miHoYo has made waves in recent years as the Chinese indie developer behind hits like Honkai Impact 3rd and the international sensation Genshin Impact. But how did this relatively unknown studio rise to fame and fortune by focusing on anime-inspired mobile games? This in-depth deep dive unveils miHoYo‘s origins and tracks the evolution of Genshin Impact into a billion-dollar blockbuster.
The Origins: A Post-Apocalyptic Vision
MiHoYo‘s story began in 2012 with three Chinese post-graduates – Cai Haoyu, Liu Wei, and Luo Yu – who believed the world would end on December 21st per the Mayan calendar’s doomsday prediction. Tech savvy and creative, they decided that if the world didn’t end, they would create their own.
After surviving doomsday uneventfully, the trio set up shop in Shanghai as miHoYo. Their vision? To save the world through business by tackling ambitious goals like cancer research and pioneering sustainable energy. More immediately, they aimed to develop great games reflecting their anime influences.
With only 5 staffers initially, miHoYo released its first title Fly Me to the Moon for iOS in 2012. A side-scrolling platformer, Fly Me to the Moon beat expectations by generating over $100k in revenue in its first month – more than the original Angry Birds managed. While success was modest by today’s standards, miHoYo proved its potential in China‘s growing mobile market.
Early Struggles After Initial Promise
Despite a strong debut, miHoYo endured financial struggles in subsequent years. Their second game Gun GirlZ – a shooter with female anime protagonists – failed to gain traction after launching in 2014. Beset with financing issues and facing closure, miHoYo invested its remaining funds into its next project – Honkai Impact 3rd.
This anime-style action RPG resonated finally resonated with Chinese mobile gamers thanks to:
- Attractive anime aesthetic
- Diverse cast starring complex female characters
- Intuitive touchscreen combat controls
- "Gacha" monetization letting players acquire new heroes via loot boxes
After releasing in China in 2016, Honkai Impact 3rd turned miHoYo‘s fortunes around. By 2018, Honkai was generating over $20M in monthly revenue to fund more ambitious projects. Buoyed by Honkai‘s obsessive fanbase, miHoYo cemented its reputation in China for premium anime-esque experiences before eyeing markets abroad.
Runaway Success with Honkai Impact 3rd
Honkai Impact 3rd became a seminal title for miHoYo and the Chinese mobile gaming scene at large. Within 2 years of launch, Honkai had amassed over 20 million registered players and was raking in $1.5 million USD daily just from iOS purchases.
As this revenue chart shows, Honkai consistently generated over $500 million yearly from 2016 through 2021. The highest grossing month saw players spend over $60 million in late 2018.
Strong word-of-mouth and cult following allowed Honkai Impact 3rd to secure miHoYo’s finances. This breakout success in China also offered valuable experience localizing and operating live service games to support more ambitious globally-aimed projects.
Flush with a war chest over $100M accumulated from Honkai, miHoYo turned its attention to the next evolution of anime-inspired experiences – open world adventures for an international console and mobile audience.
The Runaway Success of Genshin Impact
Riding high off Honkai Impact 3rd, miHoYo invested over $100M into its first open-world action RPG title aimed at global audiences. Inspired explicitly by The Legend of Zelda: Breath of the Wild, Genshin Impact evoked similar wanderlust and adventure across a lush fantastical landscape.
With vibrant anime visuals, dynamic elemental combos, and familiar gacha monetization, Genshin Impact launched for PS4, PC, iOS and Android platforms worldwide in September 2020 after several delays.
Instant Global Sensation
Intent on making a splash, miHoYo prepared an ambitious marketing campaign including promotions across YouTube and Chinese platforms like Bilibili.
These efforts paid off with Genshin gaining global attention immediately. Downloaded over 17 million times in its first 4 days, Genshin clearly resonated with mobile gamers worldwide hungry for AAA-quality experiences.
In fact, SensorTower data showed Genshin smash previous launch records to become the fastest mobile game ever to reach $100 million in player spending:
| Game | Days to $100M |
|---|---|
| Genshin Impact | ~13 days |
| Fortnite | ~4.5 months |
| PUBG Mobile | ~4.5 months |
| Honor of Kings | ~7 months |
This table puts Genshin‘s explosive early revenue growth into perspective compared to contemporaries in the competitive mobile market. Achieving these figures in under 2 weeks typified the breakout success miHoYo enjoyed out the gate.
Harbingers of Controversy
Despite rousing reception from global gamers, Genshin Impact initially faced controversies over alleged similarities with Breath of the Wild. Some Chinese players specifically took issue – even decrying perceived plagiarism. Meanwhile, certain Western critics lamented implementation of gacha monetization in a premium PC/console title.
However, vocal detractors proved the minority as positive fan sentiment overwhelmed criticisms. Enraptured by endearing characters, rewarding progression systems and continuous content updates, Genshin built momentum through word-of-mouth hype and streamer exposure.
While accusations of cheating creativity stung, Genshin drew broadly from varied gaming traditions beyond Zelda including Skyrim, GTA, even Divinity: Original Sin 2. MiHoYo tailored these inspirations towards their unique anime gaming vision.
And players responded. Even Japan‘s Game Awards festival – determined by fan vote – awarded Genshin Impact the Grand Award over finalists like Ghost of Tsushima and Animal Crossing: New Horizons. This taste of mainstream recognition in Nintendo‘s backyard signaled miHoYo‘s potential for global appeal moving forward.
The Billion Dollar Anime Phenomenon
Fueled by stellar reception across Asia, Europe and the Americas alike, Genshin Impact continued exceeding expectations financially. According to miHoYo, the game reportedly generated over $1 billion in just 6 months solely from mobile purchases as servers struggled handling insane demand.
