Gamma Data: Development Prospects of AIGC in China’s Game Industry in 2023

Among the representative overseas AI companies, more than 80% are from the United States

AI is the focus of the next stage of global technology development, and global technology companies are all scrambling to seize this field. From the perspective of national distribution, more than 80% of representative overseas AI companies are concentrated in the United States, represented by large companies such as Google and Microsoft. Large technology companies have become the core development force.

Data source: Gamma Data (CNG)

Domestic R&D and capital strength are strong, but there are still weak links

Chinese companies have basically covered all the relevant links in the AIGC industry chain in their layout areas, and their R&D capabilities and capital strength are also relatively strong. However, compared with the United States, Chinese companies are less competitive in chip manufacturing, large-scale model R&D and other links. It is difficult for Chinese companies to catch up in the weak links of the industry chain, which will also become a development challenge.

Data source: Gamma Data (CNG)

Chinese companies started investing relatively late, and talent and capital need to be further accumulated

In terms of deployment time, Chinese companies have only begun to deploy in the AI ​​field in recent years, while the earliest deployment of some overseas companies can even be traced back to decades ago.

Data source: Gamma Data (CNG)

In terms of corporate personnel size, there is little gap between domestic and foreign large enterprises with more than 1,000 employees, but the lack of central enterprises has become an important challenge to China's AI development.

Data source: Gamma Data (CNG)

In terms of capital investment, the investment and financing scale of a large number of Chinese start-ups is concentrated below 100 million yuan, while the minimum investment and financing scale of representative overseas AI companies exceeds 50 million US dollars.

Data source: Gamma Data (CNG)

Data source: Gamma Data (CNG)

China and the United States are the main owners of AI-related patents

In recent years, the number of approved patents worldwide has seen rapid growth, reaching a peak in 2021, with more than 100,000 patents approved worldwide.

Note: The same patent may exist in different regions or institutions. Data source: Gamma Data (CNG)

AIGC development status of the gaming industry

The development of AIGC helps the gaming industry reduce costs and increase efficiency

The gaming industry is at a critical stage of reducing costs and increasing efficiency, and AIGC technology will play a major role in promoting it. Company interviews show that companies generally believe that AIGC-related technologies have broad application space in strengthening content creation, optimizing gameplay, assisting in localized translation, and other aspects. Some companies have also conducted key explorations in related fields.

More than 60% of the top game companies have directly deployed AIGC

Judging from the AIGC layout rate, more than 60% of the leading game companies have clearly laid out the AIGC field and have taken substantive actions.

Data source: Gamma Data (CNG)

Among the companies that have made arrangements, 27 have invested in the full-process application of the game industry, including game development, marketing, and operations; 12 companies have used AIGC-related technologies to provide solutions for other industries or companies; and 9 companies have chosen to focus on the digital human/metaverse field.

Data source: Gamma Data (CNG)

8 companies explore AIGC core technologies

From the perspective of how companies are deploying AIGC technology, a total of 8 game companies are deploying self-developed big models. Relevant companies are expected to rely on their own capital accumulation and resource accumulation to explore AIGC core technologies and promote the independent development of China's big models.

Data source: Gamma Data (CNG)

Some game companies have actually expanded by accessing large models and core support layer research. About half of these companies have focused on building AIGC experimental research teams, using special resources to promote the development of related technologies and their application at multiple business levels of the enterprise.

Data source: Gamma Data (CNG)

60% of enterprises are concerned about the application direction and effect of AIGC

The survey of game companies showed that companies are also paying attention to multiple development aspects of AIGC, among which they are most concerned about the conditions related to their own game business. Some companies have been deploying AIGC-related fields for many years and have accumulated their own outstanding advantages. They have even built their own competitiveness in R&D, marketing and other aspects with AIGC technology. Therefore, the report focuses on analyzing them and provides a reference for more Chinese game companies to deploy in the AIGC field.

