This tech giant stocks up for Chinese gaming hits to compete with Sony

This tech giant stocks up for Chinese: According to industry insiders, Microsoft is buying up Chinese video game material in an effort to replicate Sony Group Corp’s “Genshin Impact” and make China even more of a hotspot for developing blockbuster games.

According to sources, “Genshin Impact” has accelerated a long-standing practise in which the US software giant and Japan. Which is on the bleeding edge of technology, pay enormous sums of money to independent creators in return for mentorship programmes and the usage of their games.

According to sources, Microsoft and Sony are seeking for titles to add to their Game Pass and PlayStation Plus subscription services in China, such as miHoYo’s action role-playing game. Which was created by a tiny Shanghai business and published two years ago.

This tech giant stocks up for Chinese gaming hits to compete with Sony

According to analysts, the increased interest in Chinese games in the West demonstrates that the industry in China is developing and improving. According to Daniel Ahmad, a senior analyst at Niko Partners, high-budget Chinese games may now compete with those from the West.

“Chinese game makers are attempting to standardise their development tools, establish complicated production processes, and invest in extremely huge teams,” Ahmad explains. Finally, it allows them to reach more people on more platforms and in more locations.

According to two experts in the gaming business, Microsoft is putting up a team to locate games in China. It was often stated that Microsoft only wanted major publishers to join up for its Xbox Game Pass subscription programme. However, it seems that the corporation is currently attempting to attract up smaller developers by giving substantial financial incentives.

According to documents, Microsoft is extending its subscription service to PCs and mobile devices. Simultaneously, Chinese creators such as miHoYo, famed for games such as “Genshin Impact,” which can be played by several people across various platforms, have grown in popularity.

Microsoft has reportedly suggested a sequel licencing contract that is substantially larger than the one they signed three years ago when they licenced their game for Game Pass.

The company’s management did not sign the contract because they believed they would get a higher offer after the game was completed.

Microsoft paid $2.5 million to US developer Studio Wildcard, which is owned by China’s Snail Games, to put their action game “ARK: Survival Evolved” on Game Pass, and another $2.3 million to showcase its sequel, “ARK 2.”

Recreate Games executives in Shanghai said that their forthcoming multiplayer game, Party Animals, would only be available on Xbox. This is due to an agreement they have with Microsoft.

Xbox CEO Luo Zixiong said that the firm has spoken with a number of Chinese companies interested in developing games for consoles and PCs.

We attempted to contact Microsoft, but they did not respond.

STILL Attempting to Stay Current

Microsoft took longer than Sony to begin conducting business in China. In 2017, the Japanese business launched the “China Hero Project” to assist Chinese developers in getting their games into the PlayStation platform. It is a video game development acceleration programme. Only seven of the seventeen goods have made it to shop shelves thanks to this programme.

Kuangyi Zhou, the previous director of the China Hero Initiative, told Reuters in April, “We’ve been silent for the past two years, but the project is still running strong.” “There is no question that new games will be release. We’re please with how well all of the games produced under the programme have performed.”

In 2019, Sony partnered with miHoYo, a previously unknown studio developing on “Genshin Impact.” When it was releas the next year, the game was a big success. It is exclusively available on the PlayStation and may be play on PCs, handheld consoles, and the PlayStation.

According to two individuals who understood what was going on, Microsoft felt terrible about not receiving “Genshin Impact.” One of them said that they had spoken with miHoYo early in the game’s development, but they couldn’t come to an agreement. According to the second source, this is why Microsoft is now more interested in employing Chinese programmers than it was before.

“Picking up ‘Genshin Impact’ earned Sony a lot of money,” said a second individual. Who did not want to be identify since the material is confidential.

According to Sensor Tower, “Genshin Impact” has grossed $3 billion on mobile devices since May. However, there are no console sales figures for “Genshin Impact.”


For most of the twenty-first century, Chinese gamers favoured overseas releases over domestic ones. Because they believed the quality was higher. Tencent Holdings Ltd is now the market leader in China. Although it began as a corporation that marketed Western video games in China.

As the market expanded to become the largest in the world. Local creators began to focus more on creating better games. This tendency was aid by the return of engineers from prominent businesses. Like as Ubisoft Entertainment SA and Activision Blizzard Inc. As well as restrictions restricting the quantity of new games and imports.

Because of its creative production values and ability to be play on numerous platforms at the same time. Executives in the game business have dubbed “Genshin Impact” a watershed moment. Apple Inc. utilised the game to demonstrate the capabilities of its high-end goods. Such as the new iPad Air, which has the company’s newest M1 CPU chip.

The release of “Naraka: Bladepoint” by NetEase Inc. in 2021 was equally significant. The fact that “Naraka: Bladepoint” has sold so many copies for $20 apiece proves that gamers trust in its quality.

According to two reports, Microsoft and Sony were both interest in the game. According to one of them, Microsoft’s Game Pass was the only one available. In June due to NetEase’s concentration on the programme.

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