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Miha game Makes Big Money

  A game company has produced 4 billionaires.
  In China’s “New Fortune 500 Rich List” in 2022, Shanghai company Mihayou occupies 4 seats.
  Among them, the three founders Cai Haoyu, Liu Wei and Luo Yuhao ranked 73rd, 145th and 157th with net worths of 55.35 billion yuan, 30.51 billion yuan and 28.89 billion yuan respectively. Cai Haoyu has thus become the new richest man in Jinan.
  Another investor, Song Tao, made a lot of money from his early investment in Mihayou, ranking 231st with a net worth of 20.2 billion yuan.
  Mihayou is on the list for the first time. The three founders who are less than 35 years old have more wealth than many predecessors.
  How rich is this company? Outsiders estimate that Mihayou’s revenue in 2021 will be 32.854 billion yuan, and its net profit will be about 18.54 billion yuan, which is close to NetEase’s overall net profit. However, Mihayou denied it.
  It took 11 years for the three young tycoons to start from scratch and become famous on the list.
Billions of running water

  Mihayou’s wealth code comes from the game “Yuan Shen”, which will be released in 2020. This product has been launched for half a year, and Apple’s mobile revenue alone has exceeded 3 billion US dollars, excluding Android, PC platforms and host platforms.
  Up to now, the global circulation of “Genshin Impact” has surpassed that of “Honor of Kings”, making it the most popular phenomenon-level game in recent years.
  Some industry insiders once estimated that “Yuan Shen” will have a turnover of about 30 billion yuan in 2021 and a profit of 15 billion yuan. Only the scale of a single game can rank among the top 500 companies in China.
  Behind the explosion is the persistence of the three technical houses of Jiaotong University.
  Among the three founders of Mihayou, Chairman Cai Haoyu and Deputy General Manager Luo Yuhao are responsible for the behind-the-scenes development work, while President Liu Wei is more external. They used to be classmates of the Department of Computer Science of Jiaotong University, and they are all two-dimensional enthusiasts.
  In 2009, the three tried to develop web games by themselves, turning their love for the second dimension into products. It is said that their graduation project at Jiaotong University at that time was a stand-alone game DEMO, but the relatively older tutors were not optimistic about the second dimension, and the ratings were not high. Start a business after graduation without capital support.
  At that time, the two-dimensional game was far less attractive than an artificial intelligence product. The team’s start-up capital came from an interest-free loan of 100,000 yuan from the Shanghai Science and Technology Innovation Center. The office is only 50 square meters, and the free use period is half a year.
  In September 2011, Mihayou’s first independently produced game “Fly Me 2 the Moon” was launched. At the end of the same year, Mihayou finally received an angel investment of 1 million yuan. The investor was Hangzhou Skye Network Technology, holding 15% of the shares, and the actual controller was Song Tao.
  Skye Networks originally made games on the Symbian system. After the rise of iOS and Android systems, the company had to find new opportunities.
  Industry insider Wang Yu told 21CBR that compared to Lilith’s Tencent background, the three founders of Mihayou are not endorsed by major companies, and the first-line capital is not optimistic. Skye Network is “picking up leaks”.
  After obtaining financing, Mihayou launched “Bengkai Academy 1” the following year, and the response to the single-player game was mediocre, without causing too much splash.
  Liu Wei once said that the team was very confused at that time and could not see the direction of the industry. The three founders have a monthly salary of 4,000 yuan and hold multiple positions. He himself has tried all kinds of work except for the original art painting. He devoted himself to a year of game customer service, and in the process, learned about players’ preferences.
  In 2014, Mihayou launched “Honkai 2”, which upgraded the single-player game to an online game. The gameplay was changed, and it was a small success, with a revenue of more than 100 million yuan. In 2016, Mihayou launched “Honkai 3″, and the turnover reached 2.3 billion yuan in the year of its launch, making it famous.
  ””Honkai 1” is for food and clothing, “Honkai 2” is to make a little money, “Honkai 3″ is to be the first in the vertical category.” Wang Yu said that around 2015, the industry began to shift from web games to mobile games ” “Renovation”, most companies choose to directly change a terminal game and make a quick buck. Mihayou has redesigned a new product from the beginning to the end, with a unique style and won a good reputation in the blank track.
  ”Honkai 3″ maintained high growth after its launch, and was a milestone product of Mihayou until the grand slam “Yuan Shen” was born.
Budget out of control

