Pop Mart, a popular toy brand from mainland China, has recently announced the suspension of its self-developed toy mobile game “Dream Home,” despite its ongoing success in boosting business performance through LABUBU.
The game, considered a significant endeavor for Pop Mart’s entry into the gaming industry, is set to officially cease operations on August 12, 2026, due to “operational planning adjustments.” Starting from June 12, 10:00, all platform recharging and new user registrations for “Dream Home” have been closed, and download access will be gradually shut down.
Initially securing the license in early 2019, “Dream Home” by Pop Mart underwent official public testing only in June 2024, marking a pivotal moment in the company’s exploration of the gaming business.
Beijing Papa Fun Entertainment Technology Co., Ltd., responsible for the game development and operations, was established in 2016 to support Pop Mart’s internet information services and gaming-related functions.
Financial data from Pop Mart’s 2025 annual report revealed Papa Fun Entertainment’s declining revenue, with a sharp drop from 215 million yuan in 2024 to 2.7 million yuan in 2025, coupled with an increased net loss of 70.5 million yuan. By the end of 2025, the company found itself in a state of negative equity, with total assets of 36.6 million yuan and total liabilities amounting to 156 million yuan.
Intense competition within the gaming market may have been a critical factor leading to the project’s downfall. Pop Mart’s Chairman and CEO, Wang Ning, acknowledged shortcomings in both the film and gaming divisions during a recent interview.
Reflecting on the future direction, Wang highlighted the need for comprehensive development across various sectors, likening the gaming and film businesses to the “Air Force,” emphasizing the importance of broadening their impact within the market.
Despite setbacks in the gaming sector, Pop Mart experienced explosive overall business growth in 2025. The annual report showcased a significant increase in revenue to 37.12 billion yuan, a staggering 184.7% year-on-year growth, and an adjusted net profit of 13.084 billion yuan, representing a 284.5% surge, with a historical net profit margin of 35.1%. Notably, THE MONSTERS IP, associated with LABUBU, contributed 14.1 billion yuan in revenue, marking a 365% year-on-year increase.
The suspension of “Dream Home” further underscores the challenges faced by IP companies entering the gaming industry, as highlighted by industry experts such as Jia Tian from Shenzhen’s intellectual property sector.
Jia emphasized that success in the gaming industry heavily relies on research and development capabilities, long-term operational experience, and a mature industrial system, indicating that solely relying on the popularity of an IP may not be sufficient to establish long-term competitiveness.
In response to the news of the game’s suspension, Pop Mart’s stock price closed at 177 Hong Kong dollars on June 16, marking a 3.28% decline as investors reacted to the announcement.