In June 2024, a report in the MIT Technology Review shows how AI is reinventing video games. Venture firms are investing in gaming start-ups, many of which utilise AI technologies to create immersive experiences while streamlining game development.[1]
AI-augmented games from China have gained commercial success worldwide. Tencent and NetEase, China’s two largest gaming companies, have achieved significant global reach with their gaming portfolios. Popular games such as Tencent’s Honor of Kings and NetEase’s Justice use AI technologies such as machine learning and natural language processing to create dynamic, adaptable non-player characters that interact with players in sophisticated ways.[2] Tencent continues to invest in its global presence, recently announcing a US$15 million investment to develop a comprehensive global esports ecosystem.[3] NetEase also has made strides in the international market with titles like Harry Potter: Magic Awakened, a mobile game co-developed with Warner Bros. This demonstrates NetEase’s strategy of leveraging high-profile IPs and partnerships to expand its global reach.[4]
The recent global hit Black Myth: Wukong, developed by Game Science, garnered over US $400 million on gaming platform Steam within three days.[5] In the game, AI enhances character animations and refines facial expressions, including for the main character, the Monkey King Wukong. AI also creates an immersive sound environment with dynamic, real-time adjustments.[6]
The tightening of the approval process for domestic game releases in 2018 and government restrictions on the time children and teenagers can spend on video games from 2021 have spurred Chinese game developers to turn to international markets.[7] The COVID-19 pandemic fueled the gaming industry’s explosive growth.[8] A wave of new gamers worldwide presented developers everywhere with a much larger audience and diverse opportunities for profit. This is evident in the case of Honkai: Star Rail, developed by Chinese game developer miHoYo, where over 40 percent of its revenue in 2023 came from overseas.[9] Released in April 2023, the game integrated AI technologies to improve the facial expressions and actions of characters, and enhance the immersive experience.[10] It won Apple’s iPhone Game of the Year Award in 2023[11] Similarly, Genshin Impact, released in 2020 by miHoYo, reached an accumulated revenue of US$5 billion by February 2024.[12] To capitalise on this global market, miHoYo established Cognosphere in 2022, a publishing arm based in Singapore. According to its website, it has 5000 employees across offices in the United States, Canada, Korea, Japan, and Singapore.[13]
AI-powered, globally appealing content
Genshin Impact is about an adventure to seven different imaginary lands;[14] its locales feature the architectural styles of six world regions, including China (Liyue), Japan (Inazumau), Germany (Mondstadt), France (Fontaine), South Asia and Middle East (Sumeru), and South America (Natlan). For example, Inazuma features structures inspired by traditional Japanese pagodas and Shinto shrines. The Cathedral of Mondstadt is a prominent example of Gothic architecture with pointed arches, ribbed vaults, and large stained-glass windows. Sumeru’s architecture features Islamic design elements such as intricate tilework, large domes, and minarets. Honkai: Star Rail features an interstellar travel story woven through with themes of commercial space travel, Mars exploration, and the climate crisis. This narrative blend of futuristic space travel and dystopian concerns has global resonance.
Screen capture by user playing Genshin Impact. (Source: Flickr)
MiHoYo also frequently releases promotional materials such as videos combining scenes in video games with Chinese cuisine,[15] festivals,[16] and arts.[17] gameplay trailers, and songs in multiple languages to create an inclusive experience for players in different countries.[18] Genshin Impact supports thirteen text languages (English, Simplified Chinese, Traditional Chinese, Japanese, Korean, Indonesian, Thai, Vietnamese, German, French, Portuguese, Spanish, Russian) and four voice-over languages (English, Chinese, Japanese, Korean).[19]
The founder of miHoYo, Cai Haoyu 蔡浩宇, graduated with a computer science degree from Shanghai Jiaotong University. He founded the company’s AI research lab in 2020, establishing the company as a leaders in enhancing game designs with AI technologies.[20] The company developed an AI tool[21] allowing players to upload their photographs into the system and transform them into the pink-haired main character ‘March 7’ in the game Honkai: Star Rail. This AI-driven customisation enhances player engagement.
MiHoYo aims also to harness the power of large language models to generate scripts for gaming characters.[22] The company’s AI lab has co-authored academic papers with Fudan University on the topic of AI agents[23]—autonomous characters whose behaviour and dialogue can be dynamically generated. This research promises to enhance efficiency and enrich player experiences with diverse and dynamic dialogue. The challenge lies in ensuring that AI-generated narratives are contextually appropriate and meaningful.
