In China's domestic gaming market in 2026, the anime-style mobile game segment is witnessing a tale of two extremes. According to the H1 2026 industry report from the China Audio-video and Digital Publishing Association, revenue from anime-style mobile games has declined year on year, with frequent reports of small and mid-sized studios ceasing operations. Meanwhile, top players represented by miHoYo are steadily rolling out multiple new titles, making the industry's trend of polarization increasingly pronounced.
Data shows that domestic revenue from anime-style mobile games reached RMB 13.269 billion in the first half of 2026, down 8.97% year on year, making it one of the few major gaming segments to post negative revenue growth. Industry analysts attribute the decline to multiple factors. On one hand, most established top titles in the segment have entered their mature stage, with revenue growth generally peaking and unable to continue driving overall market expansion. On the other hand, after years of market development, anime game players have increasingly high standards for art style and gameplay, making it difficult for homogenized card-collection and character-raising titles to attract user spending.
Amid the market correction, small and mid-sized studios with weaker risk resistance are the first to feel the pinch. Over the past six months, numerous small and mid-sized anime game studios have announced service shutdowns for their titles, termination of R&D projects, or team dissolution, markedly accelerating the pace of industry consolidation. For these studios, limited R&D funding and insufficient publishing resources are common pain points. They can neither compete with top publishers in terms of art and technical quality, nor secure enough traffic exposure, leading to gradual marginalization in stock competition.
While small and mid-sized players are exiting the market one after another, top publishers are choosing to double down against the headwind. As a benchmark enterprise in the anime gaming space, miHoYo has unveiled a string of new title updates recently. Its first realistic 3D action game developed with Unreal Engine 5 (UE5), Origins of the Knot, was successfully included in the September approval list for domestic online games, securing its "pass" for launch. Its other title, Petit Planet, a planet-themed life simulation game, was officially announced to enter open beta in winter 2026, with related connectivity tests having kicked off in late September.
Unlike traditional anime-style mobile games, both of miHoYo's new titles step outside the familiar card-collection and character-raising category. Origins of the Knot focuses on hardcore action gameplay and realistic art style, while Petit Planet leans toward casual simulation and management. This category expansion strategy represents an attempt by top publishers to break beyond the core anime user base and reach mainstream players. It also further raises the competitive barrier of the segment on the back of technological investment and production capacity advantages.
From an industry development perspective, the revenue decline in anime-style mobile games does not signal a shrinking segment, but a necessary process as the industry enters a high-quality development phase. The dividend era where quick "reskinned" titles could turn a profit is over, and supply-side clearance will continue to phase out outdated production capacity. Going forward, competition in anime games will focus more on quality and innovation, further widening the advantages of leading enterprises. For small and mid-sized studios, only by identifying differentiated niche segments can they survive the industry reshuffle.
*Data aggregation is sourced from Gghubs.