China's Gaming Public Shows Strong Appetite For Generative AI

A notable surge in interest marks China's gaming community, with nearly four in 10 individuals expressing a keen desire for generative AI within gaming platforms.

A recently circulated report indicates that 39 per cent of gamers in China would welcome the integration of generative artificial intelligence into their gaming experiences. This figure underscores a significant shift in consumer expectations and highlights generative AI's burgeoning role as a differentiator in content creation and gameplay dynamics.

The country's generative AI gaming market is undergoing remarkable growth. A detailed forecast places market value at approximately USD 319.7 million in 2024, rising sharply to an anticipated USD 5.3 billion by 2035, driven by a robust compound annual growth rate of around 29 per cent. This surge is attributed largely to concerted efforts by major players such as Tencent, NetEase, ByteDance, MiHoYo and Alibaba – all heavily investing in generative AI technologies that promise tailored and dynamic gaming experiences.

Governmental backing is shaping much of this momentum: the Ministry of Industry and Information Technology has been advancing policies to encourage AI-driven innovation within the digital economy, reinforcing investments and research in generative AI applications across the gaming landscape.

On the technological front, Tencent recently introduced its Hunyuan 3D-generation system early this year. The platform enables the creation of 3D assets and environments using text prompts, streamlining content generation and unlocking new avenues for immersive game design. NetEase has also made strides by embedding AI-driven features into its mobile games, most notably with dynamic non-player characters that respond with lifelike reactions. Its upcoming title, Justice Online Mobile, will reportedly incorporate chatbot-style AI dialogue systems to allow players to engage in nuanced conversations with NPCs that may alter game progression.

Cloud gaming is emerging as another vector for AI's influence. Tencent's cloud gaming platform, START, developed in partnership with NVIDIA, enables users on low-end devices to stream AAA-quality games-blending AI, cloud infrastructure and advanced hardware to expand access and redefine the gaming experience.

Emerging trends include generative AI's application across multiple stages of game production-from content creation and level design to character animation, testing and quality assurance. Mobile platforms, PC, console and cloud gaming are all key battlegrounds, assisted by both on‐premises and cloud-based deployment models. On-premises models offer enhanced control and data security, whereas cloud deployments grant scalability, faster updates and foster collaborative development.

China's gaming population, exceeding 600 million users, offers a vast and varied demographic. That scale is bolstering demand for personalised, generative experiences.

Beyond purely technological innovation, generative AI is starting to influence the narrative and emotional depth of gameplay. NPC interactions, procedurally generated story arcs and real‐time adaptations informed by AI are creating fresh, immersive layers of engagement. Developers – both established studios and indie creators – are experimenting to align with gamer preferences and refine the interplay between narrative and agency.

Regulatory frameworks are also evolving. The Cyberspace Administration of China and other authorities introduced“Interim Measures for the Management of Generative AI Services” in August 2023. These regulations aim to ensure ethical application and secure deployment of generative AI technologies across public services – including gaming.

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