Breaking Boundaries: The Rise of Genshin Impact

For decades, the gaming worlds of China and America seemed worlds apart, with US gamers indulging in diverse global experiences—from whimsical Finnish creations like Angry Birds to beloved Japanese franchises like Pokémon—yet largely ignoring Chinese offerings. This all changed dramatically five years ago with the launch of 'Genshin Impact', revolutionizing perceptions.

This vibrant action RPG, featuring an ensemble of charismatic anime characters battling monsters and embarking on epic quests, was an instant sensation. With players opening their wallets for a shot at winning enchanting characters and powerful weapons, the game reportedly grossed a staggering $6.2 billion from its mobile players, according to Sensor Tower.

HoYoverse's Phenomenal Game Lineup

Riding the wave of success, HoYoverse—the international brand for Shanghai's Mihoyo Co.—followed up 'Genshin Impact' with hits like 'Honkai: Star Rail' and the upcoming 'Zenless Zone Zero', together generating over $8.4 billion in mobile revenue. However, there’s a catch: the company’s titles started competing for the same audience, with each new release causing prior games' revenue to drop dramatically in subsequent quarters.

Facing the Challenge: Sales Slump and Innovation Needed

As a result, HoYoverse experienced a 23% plunge in sales, totaling $4.7 billion in 2024, highlighting the urgent need for fresh avenues of innovation. To tackle this challenge, the co-founder Cai Haoyu, now in his late 30s, made a bold decision to step back from daily operations at HoYoverse and pivot toward something entirely different.

Venturing Into AI with Anuttacon

Cai's next chapter lies in a California-based AI startup named Anuttacon, where he’s exploring groundbreaking technologies to create unconventional interactive media. This transition, initiated in late 2023, was framed as essential for adapting to the company’s evolving landscape. Although a HoYoverse representative emphasized that the two entities remain independent, Cai's move speaks volumes about his vision.

He has welcomed a dozen former HoYoverse employees who share his ambition, launching his first venture—a spacefaring video game where players engage with an AI-generated, charming character.

A Vision Beyond Gaming: The Future of HoYoverse

HoYoverse’s slogan, "tech otakus save the world," reflects its employees' unwavering belief that technology holds the keys to solving future challenges. Mihoyo has invested heavily in cutting-edge ventures, from nuclear fusion to brain-computer interfaces, all part of its audacious aim to create a virtual realm that surpasses reality itself by 2030. This drive led the company to liken itself to tech giants like Apple and SpaceX, boldly declaring, "We have never been just a game company."

As HoYoverse embarks on this journey to reinvent itself, the world watches to see how its fusion of gaming, innovation, and AI will reshape interactive entertainment.