Strengthening ‘cultural confidence’
The Communist Party of China’s policy focus on strengthening ‘cultural confidence’ 文化自信 also guides its video game industry’s global expansion. An often-overlooked section of the entertainment industry, the global video game market is in fact more than twice the size of the combined cinema and music markets.[24] Video games showcase technological innovation, cultural dynamism, and aesthetic values and are potential powerful ways to promote cultural narratives and soft power. MiHoYo consciously infuses state-approved cultural elements in its AI augmented game design. Lumi, an all-singing, all-dancing digital avatar, for example, references the poem ‘youyou luming’ 呦呦鹿鸣 from the classical Book of Songs 诗经. The phrase means the joyful bellowing of deer but in nationalistic discourse signifies a prosperous country and harmonious society.[25] The Genshin Impact theme song The Divine Damsel of Devastation 神女劈观 is sung in the style of Peking opera. The music video drew a remarkable and over 13,000 comments on YouTube.[26]
Genshin Impact cosplay. (Source: Flickr)
Media reports in China celebrated Lumi, Genshin Impact, and other miHoYo products for their dedicated efforts in promoting traditional culture as IP content to a global audience, quoting glowing fan reviews that mention the attraction of Chinese culture.[27] One report credited miHoYo as an exemplary case of ‘Chinese culture going global’ 文化出海.[28]
MiHoYo has also collaborated with the Sanxingdui Museum in Sichuan province,[29] creating characters, narratives, and treasures in Genshin Impact inspired by gold mask and bronze sculptures discovered in the Sanxingdui archeology site, which the CPC has been touting as part of its campaign to promote the notion of continuous Chinese civilisation.[30] MiHoYo also announced its plan to develop Genshin Impact and Honkai: Star Rail into animated films.[31] The project is supported by the Shanghai Municipal Government as part of its efforts to boost the city’s movie industry.[32]
Concerns over censorship and data privacy
The international success of Chinese gaming companies such as Game Science, Tencent, NetEase, and miHoYo, as with the short-video platform TikTok, has engendered concerns over data privacy, national security in countries including the United States and Australia, and content policy.[33] For instance, ahead of the debut of Black Myth: Wukong, a company affiliated with the game’s developer sparked controversy by issuing a list of forbidden topics for livestreams, including politics, feminism, and China’s video game industry policies.[34] The game developers have been accused of fostering a misogynistic culture within the company.[35] The lack of inclusivity and the promotion of such an anti-feminist stance alienates a significant portion of the gaming community.
Adding to this criticism, Black Myth: Wukong which draws inspiration from the sixteenth century novel Journey to the West 西游记 has significantly altered the portrayal of female characters. The original story includes powerful female characters like the Princess Iron Fan and the Female King of Women’s Country, who possess significant agency.[36] These characters have special powers and play crucial roles, either aiding or obstructing the journey of the monk and the Monkey King. Yet, Black Myth: Wukong largely sidelines female characters, simplifying and demonising them in ways that strip away their original complexity.
Regarding to the issue of data privacy, The collection of massive amounts of user data also poses ethical issues not confined to Chinese companies: the US social media giant Meta was fined for $1.3 billion for violating EU data privacy laws in 2023.[37] The issue for Chinese firms is compounded by concerns about the lack of transparency and explicit rejection of global human rights standards by China’s governing Communist Party. Faced with such concerns, Cognosphere, miHoYo’s Singapore-based publisher, has made several updates to its privacy policy outlining user rights, including over personal data, the right to rectify inaccurate data and request the deletion of personal data.[38] The company stores user data on servers located in several regions, including the United States, Hong Kong, the European Union, Singapore, and Japan.
There is still room for bilateral or multilateral negotiations about the kind of personal information about players the Chinese companies are allowed to collect, the location and monitoring of data servers and clear consent regarding the collection and use of personal data such as voice and location.
In conclusion, the global expansion of China’s AI-augmented games has largely been propelled by restrictive government policies at home. Yet while China’s gaming companies have enjoyed wide popularity and economic success internationally through inclusive narratives, successful marketing and AI technology, governments need to address data privacy. Proactive measures on data privacy and less content restriction would help the games’ potential to enhance Chinese cultural soft power.
