The so-called AI is artificial intelligence (Artificial Intelligence), the English abbreviation is AI. It is a new technical science that studies and develops theories, methods, technologies and application systems for simulating, extending and expanding human intelligence.
The concept of AI application refers to the downstream scene where AI technology is applied. This is a very big concept. Today we mainly introduce the concept of AI + games.
Compared with other applications, AI's empowerment to the game industry is obvious. The application of AI in the game industry can be said to cover the whole process. From pre-launch to post-launch, from planning, development, design to operation, AI is everywhere. This is also the significance of AI applications in the game industry: empowering the entire industry chain to upgrade.
On the cost side, the role of AI as a production tool is to improve quality, increase efficiency, and reduce costs. The application of technologies such as AIGC can help batches and automatically generate core element resources such as copywriting, music sound effects, and graphics in the game development process, reduce game development and operating costs, improve production efficiency, and increase the overall profit level of the game.
On the revenue side, the role of AI is to improve the game experience of players, and drive the increase in the number of users, duration, payment rate and ARPPU. Through intelligent NPC, intelligent man-machine and other technologies, AI can realize in-depth interaction between players and NPC, enrich the game experience, and improve the interactivity of the game. When the game experience is better, players will naturally be more sticky to the game and more willing to spend money.
From the perspective of financial statements, the function of generating multiple perspectives was only started in March, and it gradually became proficient in the second quarter, and the finished product effect may gradually appear in the third quarter. Therefore, the results of game cost reduction and efficiency increase may gradually appear in the second or third quarter reports.
Combining the concentration of chips and market performance, Securities Star screened the top ten concept stocks. As shown below:
Hot topics on April 24 | "AI+Game" top ten concept stocks
Among them, Xinghui Entertainment, Tom Cat, and Kunlun Wanwei have received more market attention. The following is a brief comment on these three stocks.
Xinghui Entertainment: There are multiple game version numbers in reserve. Among them, "Battlefield Without Borders" was developed by Xinghui Games' self-developed studio of high-quality games such as "Heroes of the Three Kingdoms - Overlord's Industry" and "Overlord's Ambition", and was released by Tencent as an exclusive agent in mainland China. It has won the 2022 Golden Plume Award "Mobile online game that players are most looking forward to".
Tom Cat: A frequent visitor to the hype of hot concepts in the market. In the previous metaverse hype, Tom Cat was the target of market hot hype. In the hype of this round of AI+ games, Tom Cat can also be called the first batch of startups. In late January, A shares began to hype the concept of Chatgpt. At the beginning of February, Tom Cat mentioned in the reply on the investor platform that it kept an eye on the latest trends in the industry and the generative AI tool ChatGPT. At present, the team has tried to apply the ChatGPT model for preliminary testing of AI interactive product development
Kunlun Wanwei: In terms of revenue structure, Kunlun Wanwei’s game business revenue in 2022 will be 727 million yuan, accounting for 15% of total revenue, a year-on-year decrease of 6.3%. This income mainly comes from the mobile game platform GameArk, and part of it comes from the social networking platform Xianlaihuyu.
In the 2022 financial report, Kunlun Wanwei bluntly stated that in the next ten years, the company will firmly "All in" AGI (General Artificial Intelligence) and AIGC.