HoYoverse Pursues AI Integration Amid Declining Sales and Expansion of Game Portfolio

HoYoverse, the Shanghai-based developer renowned for its hit game Genshin Impact, is venturing into artificial intelligence as part of its strategy to diversify beyond its popular anime-inspired titles. This initiative follows a significant 23% decline in sales over 2024, leading to revenues that dipped to approximately US$4.7 billion. While Genshin Impact has achieved remarkable success, generating US$6.2 billion in mobile revenue since its launch in 2020, the company is recognizing the need to innovate as competition intensifies.
Newer titles like Honkai: Star Rail and the upcoming Zenless Zone Zero have reportedly drawn player interest away from earlier games in HoYoverse’s lineup. In response, the company is not only exploring AI technologies but also developing new genres, such as open-world games and farming simulators, to engage a broader audience. This strategic shift aims to capture the attention of consumers looking for fresh and varied gaming experiences, allowing HoYoverse to establish a more resilient portfolio.
To facilitate this transition, HoYoverse has actively recruited experienced developers from major studios, including Ubisoft and Electronic Arts. This infusion of talent is expected to bring innovative ideas and advanced game design techniques to its projects, ultimately enhancing the quality and competitiveness of its upcoming releases. As the gaming industry continues to evolve rapidly, HoYoverse’s commitment to AI and genre diversification signifies its determination to remain a prominent player in the market, catering to diverse gaming preferences while addressing the challenges posed by decreasing sales in its traditional offerings.