Data source: Gamma Data (CNG)

▌NetEase

Years of R&D investment have resulted in significant technological advantages

AI big model acceleration covers more than 100 application scenarios

Since 2011, NetEase AI has focused on computer vision, natural language processing, voice interaction, pattern recognition, deep learning, reinforcement learning, heterogeneous computing, data intelligence and other technical research fields. After years of accumulation, it has significant technical advantages at the AIGC level. In terms of specific technical applications, NetEase has launched several self-developed large models, which are integrated with key industry scenarios such as games, education, industry, and music, covering more than 100 more segmented application scenarios as a whole, with significant technical landing capabilities. In terms of application results, NetEase AIGC-related services have covered the entire product line of the group and reached nearly 1 billion users. The mature application of AIGC technology has also effectively improved the user experience. For example, in the field of games, intelligent NPCs and AI face pinching have significantly improved the richness and fun of game play. At the same time, the application of AIGC technology has further strengthened NetEase's content research and development efficiency in multiple fields, and has applied its own experience to serve other companies to form more AIGC product systems. Based on its own technical capabilities, user reach and other advantages, NetEase will have a higher development prospect in the field of AI in the future.

▌Sanqi Interactive Entertainment

Digital product matrix empowers the development of gaming business across the entire chain

Actively participate in the construction of AIGC industry ecosystem

37 Interactive Entertainment has accumulated many years of experience in AI and big data marketing, and in recent years has further explored the integration of AIGC with game development and distribution business, and created a complete digital product matrix embedded with AI and big data technology. The nine middle-end products run through the industrial pipeline of the entire process of game development and operation, thereby enabling the development of the game business and promoting continuous revenue growth. Not only does 37 Interactive Entertainment continue to build the AIGC product system internally, it also actively participates in the construction of the AIGC industry ecosystem, actively invests in technological innovation companies such as computing power and data, and collaborates with industry organizations, technology manufacturers, etc. to explore the AIGC ecosystem and promote the sustainable and stable development of the AIGC industry chain. At the same time, 37 Interactive Entertainment also attaches importance to the recruitment and training of AIGC-related talents, and encourages employees to innovate and practice in various ways, which will also effectively promote the substantive application of AIGC technology. In addition, 37 Interactive Entertainment is also using AIGC to explore more fields, and then using cutting-edge technology to drive its own business development.

▌Perfect World

Promote the integration and application of AI and self-developed game technologies

Actively deploy AIGC frontier areas

As a "technology-driven" game company, Perfect World pays close attention to the application scenarios of AI, a cutting-edge technology, in the entire life cycle of games, and has established an internal AI center, which is led by the CEO of the game business, led by the middle office technology department, and deeply participated by the producers of various projects, and then vigorously researches and promotes the learning and application of AI technology. Perfect World continues to use AI to optimize game product models and productivity models. It has now applied AI-related technologies to intelligent NPCs, scene modeling, AI painting, AI plots, AI dubbing and other aspects in the game, thereby improving R&D efficiency and allowing users to obtain a better gaming experience. At the same time, Perfect World pays attention to the development of technology integration. Relying on its own technical advantages accumulated in core technology fields such as self-developed engines, commercial engine applications, 3D modeling and rendering, it integrates AI technology and explores the innovative application of the company's existing technical advantages and emerging cutting-edge technologies in multiple dimensions. With the help of corresponding technical capabilities, Perfect World also continues to promote the integration and innovation of AI technology with digital entertainment industries such as e-sports and virtual anchors, and then deploys more cutting-edge fields related to AIGC.

Tencent

Accumulate in-depth R&D experience in the field of AI

Application scenarios, data accumulation, cloud computing and other factors will strengthen the company's layout

Tencent has accumulated profound technical strength in the development of artificial intelligence. It has built two laboratory matrices based on artificial intelligence and cutting-edge technology, and continues to promote the development of large models. It has launched the Hunyuan AI large model based on the Taiji machine learning platform, actively promoting the integration of decision-making AI and generative AI development and creating platform services. On the application side of AI technology, Tencent takes content, social networking, and games as the three major business areas as the core interface, continuously studies and improves artificial intelligence technology capabilities and implements them in product services. At the same time, it develops key artificial intelligence projects in different industries such as medical care, agriculture, industry, and manufacturing. Rich application scenarios and data, as well as long-term accumulated technical teams and R&D experience, combined with a strong cloud computing infrastructure and ecological system, have laid the foundation for Tencent's layout at all levels of the AI ​​track. In the future, Tencent AI-related content will be further developed in scientific research, technological progress, and application innovation, always adhering to the development core of "user-oriented, technology for good".

