An early investor in China's first global gaming hit shares what's next after it sells millions in a week.

• Beijing's gaming crackdown has been lifted, and China's first top-tier video game has set new world records, boosting the industry's global aspirations.
• Mythical Game: Wukong, an action game set in Chinese mythology, surpassed 10 million units sold just three days after its launch on Aug. 20.
• In an exclusive interview with CNBC, Dino Ying, chairman of Hero Games, discussed the company's role as a co-publisher and early investor in Game Science, the developer of the game.

Beijing's gaming crackdown a few years ago has been surpassed by China's first successful top-tier video game, which has set new world records and boosted the industry's global aspirations.

The action game Wukong, set in mythological China, sold over 10 million units in just three days after its launch on Aug. 20. Even ten days later, it remained the second highest-grossing title in the U.S. and the number one game worldwide on the Steam platform, where it costs around $60 or more.

According to Dino Ying, chairman of Hero Games, who co-published Black Myth: Wukong and was an early investor in its developer Game Science, the next triple-A game is likely very close because the success of Black Myth: Wukong has demonstrated that a China-made AAA game can achieve high global sales.

Ying stated that he was aware of at least one game being developed, which his partner at Hero Games had invested in. However, he did not disclose a specific timeline.

Ying stated that sales of Black Myth: Wukong have increased by "much more" than the 10 million unit figure, but have not yet doubled.

From the beginning, the company's future game releases will have a global strategy, and foreign AAA game developers are expected to recognize the size of China's market and adjust their features to appeal to Chinese players.

Games with high graphics quality and significant marketing are typically referred to as AAA titles, and companies such as EA and Ubisoft are known for producing them.

"Ivan Su, senior equity analyst at Morningstar, stated that China is a large country with 1 million concurrent players and 600 million gamers."

Su stated that the reason China hasn't previously developed its own AAA game, which are typically played on computers and consoles, is due to the years-long production time. Instead, he suggested that it is more cost-effective to create mobile games.

Apple's Tim Cook visited Hero Games

In 2017, CEO Tim Cook visited Game Science after Hero Games invested in the company and was so impressed by the first game, Art of War: Red Tides, that he gave it the front page of the iOS App store in 178 countries, according to Ying.

But that wasn't a commercial success.

In August 2020, the developer approached Ying and his team at Hero Games, who had already invested 60 million yuan (about $8.5 million today) in two failed projects from Game Science, about Black Myth: Wukong.

Ying remarked that they were fortunate not to have given up on Game Science before it became successful, as it was Daniel Wu, now CEO of Hero Games, who had first discovered the startup.

"When you see talent that has been underappreciated, you need to be confident that it may not have found the right direction. So, you just need to help it find its way."

'Best game that I have seen'

Ying was shown the promotional video for Black Myth: Wukong two days before its release by Game Science. The company requested at least 100 million yuan from Ying's team, otherwise, they planned to ask a major Chinese video streaming and game platform.

Ying stated that he informed his team after watching the video that he didn't want to miss the opportunity because it was the best game he had ever seen.

Ying stated that the game was an AAA title, and due to the standard procedure of a large corporation, it would not have been approved.

Game Science initially received a 20% stake from Hero Games as an investment.

In the past two years, Beijing has begun to approve games, following a suspension of new titles and restrictions on the number of hours minors could play in 2021.

Ying stated that no changes were required to the game for it to obtain China's government approval in February, as it was approved for Black Myth: Wukong.

"Ying stated that in the past two years, the regulation has become more respectful towards the game industry and has positively impacted its growth, despite there being a misunderstanding one or two years ago."

Massive market potential

According to Ashley Dudarenok, founder of China digital consultancy ChoZan, domestic game sales in China reached 147.27 billion yuan in the first half of this year, based on industry figures.

But console game revenue was just 0.5% of that, she said.

After the release of Black Myth: Wukong, many people in China purchased PlayStations or upgraded their graphics cards, similar to how the Nintendo Switch was first bought due to Zelda.

In 2023, the global market saw a significant increase in overseas sales of China-developed games, reaching $16.4 billion from $11.6 billion in 2019.

"Games developed in China frequently feature culturally rich elements that increasingly attract a global audience, differentiating them from games originating from other regions."

Ying believes that China has at least five to 10 ancient stories that can be transformed into games.

""If I create something new, I can't guarantee its popularity. However, something that has endured for 1,000 years is sure to be well-liked. We don't know what made it last so long, but we must honor the original artisans," Ying said."

The ancient temples in China were scanned and replicated by Game Science, which sent teams and equipment to enhance the game's immersive feel.

Indie Chinese games

In the specialized market of indie games, Chinese businesses are gaining prominence.

Cotton Game, a Shanghai-based indie game developer with a staff of 70, won the 2024 award for best development team from Game Connection, a French-supported organization, and ChinaJoy, which hosts a major annual game conference in China.

The CEO of the company, Cotton Guo, stated in Mandarin, "Our ability to use games as a platform to share art, philosophy, and thoughtful content depends on our capabilities."

The hand-drawn game, Cotton Game's Sunset Hills, won both "Game of the Year" and "Best Indie Game" awards after being launched on Steam on Aug. 21, following a successful Kickstarter campaign that raised $13,000.

The game features an anthropomorphic dog exploring a Europe-like village, with nature and music sounds accompanying the journey. Puzzles are also included for players to solve.

"The fast pace of life in society today has left many people feeling tired. As the manager of Sunset Games, Robin Luo aimed to create a refreshing gaming experience with his game's main character based on his own dog."