China’s Rise in Gaming Leaves Japan Struggling to Keep Up

Former PlayStation Executive Says Japan Struggles To Match Genshin Impact As China Races Ahead

Shuhei Yoshida, one of PlayStation’s most respected former executives, has shared an eye-opening observation about the shifting global gaming landscape after attending the large indie game expo WePlay Expo 2025 in China. His comments highlight a growing reality inside the industry as Chinese studios rapidly scale their capabilities to a level that even veteran Japanese developers find difficult to match. In discussing China’s booming development scene, Yoshida noted the incredible work speed and fluid team structures that allow studios to adapt and execute at a pace that Japan cannot currently mirror. He explained that Chinese developers move quickly, reorganize teams with ease, and push content updates at a scale the industry has rarely seen. This surge has particularly drawn attention in fields like animation and world-building, areas in which China’s output has become a reference point for global developers.

During conversations with representatives from miHoYo, the studio behind Genshin Impact, Yoshida emphasized that Japan still faces significant challenges in producing large-scale open world titles with the same speed and volume of manpower. He mentioned that replicating the development approach of miHoYo would be difficult for Japanese studios due to structural, cultural, and legal differences. This includes team size limitations and personnel hours, factors that directly affect production speed and long-term project sustainability. According to Yoshida, China’s strength lies in an environment that supports massive teams capable of long development cycles, a reality that gives many Chinese projects a notable advantage in AAA production. He added that this foundation continues to expand with each major release.

Yoshida also praised HoYoverse for announcing Varsapura, a high-end project built with Unreal Engine 5. He believes the game signals miHoYo’s intention to explore new genres beyond their signature anime style seen in Genshin Impact and Honkai Star Rail. In his view, Chinese and Korean developers may be building titles inspired by miHoYo’s formula, yet miHoYo itself seems determined to push farther ahead. Rather than settling into its success, the company appears eager to raise technical standards and widen the gap again.

In conclusion Yoshida’s insight underscores how quickly China has risen into a global powerhouse. With massive talent pools, fast development pipelines, and increasingly ambitious projects, the competition for AAA dominance is shifting. The growth of studios like miHoYo shows no sign of slowing, and their upcoming titles could push industry expectations even higher. As this momentum continues, game developers around the world may need to refine their strategies to keep pace. Readers are invited to reflect on this evolving landscape and join the conversation through the This Is Game SEA community.

THIS IS OUR SAY
The global gaming scene is entering a new era as China breaks long-standing boundaries of scale, speed, and ambition. Yoshida’s comments highlight not only a challenge for Japan but also a wake-up call for the world as studios like miHoYo push production values beyond expectations. The next generation of games will be shaped by those willing to evolve, and it is clear that the competition is heating up faster than ever.

 Reference: automaton