miHoYo Skyrockets to $23 Billion Valuation: Genshin Impact and Honkai: Star Rail Drive Explosive Growth!

A recent financial report has disclosed that Genshin Impact's developer, miHoYo, now valued at $23 billion, has reached a significant milestone. In February 2022, miHoYo expanded its operations globally by establishing its subsidiary, HoYoverse, to represent its ventures into different entertainment sectors, although it retains its original name in China.

The main revenue stream for Genshin Impact comes from its gacha system, where players can obtain characters and weapons for limited periods. The latest update, Version 4.5, introduced a new five-star Geo character, Chiori, who was featured alongside Arataki Itto in the first part of the update.

A notable post on Genshin Impact's subreddit listed the 15 largest private companies, citing their valuations from the Hurun Research Institute and reported by Game World Observer. MiHoYo has impressively risen 91 places from its previous spot to the 12th position, becoming the top-ranked private gaming company at a valuation of $23 billion. This significant valuation boost is largely due to the success of its leading games, Genshin Impact and Honkai: Star Rail. Since its launch in September 2020, Genshin Impact has gathered a substantial following.

The global appeal of Genshin Impact is largely due to its free-to-play model and availability across various platforms. Despite the potential for players to spend large sums on characters, most of the game can be completed with the characters and weapons provided at no cost. Genshin Impact keeps its community engaged with regular updates that introduce new content.

Meanwhile, Honkai: Star Rail, another title from miHoYo released just over a year ago, has shown it can surpass Genshin Impact in terms of revenue. A recent report highlighted that Honkai: Star Rail's earnings in March exceeded those of Genshin Impact, driven by the introduction of popular five-star characters like Sparkle and Acheron.

Expectations are high for a rebound in Genshin Impact's sales in April, following HoYoverse's announcement of the upcoming addition of the much-anticipated Fatui Harbinger, Arlecchino, also known as The Knave. Arlecchino, a central figure in the recent Fontaine story arc, has been rumored to join the game's character roster since her debut in a trailer last year.