According to recent financial news, MiHoyo - developers of Genshin Impact - made more profit in 2022 than major players like EA, Activision Blizzard and even Embracer Group.
According to a translated article by Chinese media outlet Guangming Daily (via Game World Observer), Mihoyo made an estimated $3.83 billion in revenue in 2022m, with net profit of $2.26 billion. Although companies like TakeTwo ($5.35bn), Activision Blizzard ($7.52bn) and EA ($7.42bn) had higher revenues, none matched the Chinese developer in terms of profit.
Mihoyo still trails behind perennial Chinese heavyweight Tencent, however earlier in May it passed NetEase in terms of revenue. The comparison, if accurate, gives an idea of just how massive the Chinese market is and, in terms of raw profit, how it can measure up to even massive game makers in the US and abroad.
China’s market share
If accurate, this gives a greater idea of just how massive the Chinese market - market forecast to hit $57 billion by 2027 - is. This resilience and growth is especially important in the wake of pandemic restrictions, legislative crackdowns and licensing freezes that have hit the country’s game market. For many game makers looking for outside investment, the affluence of Chinese companies like MiHoYo will see a tempting proposal. And with the developer looking to compete with the likes of Tencent it may be that we see them taking the same tactic of investing into Europe and other markets in the near future.
It is worth noting that, in the near future we may be looking at Mihoyo less as the Genshin Impact developer, and more notably as the developers of their latest game Honkai: Star Rail. Although Genshin Impact recorded its lowest revenue yet, their new title is soaring, suggesting it may soon be the flagship game for Mihoyo.