Black Myth: Wukong – More Than Just a Game
What is behind the heated game?
As the global gaming community buzzes with excitement, one game is not only breaking records but also breaking barriers. Black Myth: Wukong is more than just a viral sensation; it's a cultural revolution that could redefine the future of Chinese game development on the world stage. What makes this game so special, and what opportunities could it unlock for investors? Let's dive in.
Record-Breaking Success
"Black Myth: Wukong" is an action role-playing game developed by the Chinese independent game development company, Game Science Studio. Since its trailer release, the game has garnered widespread global attention. After its official launch on August 20th, the game reached a peak of 2.4 million concurrent users on Steam. It became the most popular action role-playing game and ranked second on the overall game charts in terms of daily active users , just behind the free PlayerUnknown's Battlegrounds. Across all platforms, the game sold over 4.5 million copies, with total sales exceeding 1.5 billion RMB (210 million USD), topping global sales charts. According to Metacritic, a global game review website, as of August 19th, the game had received an average score of 82 from 54 global media outlets.
"Black Myth: Wukong" is based on the classic Chinese novel Journey to the West. This cultural background not only appeals to the domestic market but also has sparked significant interest globally. With its stunning visuals, rich storytelling, and innovative gameplay mechanics, "Black Myth: Wukong" showcases the immense potential of the Chinese gaming industry. This analysis will explore the game's development background, market analysis, the impact on the Chinese gaming industry, and related investment opportunities.
Development Background: The Story Behind
Feng Ji, CEO of Game Science, born in 1982 and a graduate of Huazhong University of Science and Technology with a degree in Biomedical Engineering, was initially set to become a rigorous academic. However, the 2004 release of World of Warcraft drew him in, and he made an extraordinary decision at a crossroads in his life: to abandon his plans for graduate school and pursue a career in gaming. This decision altered his life trajectory. His online alias "yocar," is a tribute to that period of his life.
Feng Ji's passion for gaming led him from being a gaming enthusiast to becoming a game designer. In 2008, he joined Tencent, becoming the lead designer for Asura, marking the beginning of his journey in the gaming industry. It was during this time that he met another key figure, Yang Qi. Born in 1985 in Nanjing, Jiangsu, Yang Qi was deeply influenced by traditional Chinese art from an early age, beginning to learn painting at just five years old. He later enrolled in the Oil Painting Department of the China Academy of Art and eventually entered the field of game design. Yang officially entered the gaming industry in 2005, gradually accumulating a wealth of experience. In 2008, he joined Tencent and worked alongside Feng Ji on the development of Asura.
In 2014, recognising the enormous potential of the gaming market, they left Tencent and co-founded Game Science Studio, determined to forge their own path in creating original games. In 2017, Game Science released the real-time strategy game Art of War: Red Tides. The success of this game brought both commercial returns and industry recognition to the team. (Fun fact: "Red Tides" is also the name of one of the early-stage weapons obtainable in "Black Myth: Wukong.")
The unfulfilled potential of Asura remained a lingering regret for Feng Ji and Yang Qi. In 2018, Feng Ji led his team on a more challenging journey—the development of the single-player action game "Black Myth: Wukong." This small team of only seven members carried the hopes of countless players. Under Yang Qi's artistic direction, the game's visual style carried forward the legacy of Asura. Yang Qi insisted on originality in game design, rejecting the copying of Western game models, and emphasised the integration of Chinese culture and art. This approach solidified Yang Qi's importance in the field of Chinese game design. The game's first trailer, released in 2020, instantly ignited global interest in the gaming community, catapulting Game Science to overnight fame and attracting strategic investment from Tencent. After six and a half years of development, the game was finally released on August 20, 2024, becoming the first Chinese AAA title.
What is a AAA Game?
AAA, or "Triple-A," represents the highest quality rating in the gaming industry. "AAA" typically stands for "A lot of money," "A lot of resources," and "A lot of time." In simple terms, a AAA game is a single-player game with high development costs, long development cycles, and significant resource consumption.
Market Analysis:
Business Model and Revenue Expectations
Game Science adopted a "buy-to-play" business model rather than the more recent "free-to-play + in-app purchases" model. Although this approach may generate less revenue in the short term compared to the in-app purchase model, it attracts more core players who prioritise game quality and avoids the negative feedback often associated with in-app purchases. Additionally, as the game's reputation spreads and the player base grows, subsequent DLCs, merchandise, and potential film adaptations are likely to bring additional revenue to the company.
Competition and Development Cost
In the global gaming market, the action role-playing game genre is highly competitive. "Black Myth: Wukong" will face direct competition from well-known titles such as Dark Souls and God of War. However, with its unique Eastern cultural background and stunning visual presentation, the game has the potential to stand out, especially among players interested in Chinese culture.
