A research report from CICC notes that Alphabet has adjusted its Google Play service fee structure. The new rules will further open up third-party payment channels and reduce the commission rate, with the changes set to take effect gradually starting June 30, 2026, in regions including the United States. In the domestic market, Apple's App Store has reached an agreement with Tencent to handle payments for WeChat Mini Programs with a 15% commission. WeChat Mini Games have also adjusted their incentive policies, adding a 5% cash incentive for new games on Android and providing a 15% cash incentive on Apple devices (developers can receive up to 85% of Apple's in-app purchase revenue). The lower commission rates under the new rules are expected to boost short-term profits for game publishers expanding overseas, while the medium to long-term focus should be on game content quality and sustained operational value. CICC's main points are as follows:
The new rules effectively lower the actual commission rate. Key changes include: 1) Further opening of third-party payments: Developers can choose to use their own billing systems alongside Google Play Billing (which charges a 5% payment processing fee) within apps, or direct users to make payments outside the application. The company had already opened third-party payments in the U.S. in October 2025. 2) Commission reductions: The commission rate for new user installations will drop from 30% to 20%. For developers in programs like GamesLevel Up, commission rates for new and existing user installations will decrease to 15% and 20%, respectively. Subscription plan commissions will be reduced to 10%. 3) Effective date: The new rules will take effect in the United States, United Kingdom, and European Economic Area by June 30, 2026, and will be rolled out globally thereafter.
Attention is drawn to the trend of opening third-party payment channels and reducing platform commissions. In overseas markets, Apple's App Store has already begun opening third-party payment channels in Europe, the United States, Japan, and other regions. Domestically, Apple's App Store has agreed with Tencent to process payments for WeChat Mini Programs with a 15% commission. WeChat Mini Games have also updated incentive policies, introducing a 5% cash incentive for new games on Android and a 15% incentive on Apple (allowing developers to retain up to 85% of in-app purchase revenue). It is advisable to monitor commission optimization trends in overseas iOS markets, as well as domestic iOS, Android, and mini-game channels.
In the short term, lower commission rates under the new rules are expected to gradually enhance profitability for games expanding internationally. Over the medium to long term, the reduction in commission rates reflects a shift in pricing power within the gaming industry from distribution channels to content creators. Focus should be placed on the value of high-quality game content and the sustained contribution to profits and cash flow from evergreen games over extended lifecycles. For A-shares, CICC recommends Century Huatong (002602.SZ), 37 Interactive Entertainment (002555.SZ), Perfect World (002624.SZ), Giant Network (002558.SZ), G-bits (603444.SH), and Kingnet Network (002517.SZ). For Hong Kong and US markets, it recommends NetEase (09999) and XD (02400).
Risk factors include fluctuations in industry policies, intensified competition, rising user acquisition costs, and games underperforming expectations.
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