Notes:
[1] Niall Firth, ‘How generative AI could reinvent what it means to play’, MIT Technology Review, 20 June 2024, online at: https://www.technologyreview.com/2024/06/20/1093428/generative-ai-reinventing-video-games-immersive-npcs/
[2] Kai Er, ‘How does AI improve video games?’ AI 怎么把游戏变好玩? Sina Finance, 17 May 2023, online at: https://finance.sina.cn/blockchain/2023-05-17/detail-imyuaqhw5560477.d.html
[3] Craig Chapple , ‘Honor of Kings set for June 20th global launch after $15 billion+ revenue in China’, PocketGamer, 16 May 2024, online at: https://www.pocketgamer.biz/honor-of-kings-set-for-june-20th-global-launch-after-15-billion-in-revenue-in-china/
[4] Carson Taylor, ‘NetEase’s Shifting Global Strategy,’ Naavik, 7 November 2023, online at: https://naavik.co/digest/netease-global-strategy/
[5] Kelly Le and Ann Cao, ‘Black Myth: Wukong is increasing China’s appetite for AAA games, but next one could take years’, South China Morning Post, 24 August 2024, online at: https://www.scmp.com/tech/big-tech/article/3275709/black-myth-wukong-increasing-chinas-appetite-aaa-games-next-one-could-take-years’
[6] Pengpai News 澎湃新闻, ‘Dang chuantong IP yudao xiandai AI, hei shenhua, wukong yong zhongguo wenhua jingyan waiguo wangyou’ 当传统IP遇到现代AI《黑神话：悟空》用中国文化惊艳外国网友, The Paper, 21 August 2024, online at: https://www.thepaper.cn/newsDetail_forward_28481173
[7] Ben Dooley and Paul Mozur, ‘Beating Japan at Its Own (Video) Game: A Smash Hit From China’, New York Times, 18 March 2022, online at: https://www.nytimes.com/2022/03/16/business/genshin-impact-china-japan.html
[8] Simon Read, ‘Gaming is booming and is expected to keep growing. This chart tells you all you need to know’, World Economic Forum, 28 July 2022, online at: https://www.weforum.org/agenda/2022/07/gaming-pandemic-lockdowns-pwc-growth/
[9] Feng Ye, “Tecent, NetEase and miHoYo compete in global market” 腾讯、网易和米哈游的海外战事, 29 March, 2024, online at: https://m.jiemian.com/article/10984774.html
[10] Rebekah Valentine, ‘How Honkai: Star Rail Is Using AI Technology to Supplement Development’, IGN, 2 MAY 2023, online at: https://www.ign.com/articles/how-honkai-star-rail-is-using-ai-technology-to-supplement-development
[11] Apple Newsroom, ‘Apple Unveils App Store Award Winners: The Best Apps and Games of 2023’, Apple Newsroom, 11 November 2023, online at: https://www.apple.com/newsroom/2023/11/apple-unveils-app-store-award-winners-the-best-apps-and-games-of-2023
[12] Nick Rodriguez, ‘Genshin Impact Revenue Record’, Game Rant, 15 March 2023, online at: https://gamerant.com/genshin-impact-revenue-record
[13] miHoYo, online at: https://www.mihoyo.com/en/?page=about
[14] Emily Rose Marlow, ‘Genshin Impact: Every Statue Of The Seven And Where to Find Them’, The Gamer, online at: https://www.thegamer.com/genshin-impact-every-statue-seven-map-location
[15] Genshin Impact, ‘Gourmet Tour: “Liyue’s Cuisine Collection” Issue No. 1 | Genshin Impact Pause (k) 0:07 / 3:50 Gourmet Tour: “Liyue’s Cuisine Collection” Issue No. 2’ , online at: https://www.youtube.com/watch?v=X5Dd78jiSi8&pp=ygUfZ2Vuc2hpbiBpbXBhY3QgY2hpbmVzZSBjdWlzaW5lIA%3D%3D
[16] Genshin Impact, ‘Lantern Rite Promotional Video: Dream Upon a Lantern ‘ online at: https://www.youtube.com/watch?v=2kY4raFWXtM&pp=ygUfZ2Vuc2hpbiBpbXBhY3QgY2hpbmVzZSBmZXN0aXZhbA%3D%3D
[17] Genshin Impact, ‘Genshin Impact X Sanxingdui Museum Collaboration Event Teaser’ online at: https://www.youtube.com/watch?v=g_o9kN3LF5s&t=12s&pp=ygUZZ2Vuc2hpbiBpbXBhY3Qgc2FueGluZ2R1aQ%3D%3D
[18] Andrea Knezovic, ‘Genshin Impact Advertising Strategy Explained’, Udonis, 25 March 2024, online at: https://www.blog.udonis.co/mobile-marketing/mobile-games/genshin-impact-advertising
[19] Genshin Impact, “How to Change Languages in Genshin Impact”, October 4, 2020, online at: https://genshin.hoyoverse.com/en/news/detail/103728