  After the “Honkai 3” hit, the team has been thinking about what to do with the next product.
  Liu Wei once said that Mihayou has a simple R&D concept: something new, something exciting, and something out of imagination. “What kind of products do we make that make us feel exciting and out of imagination?”
  During that time, they played a lot of open-world games on consoles and wanted to bring such games to mobile phones. I wanted to play and I was willing to do it, so the team had the idea of ​​making “Yuan Shen”.
  I have never done this kind of game before, and Mihayou has no idea about cost and budget. The development process of the entire project went from “painful” to “out of control”, Liu Wei said: “It fell into a quagmire and completely exceeded expectations.”
  According to the prospectus submitted by Mihayou, at the end of 2014, Mihayou developed “Honkai 2”, The team has 41 people; in 2016, when “Honkai 3” was launched, the number increased to 235; in 2017, when the Yuanshen project was established, the number of people in the company reached 308.
  It took 3 years for “Yuan Shen” to go live from project initiation to launch. With the advancement of the project, the investment gradually “out of control”. Mihayou spent a lot of money and manpower was full.
  At the end of 2019, the number of people in a single project of “Yuan Shen” has exceeded 400. In July 2021, it is said that the development team of “Yuan Shen” has exceeded 1,000 people. Even if the per capita annual salary of 400,000 yuan in the prospectus is calculated, the labor cost of the project will cost at least 400 million yuan a year.
  Earlier, some media reported that the development of “Genshin Impact” cost 100 million US dollars. Cai Haoyu publicly admitted that he invested a lot of money: “Yuan Shen will cost 200 million US dollars a year after its launch, and the development cost in the past three years has been higher.”
  During the development of “Yuan Shen”, the reputation of “Honkai 3” declined for a time. The energy is too much to take care of, and secondly, it is necessary to accelerate the absorption of funds, subsidize new projects, and experience worsening.
  The investment in “Yuan Shen”, which exceeded the standard, did not disappoint Mihayou.
  In the Top 30 list of mobile game manufacturers by revenue released by Sensor Tower data, in December 2019, Mihayou ranked 26th. One month after the release of “Yuan Shen”, Mihayou’s ranking jumped to the second place.
  As of April this year, Mihayou’s global revenue is firmly in the top three in China, second only to Tencent and NetEase. However, Tencent has 9 games in the Top 20, NetEase has 6, and Mihayou only relies on 1 game.
  ”Genshin Impact” has various sources of income. In addition to the Chinese market, Japan and the United States are ranked second and third in terms of revenue. Cai Haoyu said that the performance of overseas markets exceeded the company’s expectations.
Mihayou founder “New Fortune 500 Rich List” ranking

  Mihayou has been in business for 11 years and has launched 6 games, 3 of which are popular, with a very high success rate.
  ”Mihayou started from a two-dimensional game, and made increments in a blue ocean track, avoiding the track where Tencent and NetEase made efforts, and dislocated competition.” Wang Yu said that there are companies that are all in the two-dimensional game like Mihayou. , but it was too late.
  After the angel round, Mihayou submitted a listing application in 2017, which was withdrawn in 2020. Apart from that, there has been no financing in these years.
  After the launch of “Yuan Shen”, it was rumored in the market that Tencent wanted to become a shareholder, but failed to “send money”. “Tencent once was worried about missing Mihayou, because this target is cost-effective and competes with its own game business.” A person familiar with the matter said, “Now, it is difficult to bid for a company with a profit of tens of billions.
  ” According to people familiar with the matter, Mihayou also received an acquisition offer from ByteDance, and the valuation given was 1/4 of ByteDance. According to the ByteDance’s valuation of US$100 billion in 2020, Mihayou’s valuation exceeds US$25 billion.
  Cai Haoyu still refused.
  It is difficult for the company to acquire shares, and it is also difficult for employees to be poached.
  Mihayou is generous in salary. Six years ago, it dared to pay twice the salary to poach people. Now, in order to snatch people, many positions even offer salaries higher than those of large factories. “Some companies want to dig, but the salary may not be able to catch up.” Wang Yu said .
  The latest information shows that Mihayou has more than 3,500 employees worldwide.
  Wang Yu said that Mihayou’s team is not small, and there will also be various “big company diseases” internally. To the surprise of the outside world, the founder of the company is young and pragmatic, and has been fighting on the front line so far.
  There is a saying in Mihayou: “In the company, you have to choose the project where Cai Haoyu is in or the project where Cai Haoyu is not.” Everyone can set up projects, but the resources they get are uneven. Cai Haoyu is an important decision-maker. He is good at gathering the company’s human, financial and time resources to specialize in a hit.
  ”The research and development direction is forward-looking, and the cost is n times that of others. It is difficult for latecomers to catch up.” Wang Yu said that each product of Mihayou will be produced for about 3 years, and continue to polish after it goes online. Through self-developed and spontaneous system.
  Compared to when he started his business in the early years, Mihayou is not bad at money now, and there are still many things he wants to accomplish. In Wang Yu’s view, in order to broaden the business boundaries, Mihayou has made some investment moves.
  Last year alone, Mihayou made 5 shots, including spending 600 million yuan to invest in Soul, which focuses on the “social metaverse”, 400 million to participate in the B-round financing of video cloud service provider Weiling Times, and the establishment of an encephalopathy center with Shanghai Ruijin Hospital. Provide funding to research brain interface technologies.
  The three founders of Mihayou, after making money from games, began to invest heavily in younger people. This trick is somewhat familiar.

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