▌Century Huatong

Synchronous layout of application layer and support layer

Assisting the development of AIGC ecosystem

At the AIGC layout level, Century Huatong adopts the strategy of simultaneous layout of the application layer and the support layer. At the application layer level, Century Huatong's Shengqu Games, Diandian Interactive, etc. continue to pay attention to and apply AI tools to assist in the creation of art, music, code and other links, and explore and apply them in new and existing products to reduce game development costs and improve R&D efficiency; at the support layer level, Century Huatong began to deploy the computing power field as early as 2020, and upgraded the layout of "AI-IDC" this year, which is also the most important support resource for the development of the AIGC industry. With the further development of the AIGC industry, the demand for computing power by game companies and more other companies will continue to grow, which will also bring better development opportunities for Century Huatong. At the same time, Century Huatong's Cloud Data Center Division is also comprehensively promoting the development of the computing power industry chain, committed to exploring the underlying technology innovations such as big data, software and hardware, and continuously strengthening internal and external cooperation to connect the upstream and downstream of the industry chain to achieve full-link technology output and multi-field technology collaboration. The exploration of related businesses is also expected to promote the further development of the AIGC industry. Century Huatong's continuous investment in the application layer and support layer has made it an important builder of the AIGC ecological chain.

▌Zhongshouyou

External collaboration and internal research in parallel to rapidly apply AIGC technology

Have clear application goals and implementation paths

Zhongshouyou adheres to problem-oriented and cost-intensive investment in the field of AIGC, and has quickly established a certain competitive advantage in a short period of time through external cooperation and internal research. In terms of external cooperation, Zhongshouyou actively establishes partnerships with the world's top AI companies such as Microsoft, Baidu, Huawei and ByteDance to jointly explore the application of large language models and AIGC in the game industry, ensuring that the company can always master and use industry-leading AI technology. In terms of internal research, Zhongshouyou has established a special AI technology team to focus on following the cutting-edge information in the industry, deeply study the characteristics of different large models currently in cooperation, and comprehensively apply the capabilities of large models based on its own specific needs, comprehensive model characteristics, application effects and training costs. After substantial exploration, Zhongshouyou has now fully applied AI technology to business areas such as game development, distribution and game experience, and has achieved remarkable results in "Legend of Sword and Fairy World". In addition, Zhongshouyou has also set clear application goals and implementation paths for the application of AIGC, which has also become the key to its ability to quickly apply related technologies.

▌Zhongxu Future (Tanwan Games)

AI technology helps improve efficiency in R&D and marketing

Accumulating advantages in the field of intelligent marketing to enable business expansion in multiple fields

At present, Zhongxu Future (Tanwan Game) has tried to introduce AIGC tools on the R&D side, and has effectively improved the company's R&D efficiency, while continuing to deepen the layout of AI on the marketing side. As one of the companies that deployed intelligent marketing earlier in the domestic game industry, Zhongxu Future has relied on its marketing experience accumulated in the game field to start digital business services since 2015, and attaches importance to the development and application of AI big data technology. Based on its own business experience, it has gradually built the delivery effect analysis system "Hetu" and the intelligent delivery system "Luoshu", and then further integrated technical capabilities and business scenarios to eventually form the "Xuliang Xinghai" technology platform. The platform conducts in-depth research on artificial intelligence technology, and with the three core capabilities of precise digital marketing, in-depth operations and brand development, it matches end-user preferences with interactive entertainment products or consumer products, thereby promoting brand value growth in multiple business areas. In the future, Zhongxu Future will further expand its business to e-commerce, online literature, short dramas and other fields. In the context of the good development prospects of intelligent marketing, Zhongxu Future is expected to continue to promote the application of AI on the marketing side.

Data source: Gamma Data (CNG)

AI may become the key to improving user experience

In the past three years, more than half of the players have quit the game because "they cannot compete with other players without spending money", and more than 40% of the players have quit the game due to "a large number of other players leaving the game". The popularization of game AI will prevent the corresponding situation to a certain extent and greatly improve the gaming experience and user retention.

Data source: Gamma Data (CNG)

AIGC assists in character creation and strengthens the interaction between users and characters

The survey results show that more than 60% of users have favorite or focused game characters, and more than 80% of users are more concerned about the plot and strength of the characters in the game. Using AIGC tools to create derivative content can greatly improve the efficiency of creation and continue to attract user attention. In the future, AIGC will have more room to explore in terms of user operations, which is of great significance to the long-term operation and IP creation of enterprises.