[20] Zhu Taowei, ‘MiHoyo building Metaverse: AI Lab, Digital Avatar, and Neural Link’ 揭秘米哈游Metaverse布局：组建AI“逆熵”团队，自研Avatar，探索脑机接口, Core E-sport, 7 June 2021, online at: http://www.coreesports.net/15932.html
[21] The Paper News, ‘AI becomes a must for MiHoYo’成为了米哈游们的必选项, The Paper, 10 May 2023, online at: https://www.thepaper.cn/newsDetail_forward_23009338
[22] The Paper News, ‘AI becomes a must for MiHoYo’成为了米哈游们的必选项, The Paper, 10 May 2023, online at: https://www.thepaper.cn/newsDetail_forward_23009338
[23] Lumina, ‘AI Agent Launched! Fudan NLP Team Releases 86-Page Paper, Intelligent Society Is Close at Hand’ AI Agent启动！复旦NLP团队发86页长文综述，智能体社会近在眼前, Xinzhiyuan 新智元, online at: https://cloud.tencent.com/developer/article/2351355’
[25] Ren Jiang, ‘Between humans and deer: from the cry of the deer to longevity and prosperity人鹿之间：从呦呦鹿鸣到寿禄呈祥, The Paper, 26 May 2022, online at: https://www.thepaper.cn/newsDetail_forward_18266888
[26] Lumi Dances with the Moon, https://www.youtube.com/watch?v=yqeJM33NKlU
[27] Zhengguan Xinwen, ‘miHoYo Evokes Cultural Heritate to Promote Chinese Traditional Culture米哈游用非遗的形式展现中国传统文化，推动文化出口’, Sohu, 9 June 2023, online at: https://www.sohu.com/a/683502302_120546417
[28] Pan Yu, ‘The Divine Damsel of Devastation Attracts Cover Versions and Sparked Interests in Chinese Opera among Foreign Players《神女劈观》掀起翻唱“内卷”，也让外国玩家迷上中国戏曲’, The Paper, 28 January 2022, Online at: https://m.thepaper.cn/newsDetail_forward_16493488
[29] Genshin Impact, ‘Genshin Impact X Sanxingdui Museum Collaboration Event Teaser’, Genshin Impact Youtube Channel, online at: https://www.youtube.com/watch?v=g_o9kN3LF5s
[30] Christy Choi, ‘Faces of Sanxingdui: Bronze Age relics shed light on mysterious ancient kingdom’, CNN, 16 November 2023, online at: https://www.cnn.com/style/china-sanxingdui-relics-exhibition-nationalism-palace-museum-hong-kong/index.html
[31] Shanghai Municipal People’s Government, ‘Popular Chinese game to have own animation’, Government Online Shanghai, 23 September 2022, online at: https://www.shanghai.gov.cn/nw48081/20220923/015765806ffd4aab97c3395f89ca23cd.html
[32]Kevin Chu, ‘Genshin Impact Movie Update’, Screen Rant, 19 April 2024, online at: https://screenrant.com/genshin-impact-movie-update-hoyoverse-production-ufotable/
[33] Samantha Hoffman, Tilla Hoja, Yvonne Lau & Lilly Min-Chen Lee, ‘Truth and reality with Chinese characteristics’, May 2024, online at:
https://www.aspi.org.au/report/truth-and-reality-chinese-characteristics; see also Dave Aitel and Jordan Schneider, ‘If You Play Videogames, China May Be Spying on You’, Wall Street Journal, 28 October 2020, online at: https://www.wsj.com/articles/if-you-play-videogames-china-may-be-spying-on-you-11603926979
[34] Daisuke Wakabayashi and Claire Fu, ‘Hit Chinese Video Game Seeks to Curb ‘Negative Discourse’, The New York Times, 20 August 2024, online at: https://www.nytimes.com/2024/08/20/world/asia/chinese-videogame-wukong-censorship.html
[35] Rebekah Valentine and Khee Hoon Chan, “How Black Myth: Wukong Developer’s History of Sexism Is Complicating its Journey to the West,” IGN, 20 November 2023, online at: https://www.ign.com/articles/how-black-myth-wukong-developers-history-of-sexism-is-complicating-its-journey-to-the-west
[36] Yanyuan Xu 許燕園, ‘Lun Xiyouji zhong san nvxing renwu xingxiang zhi yiyi ji zhuti huying’論《西遊記》中三女性人物形象之意義及主題呼應, Dissertation, Lingnan University, 2023, online at: https://commons.ln.edu.hk/cgi/viewcontent.cgi?article=1225&context=chi_diss
[37] Adam Satariano, ‘Meta Fined $1.3 Billion for Violating E.U. Data Privacy Rules’, The New York Times, 22 May 2023, online at: https://www.nytimes.com/2023/05/22/business/meta-facebook-eu-privacy-fine.html
[38] Cognosphere PTE. LTD, ‘Privacy Policy’, 18 January 2023, online at: https://genshin.hoyoverse.com/en/company/privacy
