Zheshang Securities Co.,Ltd. has released a research note stating that AI is driving interactive film-games through a production shift from live-action shooting to AI-native development, with AI upgrading from a cost-reduction tool to the core of content and gameplay.
Four signals are gradually materializing: category demand validation (the "Shengshi Tianxia" series surpassed 5 million units in all-channel sales), large-scale commercial validation of AI-native products (the EA version of "Bu Wen Fanchen" is expected to generate total revenue of 7 million to 8 million yuan in its first three weeks on sale), regulatory compliance taking effect (interactive dramas included in the filing system for the first time), and platforms entering en masse alongside the emergence of AI platform tools (such as Tencent TDream). The industry is in a period of rapid expansion.
The brokerage recommends positioning along three lines in the interactive film-game industry chain, namely platform, content, and IP, with priority given to targets that already have products or platforms in place. The main views of Zheshang Securities Co.,Ltd. are as follows.
Market perception
The market generally believes AI is still at an early stage in the gaming industry: AI is seen more as a tool for cost reduction and efficiency gains in art outsourcing and testing, and there is a lack of unified, comparable breakdowns for its revenue and profit contribution, making it difficult to deliver results in the short term. Interactive film-games are regarded as a niche category, where hits are considered accidental ("Wan Dan! 2" failed to replicate the success of the first installment), and the market underestimates AI's impact on the production methods and costs of the interactive film-game category.
Changes in views
The brokerage previously believed that 26H1 earnings could not endorse AI revenue conversion, and that games were leaning more toward a non-AI narrative, with share prices not reflecting AI logic. With the rapid expansion of the interactive film-game market and the密集 launch of AI-native products, the brokerage believes AI is pushing interactive film-games from live-action shooting toward AI-native development, and that changes in cost structure and rising profit margins will be the first to materialize.
The brokerage's view
The brokerage believes the market underestimates the significance of AI to the gaming industry. First, the cost structure is undergoing dramatic change: AI pipelines have compressed the production cost of two hours of interactive film-game content from 5 million to 10 million yuan down to about 100,000 yuan, with costs shifting from fixed to variable based on usage, and value migrating to model and platform providers. Second, the interaction format is undergoing a qualitative change: moving from fixed options with limited branches to AI-NPC long-term memory, dynamic branching, and real-time generation, with AI transforming from a cost-reduction option into the core of content and gameplay. Third, on the demand side: emotional value needs are surpassing competitive thrill, platforms are competing for user time and creator supply in interactive content, and interactive film-games represent the heaviest content form with the highest average spending per user.
Driving factors
First, the launch of specialized technology platforms: Tencent TDream's one-stop creation platform is in beta testing, ByteDance's Seedance 2.5 and Google's Genie 3 world model (720p/24fps real-time interaction) are advancing. Second, large-scale commercial validation: the AI-native product "Bu Wen Fanchen" launched on Steam EA on September 23, 2026, with the EA version estimated to have sold about 292,000 copies in three weeks, and total revenue in the first three weeks on sale expected to reach 7 million to 8 million yuan, completing its first large-scale commercial validation while not yet crossing the hit threshold. Third, AI-native products are entering a period of dense launches: Decai Co., Ltd.'s first AI-native interactive film-game "File Zero: Arrival" launches in September 2026, and ByteDance's Zhaoxi Guangnian has released a PV for "Bu Wen Fanchen" (large-model-driven NPC free communication and long-term memory). Fourth, platform-side entry points: Tencent's comic drama platform Huolong Manju has launched an interactive mini-game channel called "Wan Yi Wan," and Douyin's Interactive Space Plaza, among others.
Key focuses
First, content production (with AI-native product reserves): Baotong Technology (self-developed AI engine, watch for new interactive film-game product launches), Yongji Co., Ltd. (comprehensive AIGC content transformation, which the brokerage believes can cut into the ultra-light mini-game market), and Decai Co., Ltd. (first AI-native interactive film-game "File Zero: Arrival"). Second, content production (with production capability): Mango Excellent Media (interactive film-game "Forensic Investigation Team" already on Steam), Perfect World (Zhengqi Manman series), Shanghai Film ("Die Ying Cheng Shuang"), China Ruyi, NetEase (Quantic Dream), Giant Network, Chinese Online, Zhangyue Technology, Ciwen Media, and Huanrui Century. Third, IP and equity participation: China Literature, Baina Qiancheng, and Huace Film & TV. Fourth, models/platforms: Tencent Holdings (TDream interactive film-game creation platform). Fifth, tools: Century Huatong, G-bits, 37 Interactive Entertainment, and Kingnet Network. Sixth, primary-market investment in AI games (VAST, etc.): Perfect World, 37 Interactive Entertainment, Giant Network, BlueFocus, and others.
Risk warnings: changes in game approval and regulatory policies; new product launch performance falling short of expectations; AI input-output efficiency lower than expected; rising computing power costs; copyright and compliance risks of generated content; platform policy risks; and acceptance risks of AI-native replacing live-action shooting.
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