the complicated magic system, this might be an impossible dream." - Alana "I’ll go for Fire Emblem: New Mystery of the Emblem. We’ve missed out on a lot of Fire Emblem games in the West, but this 2010 DS remake not coming our way always stings the most. The series is big enough now that surely Intelligent Systems could get away with releasing a bundle, right?" - Jim Image: Zion Grassl / Nintendo Life Nintendo games that never officially left Japan Forever with you; never with us "special kudos" Is Nintendo Life planning to do full/short reviews to Switch 2 Edition games? It would be great to decide which upgrades are worth it. Congratulations to all on the Switch 2 news coverage with special kudos to Alex, Felix and Zion! Love to watch their discussion videos. RenanKJ Thank you, Renan - I've passed on the message to the video chaps! One sent me a teary-eyed smiling emoji as a reply. Yes, we will be reviewing all the major NS2 Editions, with the upgrades and additions being the main focus (the original Switch reviews will still be there for reference). Whether they'll be full or mini will be a case-by-case thing. - Ed. "mildly disappointed" Hi, I am mildly disappointed in the game chat feature for Switch 2 because I normally play games alone, with friends in person, or on the NintendoLife discord; Plus, it records you. So, I'll probably never use it. But, since they're bringing back Download Play, which is my favorite feature, they should bring back another DS feature PictoChat. OswaldTheLuckyGamer It's a strange one - ever since writing a little thing about GameChat, the idea has been slowly growing on me, despite news that it's hogging system resources and, you know, it's just video chat. We'll see how it works, but I do have plans to conduct NL staff meetings over GameChat. Moderating anatomically exaggerated doodles is something Nintendo never wants to do again, so I don't see Pictochat returning. But StreetPass is the (3)DS feature we really need, Oswald. StreetPass! - Ed. Image: Zion Grassl / Nintendo Life "that big playtest thing" With all the leaks and news of lawsuits coming out I just thought about one thing: Whatever happened to that big playtest thing everyone had to be quiet about or face the Ninty ninja's? I actually never saw footage of it, so I'm guessing it never truly leaked? What do you guys think about it now that we have the new system in our paws soon? What was it made for, did we already see that or is something still in the works? garfreek Testing it on Switch 1 suggests it will be a cross-platform thing, whatever it ends up being. There was nothing in it that suggested the power of Switch 2 was needed to realise its ultimate potential. It'll be coming. Whether anybody's really bothered is the bigger question. - Ed. Bonus Letters "Regarding a potential Switch 2 Lite, Nintendo has not officially announced such a version." - Trinny G This is true. Aside: If you're in the market for a brand-new Switch Lite, now's the time to be looking for a bargain! - Ed. "I think we’re all missing the true potential of the Switch 2 microphone: Odama 2" - Munchlax Pff. It's panpipe time. - Ed. Image: Nintendo Life That's all for this month! Thanks to everyone who wrote in, whether you were featured above or not. Got something you'd like to get off your chest? A burning question you need answered? A correction you can't contain? Follow the instructions below, then, and we look forward to rifling through your missives. Nintendo Life Mailbox submission advice and guidelines Letters, not essays, please - Bear in mind that your letter may appear on the site, and 1000 words ruminating on the Legend of Heroes series and asking Alana for her personal ranking isn't likely to make the cut. Short and sweet is the order of the day. (If you're after a general guide, 100-200 words would be ample for most topics.) Don't go crazy with multiple correspondences - Ideally, just the one letter a month, please! Don't be disheartened if your letter doesn't appear in the monthly article - We anticipate a substantial inbox, and we'll only be able to highlight a handful every month. So if your particular letter isn't chosen for the article, please don't get disheartened! How to send a Letter to the Nintendo Life Mailbox Head to Nintendo Life's Contact page and select the subject "Reader Letters" from the drop-down menu (it's already done for you in the link above). Type your name, email, and beautifully crafted letter into the appropriate box, hit send, and boom — you're done! Advert Free Share:0 1 Gavin first wrote for Nintendo Life in 2018 before joining the site full-time the following year, rising through the ranks to become Editor. He can currently be found squashed beneath a Switch backlog the size of Normandy. Hold on there, you need to login to post a comment...