Goldman Sachs China Internet Games: XD Launching AI Game Creation Tool 'TapTap Create', a Step to Reshape Content Production
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Goldman Sachs published a report on XD Inc.'s January 30, 2026, launch of TapTap Create, an AI-powered game creation tool. Designed as a core AI game creation agent, TapTap Create aims to break down technical barriers, allowing users without programming or art backgrounds to transform creative concepts into playable games.
The technology features a proprietary AI-native engine supporting 3D, physics simulations, and cloud hosting, paired with an integrated toolbox and intelligent agents. Goldman Sachs views this launch as a strategic move to strengthen the TapTap platform's ecosystem, transitioning it from a traditional game distribution channel into an incubation hub for exclusive, user-generated content.
While the tool could democratize game development and significantly expand original content, monetization remains a challenge in China, as in-app purchase games require regulatory approvals. Initial monetization may rely more on advertising models.
Currently, the technology cannot fully replace the complex, multi-faceted development process required for high-quality video games, meaning engaging narratives and refined mechanics still demand human expertise. For leading publishers like Tencent and NetEase, these AI tools should primarily accelerate production efficiency rather than disrupt their core market advantages. Goldman Sachs maintains a Neutral rating on XD Inc. with a 12-month sum-of-the-parts target price of HKD 85.4.