Summary of Key Points
In the summer of 2026, MiHoYo faced two contrasting incidents: on one hand, it took criminal action to severely punish UPholders who leaked game content (the first case to apply the new judicial interpretation regarding game piracy), demonstrating its strong stance in protecting original content; on the other hand, it was sued by hundreds of creators due to an outsourcing intermediary's failure to pay them, revealing flaws in its ecosystem management. These events highlight the deep contradictions of China's gaming industry during a period of "stagnant growth." Original companies must not only safeguard their content but also maintain a fragile creator ecosystem while competing with giants like Tencent and NetEase for survival space. As a representative of the "content-first" approach, MiHoYo is facing the critical challenge of transitioning from relying on hit games to achieving sustainable development.
1. The Piracy Case: Why Did MiHoYo Send the UPholders to Jail?
For MiHoYo, unrevealed game content is its lifeline. For instance, "Genshin Impact" generates revenue through version updates and character card packs—players are willing to spend money on these because they look forward to new storylines and characters. If the content is leaked in advance, players lose interest, disrupting the carefully planned marketing strategy (for example, a surprise release turns into old news). The two leaked videos received 600,000 and 300,000 views respectively, which, according to the new judicial interpretation, constitute serious offenses. Therefore, MiHoYo resorted to criminal action to protect its business interests and serve as a warning to others. However, this raises the question: does protecting original content create tension within the creator ecosystem?
2. Creators Demanding Payment: Why Is MiHoYo Blamed for the Outsourcing Issues?
MiHoYo's creators (such as those who make game videos and guides) are its key traffic drivers; although they are not employees, they help promote the games and keep the community active during periods without new content releases. To reduce management costs, MiHoYo outsourced some projects to Yunnan HaoXi Company. However, HaoXi took MiHoYo's money but failed to pay the creators. Although MiHoYo quickly blocked the intermediary and promised to support the creators, it still faced criticism because the public only sees MiHoYo as the responsible party, ignoring the intermediaries. This exposes a management flaw: MiHoYo wants to benefit from the creators' traffic but avoids taking direct responsibility, shifting the risks to others, which ultimately damages its reputation.
3. Industry Competition: How Much Pressure Does MiHoYo Face?
The gaming industry is in a phase of stagnant growth, with the market size and player spending remaining relatively stable (with little increase in 2025). Player expectations have risen due to games like "Genshin Impact," leading to significantly higher development costs (e.g., MiHoYo spends hundreds of millions of dollars on each game and employs hundreds of people). Small and medium-sized companies can't afford this, and giants like Tencent and NetEase are entering new markets (e.g., with "Honor of Kings: World"). MiHoYo's early advantage is being eroded. Additionally, MiHoYo relies on the novelty of its games; once players complete the story or exhaust the card packs, they lose interest, forcing it to release updates frequently and constantly managing the risk of leaks.
4. MiHoYo vs. Tencent and NetEase: Different Approaches, Different Stabilities
- Tencent: It follows a "platform logic"—its core is its 1 billion users on WeChat and QQ, using games as tools for revenue generation. It doesn't need to develop all games itself; investing in successful companies and hosting them on its platform provides strong risk resistance but limits innovation.
- NetEase: It focuses on "operation logic," excelling at long-term game management (e.g., "Reverse Water Cold" mobile game uses AI to reduce costs, and "Egg Boy Party" retains players through social interactions, resulting in slow but sustained success).
- MiHoYo: It believes in the power of good content, as proven by "Genshin Impact," but its weakness is its reliance on the aesthetic preferences of its founding team (from Shanghai Jiao Tong University), making it difficult to scale. It also faces challenges from Tencent's platform advantages (e.g., traffic control and investment in competitors).
5. What Does MiHoYo Need to Survive?
To become a lasting success, MiHoYo must overcome three hurdles:
- Move from a single hit game to a diversified product portfolio: "Genshin Impact" was a huge success, but it can't rely on just one. It needs a steady stream of high-quality games.
- Shift from an ecosystem to platform governance: Creators are essential assets; MiHoYo must establish direct contracts and ensure fair compensation, similar to how Tencent regulates outsourced projects or ByteDance uses tools to standardize transactions.
- Balance idealism with commercial resilience: While MiHoYo's focus on quality content is admirable, it needs more rational cost control and diversified revenue sources (e.g., AI, animated films) to be sustainable.
Conclusion
MiHoYo's story reflects the transition of China's gaming industry from a "channel-centric" to a "content-centric" model. It demonstrates the power of original content but also highlights its vulnerability. In a competitive market dominated by giants, MiHoYo may not become the next Tencent or NetEase. However, such companies are needed for the industry's growth. To succeed, they must find a balance between protecting creativity and maintaining an ecosystem, while also addressing practical challenges. This is the true "uncertain future" for MiHoYo.