New Revenue Heights for MiHoYo: More Profitable Than Major Game Companies in 2022

Recent financial reports indicate MiHoYo, the developers of popular game title Genshin Impact, is now more profitable than major players such as EA, Activision Blizzard, and even Embracer Group.

According to a translated article in Chinese media outlet Guangming Daily through Game World Observer, MiHoYo recorded an estimated $3.83 billion in revenue in 2022, with net profit of $2.26 billion. While other companies like TakeTwo ($5.35bn), Activision Blizzard ($7.52bn) and EA ($7.42bn) had higher revenues, none quite matched up to the Chinese developer in terms of profit.

MiHoYo still has yet to surpass Tencent, the perennial Chinese heavyweight, but had surpassed NetEase in terms of revenue back in May. The comparison provides insight to just how massive the Chinese market is and how it can measure up to even the largest game makers in the US and abroad, especially in terms of raw profit.

China’s Astronomical Market Share

If true, this gives a glimpse of how massive the Chinese market is expected to become, forecasted to reach $57 billion by 2027. This resilience and growth is especially important in the wake of pandemic restrictions, legislative crackdowns, and licensing freezes that have significantly impacted China’s game market.

Many game makers seeking outside investment now find themselves tempted by prosperous Chinese companies such as MiHoYo. In addition, with the developer aiming to compete with Tencent, it could potentially follow the path of investing in Europe and other markets in the future.

It should be noted that in the near future, MiHoYo may potentially be better known as the developers of their latest title Honkai: Star Rail, rather than just as the developers of Genshin Impact. While revenue for the latter title was lower than previous years, their new game is on its way to becoming the face of MiHoYo.