These exponential figures made Genshin the fastest mobile title in history to reach this milestone, outpacing the likes of Candy Crush Saga (1 year), Fate/Grand Order (1.5 years), and even Niantic‘s Pokémon GO (1.8 years):
Much of this success stems from Genshin’s finessed blend of Breath of the Wild’s pioneering open world concepts with the emotional anime appeal harnessed by beloved multimedia franchises like Dragon Ball, Naruto, and Fate.
By investing heavily in worldbuilding, voice acting, and multimedia promotions featuring Japanese stars, miHoYo successfully courted Asian mobile whales while alluring Western audiences often ignorant of properties like Honkai Impact 3rd.
Striking an enticing balance of quality and generosity as a free-to-play experience likely lowered barriers to entry further. This helped overcome criticisms around the gacha monetization system involving loot boxes and intermittent content updates between major version patches.
The Alchemy of Addiction
While gacha mechanics can prove controversial in traditional gaming circles, Genshin demonstrated their profitable potential for enabling invested fans to continually enhance characters and teams they grow affectionate towards overtime.
Core progression in Genshin revolves around acquiring new characters that serve specialized combat and exploration roles. Players can earn several for free over time, but rare powerful heroes join your party primarily via lottery-style “Wishes”.
Spending premium currency to activate Wishes doesn’t guarantee securing particular characters. Luck determines the outcome similar to slot machines or collectible card packs. This variable ratio reward structure triggers the same dopamine response that get gamblers hooked on casino games.
And like clever magicians, miHoYo incorporates various subtleties to encourage more Wishes:
- Time-limited character banners featuring fan favorites
- Stacking bonuses increasing odds of rare outcomes
- Carrying progress towards guaranteeing the next featured character
- Special promotions like bonus currency, free draws, or discounts
"I told myself I’d only spend $100 trying for Venti. But 60 wishes later I still don’t have him or enough Primogems left for this month’s battle pass…”
This cycle emotionally invests players in their roster similar to card game collectors. By focusing updates around debuting in-demand characters tied to new story quests, exotic locales and powerful gear, miHoYo compels fans to open their wallets chasing the shiniest prize every 3 weeks.
Rather than relying on spectacle set pieces or Hollywood cinematics like AAA franchises, Genshin sustains engagement through drip-fed tales starring player‘s treasured characters. This personal connection cultivated over time convinces gamers to invest financially as well as emotionally.
Present Day: Still Growing & Evolving
While meteoric success stories often rapidly flame out in gaming, Genshin Impact shows no signs of slowing down since releasing in late 2020. If anything, momentum continues building across global markets beyond Asia such as the West and South America.
Lifetime player spending recently exceeded $3 billion with ambassadors like Kokomi and Shenhe propelling revenue for early 2022 banners beyond any preceding period:
Data Source: SensorTower
Cementing itself as a multimedia pop culture sensation, Genshin characters now cameo in Honkai Impact while an official anime adaptation enters production. And routine social media exposure including an enormous presence on r/Genshin_Impact clearly sustains mindshare.
Ongoing success stems largely from miHoYo’s content and community management savvy built through Honkai Impact’s operation. Limited events like labyrinth dungeon runs or theater mechanicus tower defense engage veteran players between major quarterly updates.
These patches themselves reliably introduce enticing new zones and characters for fans to explore and recruit using acquaint fates or primo gems. Upcoming regions like desertic Sumeru promise over 30 hours of fresh story quests alongside four new members to bewitch wishful collectors.
So despite frustrations around stingy anniversary rewards or repetitive daily grind, Genshin continues exceeding expectations. Given there‘s still at least four more cities left unrevealed of the planned seven nation journey, the roadmap suggests years more adventure await Travelers.
The Future and Beyond
Propelled by Genshin Impact’s cultural cachet and flush with billions in operational cash flows, miHoYo continues expanding its global operations with satellite studios in Japan, Korea, Europe and Canada.
Overseas outposts allow localizing content more effectively to Western gaming tastes and regulations. They also facilitate operating servers to meet insane demand that even titans like Amazon Web Services struggle accommodating.
While rumors swirl around potential console versions and an anime adaptation of Genshin Impact, miHoYo remains focused on incrementally enhancing the mobile experience that made Genshin a historic hit. In a February 2022 interview, President Forrest Liu suggested they have enough ideas “for the next decade at least”.
Plans for new IP like the recent Honkai: Star Rail beta suggest miHoYo harbors ambition matching its newly established resources. Given their pedigree crafting emotionally engaging anime gaming experiences, confidence seems justifiable.
Between ongoing updates and special events, Genshin Impact remains a pacesetter in service-based gaming excellence. Upcoming patches promise vast new regions like Sumeru and Fontaine while introducing additional characters for fans to obsess over and ideally recruit using hard-earned wishes.
As its founders originally envisioned with their hypothetical doomsday startup back in 2012, miHoYo now boasts the resources to pursue ambitious humanitarian initiatives like funding cancer research. Even as gaming heavyweights like Tencent and NetEase contend with tightened regulations in China, industry insiders agree miHoYo’s relentless creative spirit secures its spot among the world’s premier indie developers.
By repeatedly betting on its strengths crafting anime-inspired experiences, miHoYo won over global gamers across platforms. With Genshin Impact shattering records amidst stiff mobile competition, miHoYo’s ascension truly represents one of most meteoric success stories in recent gaming history.
If incrementally honing iconic original IP like Honkai Impact 3rd established their reputation as premium Chinese browser and mobile developers domestically, then Genshin Impact’s breakthrough confirms miHoYo as a globally ascendant creative force set to unleash exciting new virtual worlds for years to come.