Analysis: Tencent-Backed Black Myth: Wukong Gives China’s Gaming Industry a Shot in the Arm

The launch of "Black Myth: Wukong", a Tencent-backed video game, caused significant excitement within the gaming industry [para. 1]. The action-adventure role-playing game, available on PC and PlayStation 5 (PS5), is inspired by the Chinese mythical figure Monkey King and the classic novel "Journey to the West" [para. 2]. Upon its release on Tuesday, the game attracted over 2.1 million concurrent players on Steam, surpassing other high-profile single-player games like "Cyberpunk 2077" and "Elden Ring" [para. 3]. Remarkably, in the week before the game's release, PS5 sales on Sony's Tmall store more than doubled compared to the same period the previous year [para. 3].

The significant resources and effort invested in "Wukong" have played a crucial role in its popularity. The Hangzhou-based developer, Game Science Interactive Technology Co. Ltd., created various game scenes based on Chinese historical relics [para. 4]. Field research in Shanxi province, where data was collected from ancient temples, informed the game's 3D modeling [para. 5]. The Hangzhou government also supported the game by listing it among 40 quality animation and gaming projects eligible for a special support fund in 2022 [para. 6].

According to Ryan You, a partner at Galaxy Interactive, "Black Myth: Wukong" has appealed to gamers eager for innovative experiences provided by independently developed games [para. 7]. As of Wednesday, the game had the highest number of concurrent players globally, according to SteamDB, and was the leading trending topic on the Chinese social media platform Weibo [para. 8]. This success may inspire other Chinese studios to develop AAA titles for PC and consoles, a shift from their traditional focus on mobile games [para. 9].

"Wukong" is available for purchase on multiple platforms, including Steam, Epic Games Store, WeGame, and the PlayStation Store [para. 10]. Its early success has also attracted attention from various Chinese brands. For instance, Luckin Coffee launched a promotion featuring game-themed merchandise [para. 11]. The game has received rave reviews from major review sites like IGN China, which awarded it a perfect score of 10 out of 10 [para. 12]. Player feedback has been largely positive, with a 96% "overwhelmingly positive" rating on Steam from over 174,000 reviews, and a 4.7/5 rating on the U.S. PlayStation Store from 21,000 reviews [para. 13].

However, there are concerns about the game's long-term commercial viability. Console games often face challenges in increasing average revenue per user due to limited monetization channels [para. 15]. A representative from NetEase Inc. noted that even a AAA game generating $1 billion in its first year might yield limited profits after deducting publication, distribution, and research and development costs, especially given the current economic slowdown [para. 16].

The founding members of Game Science, established in 2014, previously worked at Tencent, including the CEO Feng Ji and co-founder Yang Qi [para. 17]. Tencent has invested in Game Science and is responsible for publishing "Wukong" on its WeGame platform [para. 18]. While Tencent's stock remained largely unchanged, stocks of smaller firms linked to the game, like Huayi Brothers Media Corp. and Citic Press Corp., surged by the 20% limit following local media reports [para. 20][para. 21].

In summary, "Black Myth: Wukong" is making waves in the video game industry with its blend of Chinese mythology, impressive graphics, and innovative gameplay. Its success may signal a burgeoning era for Chinese-developed AAA titles on global platforms [para. 1][para. 2][para. 3][para. 7][para. 8].