Data source: Gamma Data (CNG)

Data source: Gamma Data (CNG)

More than half of users are willing to create games, AIGC will promote UGC creation

The survey shows that more than half of the users have had the idea of ​​creating game products, and more than 40% of users have experience in creating game-related works. As AIGC technology matures, it means that more and more users can easily join the creator ecosystem.

Data source: Gamma Data (CNG)

Data source: Gamma Data (CNG)

Less than 30% of game users understand the concept of AIGC

Survey data shows that less than 30% of the respondents have some understanding of the AIGC concept, more than 70% of the respondents have not used AIGC-related tools, and the proportion of users who chose "used" is only 28.3%.

Data source: Gamma Data (CNG)

Users have shown great interest in multiple AIGC-related tools, so there are large blue ocean users in different fields. Game companies may gain new development opportunities by converting their relatively mature R&D tools into To C products.

Data source: Gamma Data (CNG)

More than 60% of users use AIGC tools for entertainment

Among the purposes for which game users use AIGC-related tools, entertainment ranks first, but other purposes such as work needs also account for a high proportion. When developing AIGC tools, game companies can combine their products with the different needs of users, broaden the application of their own products, and provide opportunities for the development of "game +".

Data source: Gamma Data (CNG)

AIGC development trend in the gaming industry

Optimize capital investment efficiency and build a talent training system

Currently, AIGC is in its early stages of development, so the relevant support system is still under construction, and the construction direction needs to start from multiple aspects such as capital investment, policy support, and talent allocation. The survey shows that 48.7% of companies believe that AIGC development lacks corresponding talent training and reserves. In the actual recruitment process, companies also face a large demand for talent. 64% of the top 50 game companies in terms of revenue have opened AIGC talent positions.

Computing resources, chip technology and other related platforms will help AIGC further develop in the gaming industry

In a questionnaire survey of people in the game industry, more than 60% of the respondents believed that the challenge facing the development of AIGC in China's game industry is that "domestic enterprises' research and development capabilities for large models are uncertain." Secondly, more than half of the respondents believed that "key chip-related technologies are backward." In addition, computing resources and data processing technology are also key to the development of AIGC in the game industry. The problems at the relevant level are not something that the game industry can solve on its own, so it needs to rely on the power of the industry chain platform. Some platforms can provide corresponding resources to further promote the development of AIGC in the game industry. Taking Ali Metaverse as an example, first of all, it can rely on the PaaS platform to provide the computing resources needed for the development of AIGC, and support common AI development frameworks. The cloud rendering computing system built by itself can also better meet the training needs of AIGC models; at the same time, Metaverse can rely on the advantages of cloud game services to develop AIGC tools and expand AI capabilities; finally, in the field of game content creation, more solutions to strengthen the construction of AIGC content ecology are also being explored, which is expected to promote the expansion of the AIGC developer ecology and the popularization of related tools. In the future, game companies need to cooperate with more related platform parties to solve their own development problems in the field of AIGC.

Data source: Gamma Data (CNG)

Potential problems in the development of AIGC in the gaming industry

Always pay attention to AI data security issues

In the process of AIGC development, data security-related issues have attracted much attention. With the increasing demand for data assets by enterprises, it is foreseeable that the frequency of information security incidents will increase significantly, leading to many problems such as personal privacy leakage, confidential information leakage, intellectual property infringement, and the prevalence of data black and gray industries. In the future, international exchanges and cooperation around data information will become more frequent, so China needs to focus on information-related transactions and cooperation to avoid more potential risks. At the same time, it is also necessary to discuss and cooperate with relevant overseas platforms on data security to jointly ensure that while promoting the development of AI, possible information security incidents can be prevented.

It is difficult to avoid potential risks when using AIGC tools on the user side

At present, the application of AIGC tools has resulted in the generation of erroneous content; the use of AIGC tools to create papers and complete assignments has also occurred frequently, and a large number of these behaviors involve cheating and deception; there have even been multiple cases of using AIGC-generated content for fraud, phishing, or for the production of pornographic and violent content. How to conduct content supervision during the review process will become a challenge.

The report also selects important speeches and opinions from many corporate experts to help more practitioners understand the current status of AIGC development. Including: