HoYoverse Pivots to AI, Aiming Beyond Gaming Success

In a strategic expansion that could reshape its future, HoYoverse, the creator of global gaming phenomenon “Genshin Impact,” is making significant investments in artificial intelligence as it seeks to evolve beyond the gaming industry that propelled it to prominence.

The Shanghai-based developer, which has built a multibillion-dollar empire on the back of its free-to-play gacha games, is now setting its sights on creating a comprehensive virtual world by 2030, according to recent reports from Bloomberg.

“We’re trying to use AI to help us to create a more immersive virtual world,” said Liu Wei, co-founder of HoYoverse, in a statement to Bloomberg. This ambitious initiative is part of the company’s broader strategy to diversify its business model while leveraging the massive popularity of titles like “Genshin Impact,” which continues to generate substantial revenue five years after its launch.

The company’s expansion into AI comes at a time when its core gaming business remains extremely profitable. HoYoverse’s monetization strategy, which relies on the gacha system where players spend real money for randomized chances to obtain rare characters, has proven tremendously lucrative despite recent regulatory scrutiny.

A recent Federal Trade Commission lawsuit has forced HoYoverse to be more transparent about the actual costs associated with obtaining characters in “Genshin Impact.” As reported by MMORPG.com, the company now discloses that players might need to spend up to $400 to guarantee receiving a specific five-star character—a revelation that has prompted some players to advocate for direct character purchases instead.

Despite these challenges, HoYoverse has maintained a loyal player base across its growing portfolio of games. “Genshin Impact continues to be fun five years later because of the constant updates and new regions to explore,” one longtime player told ComicBook.com, highlighting the developer’s success in creating engaging, long-lasting content.

The company’s expansion strategy extends beyond “Genshin Impact” with titles like “Honkai: Star Rail” and the rumored “Honkai Nexus: Anima” showing promise. According to MMOBomb, HoYoverse recently announced the next update for “Honkai: Star Rail,” featuring new content that continues to build on the company’s narrative universe.

Industry analysts suggest HoYoverse’s AI investments could help address one of the gaming industry’s most persistent challenges: content creation at scale. By leveraging AI technologies, the company could potentially accelerate the development of new environments, characters, and storylines across its growing portfolio of games while reducing production costs.

The company’s 2030 goal of creating a comprehensive virtual world, as reported by Game Rant, suggests HoYoverse envisions a future that transcends traditional gaming experiences—potentially positioning the company as a competitor in the broader metaverse space dominated by tech giants like Meta and Microsoft.

As HoYoverse navigates this ambitious transition, it faces both significant opportunities and challenges. The company must balance innovation with the expectations of its existing player base while addressing growing regulatory concerns about its monetization practices.

For now, HoYoverse appears committed to its dual strategy: maintaining the success of its gaming portfolio while investing in AI technologies that could define its future beyond games. As Liu told Bloomberg, “We want to create a virtual world that can last for decades.”