From a technical standpoint, "Black Myth: Wukong" utilises Unreal Engine 5, achieving unprecedented levels of visual and physical realism. However, the development team faces significant challenges. Although the Game Science team has accumulated experience and technical expertise, achieving success in the global market requires addressing complex issues such as multi-platform adaptation, global server optimization, and cross-cultural translation. Unlike other AAA games, "Black Myth: Wukong" has not yet been released on the Xbox platform. Prior to its release, the game was involved in a controversy with the well-known review site IGN, highlighting the challenges of the international market.
"Black Myth: Wukong" has been costly to develop. Feng Ji mentioned that the hourly development cost ranged from 15 to 20 million RMB (2.1-2.8 million USD). The game took over five years to develop, with production costs potentially reaching 300 to 400 million RMB (42-56 million). In addition, there were significant marketing expenses and platform fees, which can take up to 30% of the revenue.
Market Potential Analysis
As the Chinese game market rapidly grows, domestic game developers are gradually making their mark. According to data from market research firm Newzoo, the global game market is expected to reach $218.8 billion in 2024, with the Chinese market accounting for a significant portion. As a game with international potential, "Black Myth: Wukong" is poised to bridge cultural exchange between Eastern and Western markets. Based on the classic character Sun Wukong from the ancient Chinese novel "Journey to the West," this IP has deep roots in Chinese culture while enjoying widespread recognition globally. The game combines traditional Eastern cultural elements with modern, high-quality game production, giving it enormous potential in the global market, especially in the West. As the Chinese game market continues to grow, this game has the potential to become a new benchmark for Chinese games in the global market.
However, from the perspective of the entire game market, the GTX 1060 graphics card requirement is enough to exclude most white-collar workers using office laptops. In comparison, in the mobile game market, top games often achieve monthly revenues exceeding 1 billion and player numbers surpassing 100 million. In 2023, global mobile game revenue reached $76.7 billion. In China in 2023, mobile games and game advertising accounted for 87% of the entire gaming industry, with mobile game actual sales revenue accounting for 74.88% of the total game sales market. The single-player game market is relatively small in comparison. These factors also limit the ceiling for "Black Myth: Wukong."
Impact on the Chinese Game Industry
"Black Myth: Wukong" is not just an attempt by Game Science but also an important exploration for the entire Chinese game industry. The success or failure of this game will have a profound impact on the positioning of Chinese games in the international market. If "Black Myth: Wukong" succeeds in the global market, it will greatly enhance the international influence of Chinese games and may inspire more Chinese game companies to follow suit, launching high-quality original IP works.
Goldman Sachs' latest research report suggests that the Chinese game industry, especially the private market, may attract more investment due to the success of "Black Myth: Wukong," and more AAA games may enter the global market in the future. Tencent and NetEase are likely to continue investing in high-quality PC/console games to compete for market share with global peers, while also driving the development of related operations, promotion, and user communication platforms.
Meanwhile, Xinhua News Agency has also interviewed the founder, indicating that the Chinese government may further support the Chinese game industry, especially the export of high-quality content, and gradually recognises the industry's potential value in exports and culture.
For Investors
From a global game development perspective, the entire industry continues to expand year by year, with an average growth of 8% from 2017-2023, and the global game industry employs over 330,000 people. Even with a slight decline in 2022, the industry was still worth $361.8 billion, compared to the music industry's value of $31.2 billion and the film industry's value of $93.4 billion in the same year. The value of the game industry is nearly three times the combined value of the film and music industries.
Some investment opportunities include:
Related Technology Companies: Companies providing the technology and tools for game development, such as those involved in creating game engines, graphics software, or hardware optimization, could see increased demand.
Distribution Platforms: Digital game distribution platforms like Steam, Tencent's WeGame, or other emerging platforms could benefit from the increased popularity of games like Black Myth: Wukong.
Merchandising and Licensing: With a successful game, there's potential for merchandise, such as action figures, apparel, and other branded goods, as well as licensing opportunities for movies, series, or other media. For instance, Luckin Coffee launched a themed coffee and merchandise collaboration, with over 100,000 units of the "Tengyun Americano" sold, according to their platform data. Thanks to this marketing campaign, along with other favorable factors such as international expansion, Luckin's stock surged 7.14% in the US OTC market on August 19th, increasing its market value by approximately $400 million.
Esports and Content Creation: The game's success could lead to opportunities in esports or content creation, such as streaming or video content on platforms like Bilibili, YouTube, or Twitch. Companies involved in gaming content production, streaming services, or esports leagues could see growth.
"Black Myth: Wukong" represents an important attempt in quality and cultural export for Chinese game development. Its success will not only be reflected in sales figures but may also usher in a new era for the Chinese game industry. For investors, the development of the global game industry and the progress of original Chinese games are worth paying attention to.
Created by Yiding