At the end of last month, LTGAMES established a new company, Keyin Technology, in Shenzhen, holding a 45% stake.

The remaining shares are owned by Li Xinyu, who also heads LTGAMES's global short drama division.Notably, Li recently posted a job listing for a U.S.-based producer in Los Angeles.

In fact, LTGAMES began laying the groundwork for this move back in October 2023, when it established Shenzhen Yunmeng Film & Television Technology Co., injecting RMB 3 million in capital.

Less than three months later, its drama app, DramaLet, launched across multiple global markets.

So, as a newcomer from the gaming sector, how has LTGAMES fared in the increasingly crowded short drama space? And what prompted this pivot at a time when competition is already fierce?

01.DramaLet: A Fast Iteration Strategy for a Late Mover

DramaLet reflects LTGAMES's broader strategic thinking around short drama. Content-wise, the app closely follows prevailing genre trends—CEO, Tragic Romance, and Alpha—all of which resonate with female audiences.

To gain a foothold despite entering late, LTGAMES has adopted a teaser-based rapid iteration model. CTO Sheng Hui told 短剧研究僧 that this model involves distilling the essence of a series into a 3–4 minute teaser to gauge user response. If engagement metrics are strong, the company greenlights full production.

Content localization is a core priority. LTGAMES pairs Chinese and English writers for each script and partners with local production teams in North America. A supervising producer is stationed overseas to oversee content quality and ensure cultural relevance.

Unsurprisingly, North America—particularly the U.S.—is the app's primary target market. According to AppGrowing, DramaLet has experienced three major ad spend peaks since launch: in the second half of 2024 and again in February this year.

In all three waves, the U.S. and Canada consistently accounted for the largest ad share, with the U.S. alone capturing more than 20%—twice reaching 25%.

This strategic focus on the U.S. reflects the maturity of its market. While monetization of short drama globally remains in its early stages, North America shows higher user willingness to pay. This helps explain why LTGAMES entered late, yet still chose to compete in the world's most competitive market.

In terms of demographics, DramaLet primarily targets white, stay-at-home women aged 40–60. Ad targeting confirms this, with women making up over 90% of the app's ad audience. Nearly half of those are aged 35–64.

Creative assets focus heavily on emotionally charged clips from romance dramas, especially involving toxic relationships or high drama. A recent example: Mr. CEO, Ms. Samantha Only Has 3 Months Left.

02.Declining Core Titles Push Leiting Toward New Revenue Frontiers

According to the latest financial report from parent company G-bits, only its PC title 问道 posted positive YoY revenue growth in 2024, rising 3.93%. Mobile titles 问道手游 and Overmortal(Chinese Mainland) saw declines of 11.39% and 42.49%, respectively.

With its legacy titles under pressure and no new breakout hits in sight, LTGAMES finds itself in a product gap. G-bits' total annual revenue fell 11.69% to RMB 3.696 billion, a four-year low. Net income dropped 16.02% to RMB 945 million—the lowest in five years.

Looking overseas, G-bits reported a promising 83.92% YoY increase in international revenue. However, profitability remains elusive, and the company lacks a blockbuster title with lasting global appeal. AppGrowing's "Top Publishers" shows that Overmortal remains the most heavily promoted title across regional versions.

Clearly, LTGAMES needs a new hit to break through internationally—and that product might not necessarily be a game.

For one, both games and short dramas are part of the broader content economy. LTGAMES's experience in mobile game distribution gives it a transferable advantage in performance marketing and audience building.

Moreover, the pace of content consumption is accelerating. The rise of hyper-casual games and the casualization of mid-core titles reflects a shift in user behavior toward shorter, more digestible formats. Short drama, with its rapid pacing and emotional hooks, is well-suited to this trend.

Still, the short drama market faces real monetization challenges. As of June 2024, even in the relatively mature U.S. market, fewer than 10 million users had paid for short drama content, according to Sheng Hui. Despite this, competition is already intense.

Chinese studios have poured massive resources into performance marketing to dominate top-tier inventory. In Q1 alone, ShortMax led the category with more than 560,000 creatives; ReelShort followed closely with 550,000; and DramaBox placed third with nearly 450,000. By contrast, DramaLet ran fewer than 2,000—a negligible share.

Compounding the challenge, gaming studios are increasingly entering the drama space. In addition to LTGAMES, major players such as 37 Interactive Entertainment, Bingchuan Network, DH Games, and IYAGAMES have posted drama-related job openings. NetEase launched its own drama app LoveShots, and casual game specialist Newborn Town has rolled out DramaBite for global markets.

Competition is fierce—but this is the nature of content industries, where sustained success depends on fresh IP. Without compelling content, users quickly churn. That makes it difficult for any one platform to monopolize the market.

So far, DramaLet remains in its early stages. Sensor Tower data shows it drew fewer than 10,000 installs across iOS and Android in the past 30 days. But LTGAMES's recent moves—including the launch of a new company, overseas hiring, and deeper investment in production—signal a serious long-term commitment to the space.