The new studio will be based in downtown Montréal and plans to scale to over 100 staff within the next year.
According to Montréal Investment, an investment promotion agency, the Chinese firm’s next game will be a "brand-new Triple A open-world action-adventure game featuring shooting-based gameplay within a living, breathing paranormal world".
Few details are available about the title, however, MiHoYo has posted several job listings for the new office, including a vehicle level designer and a senior technical artist to create a destruction system.
Furthermore, MiHoYo is working with Montréal Investment and Investissement Québec on education and recruitment schemes.
MiHoYo in Montréal
The new studio is most likely a result of the worldwide success of Genshin Impact which generated $2 billion within its first year on mobile alone.
"We are committed to publishing our games globally across console, PC and mobile platforms, owing to our thriving in-house distribution capabilities," said MiHoYo co-founder Forrest Liu.
"We have gained a plethora of game development and operations experience as a result of Genshin Impact’s recent global release, which we can harness to create even higher-quality games for our players.
"Montréal is home to a thriving game development community and is well-known for its world-class universities. We deeply value the expertise and creativity that the local ecosystem provides and believe it will empower miHoYo to create games with their imagination."
Also under development from MiHoYo is the latest addition to the Honkai series, Honkai: Star Rail, which is currently in soft launch.