miHoYo will use 30% of revenue from games to make movies?

miHoYo’s global sales are between 26 billion yuan and 30 billion yuan in 2022. According to reports, the studio will spend 20 to 30 percent of its budget on making big movies, regardless of box office profits.

According to revenue data of previous years, miHoYo’s game revenue continuously breaks records. For example, in February 2021, Cai Haoyu, CEO of miHoYo revealed at an event organized by the Silicon Valley Alumni Association of Shanghai Jiao Tong University that the revenue will surpass 5 billion yuan in 2020.

In December 2022, miHoYo was included in the list jointly announced by Guangming Daily and Economic Daily for the 14th time. The 14th China Top 30 Cultural Enterprises. In the introduction, it was mentioned that miHoYo’s revenue in 2021 will exceed 20 billion RMB. We can also see that if the statement of 26 billion to 30 billion yuan represents a positive revenue growth compared to the same period last year. This is related to economic fluctuations in 2022 and the growth of global gaming revenue.

After getting big revenue, miHoYo invests in AI, film and other fields. According to the data of expert Jiuqian Zhongtai cited in the article, miHoYo will spend tens of millions of yuan on the cloud by 2021. At the same time, there are plans to set up an AI research group on its own.

Genshin Impact received the 2022 game award.

In particular, Genshin Impact has grossed more than 2 billion USD in revenue on its first anniversary, ranking third in the list of the most recharged games globally. This makes “big guys” like Tencent extremely worried. Tencent quickly released the mobile game Noah’s Heart (launched on April 13, 2022), the open world game Huyen Trung Ky, and the game Alchemy Stars (launched overseas in June 2018. 2021).

Currently, miHoYo’s budget allocation ratio is 30-40% for games, 20-30% for big movie IPs, 10-20% for advertising and 5%-10% for other investment activities. .Genshin Impact with great success is the main motivation for the Chinese game company to invest heavily in games and anime in the future. miHoYo intends to create a large movie IP, possibly an animated series. We don’t know what miHoYo’s budget for 2023 is yet, but the IP budget for the movie is equivalent to half of the R&D and operation of the game, especially miHoYo has also prepared for the big movie mainly to promote. promote the brand without regard to profit or loss.