Snail Inc (NASDAQ:SNAL) earlier this week outlined its long-term strategy for growth, with chief executive officer Hai Shi highlighting plans to expand profitability through internally developed game releases while positioning the company to compete in the emerging AI-driven gaming landscape.
Speaking with Proactive, Shi reflected on Snail's evolution since its founding in 2000, noting that the company was among China's early internet-era gaming businesses and initially focused on developing 3D games.
Shi said Snail's ambitions from the outset were centred on building virtual worlds and creating proprietary gaming experiences. Over the years, the company expanded into web-based games, MMOs, mobile gaming and international markets, including the United States.
The CEO also discussed Snail's acquisition strategy, which included investments in development studios such as Studio Wildcard, whose ARK franchise became one of the company's most successful assets. While acknowledging that not every acquisition delivered the desired outcome, Shi said the experience helped shape the company's current operating model.
According to Shi, management has increasingly shifted its attention toward controlling the full lifecycle of game development and publishing rather than relying primarily on third-party publishing opportunities.
A key theme of the discussion was the importance of developing strong intellectual property. Shi argued that gaming companies seeking long-term success must build distinctive core franchises capable of generating broad audience engagement and sustainable growth.
He also highlighted broader industry challenges, including rising development costs, increasing player expectations and the difficulties independent studios face in securing sufficient resources. Mobile gaming companies continue to encounter significant marketing expenses, while MMO developers face growing pressure to deliver larger amounts of content and ongoing live-service support.
Looking ahead, Shi said Snail's principal objective is to release internally developed products that could materially increase profitability. He stated that the company wants "to be able to double or triple our profits once products are released."
Shi further noted that much of the development spending for these projects has already been absorbed through operating costs, meaning future revenue could have a meaningful impact on earnings performance.
Another potential catalyst is the company's AI strategy. Shi said Snail intends to leverage artificial intelligence technologies to improve game development processes and create more engaging products for players.
Investors may also be watching for additional updates expected in August, when management plans to provide further details regarding future products and strategic initiatives.