China’s Gaming Revolution: Black Myth: Wukong Breaks Records, Ignites Global Ambitions for Future AAA Titles

China’s first major foray into the global AAA gaming scene has set new standards with the unprecedented success of Black Myth: Wukong. Launched on August 20, the action-adventure game, set in a mythological China, sold over 10 million units within just three days of its release. As of 10 days post-launch, the game remains the top-grossing title globally on Steam, priced around $60.

Dino Ying, chairman of Hero Games—a co-publisher and early investor in the game’s developer, Game Science—shared exclusive insights with CNBC. Ying emphasized that Black Myth: Wukong has demonstrated that Chinese-developed AAA games can achieve significant international success. “I believe the next big AAA game is on the horizon,” Ying stated, hinting at at least one other major project in development, though he refrained from disclosing specific details or timelines.

Despite initial setbacks, including failed projects and a significant investment of 60 million yuan (approximately $8.5 million) into prior Game Science ventures, Hero Games remained committed. Ying described his reaction to a promotional video of Black Myth: Wukong as one of awe, recognizing the game as “the best I have seen in my life.” This confidence led to Hero Games investing further and Tencent acquiring a 5% stake without interfering with the game’s development.

The game’s success underscores a pivotal shift in China’s gaming industry. Following Beijing’s regulatory crackdowns and the suspension of new game approvals, which affected the market’s growth, Black Myth: Wukong was approved by the government in February without requiring alterations. Ying suggests that the recent regulatory environment has become more supportive of the industry.

The domestic market for games in China saw sales of 147.27 billion yuan in the first half of the year, but console games represented a mere 0.5% of this total. However, the success of Black Myth: Wukong has driven increased sales of PlayStations and upgraded graphics cards, paralleling how The Legend of Zelda boosted Nintendo Switch sales.

Globally, sales of Chinese-developed games surged to $16.4 billion in 2023, up from $11.6 billion in 2019. This growth reflects a growing global appreciation for the unique cultural elements embedded in these games. Ying believes China has a wealth of timeless stories ready for adaptation into future games, driven by centuries-old narratives that resonate across cultures.

In parallel, China’s indie gaming scene is also making waves. Shanghai-based Cotton Game, known for its hand-drawn indie title Sunset Hills, recently won accolades for best development team and game of the year at major gaming conferences. The game, which combines art and thoughtful content, launched on Steam and Kickstarter, highlighting the diverse talents emerging from China’s gaming industry.

As China’s gaming sector continues to evolve, the success of Black Myth: Wukong and the rise of indie developers like Cotton Game signify a burgeoning era of global influence and innovation.