Papergames invests in emotional AI robots, suggesting that virtual gaming characters might take on a tangible form.
Credit: Love and Deepspace
Chinese gaming company Papergames has recently listed several AI robotics-related job openings on recruitment sites, including roles such as AI robotics structural lead, hardware engineer, and product manager specializing in hardware supply chains. This development marks the company's official entry into the AI companion robot market as it aims to bridge the emotional connection of its virtual characters with the physical realm.
Credit: Love and Deepspace
Integration of virtual IP and physical hardware
Papergames owns several popular female-focused intellectual properties, including Love and Producer, Love and Deepspace, and Shining Nikki, which have drawn millions of users and cultivated deep emotional bonds with their virtual characters.
With its foray into AI robotics, the company likely seeks to create a comprehensive ecosystem that combines intellectual property, software, and hardware, utilizing tailored interaction logic and emotional expression systems to mimic the personalities, language styles, and emotional reactions of its characters.
Users might interact with a physical robot representing a male character from Love and Deepspace, potentially realizing the fantasy of transforming a 2D virtual partner into a tangible presence.
Challenges in hardware development and cost pressure
Despite Papergames’ established experience in managing virtual characters, it confronts substantial technical challenges in hardware development. The current field of AI companion robots has yet to overcome generalization obstacles, with many products capable of performing tasks only in specific contexts, leading to a significant decline in success rates when environmental conditions change.
Papergames must address the key issues surrounding embodied AI models while balancing costs and user experience. Currently, high-end companion robots are typically priced between 30,000 and 360,000 yuan ($4,200 to $50,400), making them unaffordable for the average consumer.
Emotional economy opens a new market
Papergames’ entrance adds a new dimension to the AI companion market. Unlike conventional toy manufacturers, the company's user retention is rooted in emotional connections to virtual characters, resulting in a greater willingness to pay and stronger brand loyalty.
According to VG Times, the data analytics firm Gacha Revenue revealed in its 2025 report on mobile gacha game revenues that Love and Deepspace generated $711 million, leading the list.
If the emotional significance of virtual characters can be effectively combined with the capabilities of physical hardware, it could create a unique market for emotional hardware and transform the dynamics of human-machine interaction.
Currently, major tech firms such as JD.com and Huawei have started to penetrate the market with their own AI plush toys and emotional companion products, while startups are continuously innovating in interaction design.
Whether Papergames' interdisciplinary effort can navigate technical hurdles and strike a balance between emotional engagement and functionality will be a critical focus for industry watchers.
Jessie Wu is a tech reporter based in Shanghai, covering consumer electronics, semiconductors, and the gaming industry for TechNode. Reach out to her via email: jessie.wu@technode.com.
More by Jessie Wu
Other articles
This new Android flagship competitor is taking zoom capabilities beyond those of Apple and Samsung.
The forthcoming Oppo Find X9 Ultra will include a new 10x optical zoom camera equipped with a revamped periscope system, with the goal of advancing smartphone photography.
The team password manager is priced at $1.50 and has recently introduced features that are essential for businesses.
Passpack's 2026 update introduces Active Directory integration, Just-In-Time provisioning, and SOC 2 Type II certification for its business password manager, beginning at $1.50 per user per month.
Papergames invests in emotional AI robots, suggesting that virtual gaming characters might take on a tangible form.
Chinese gaming company Papergames has recently listed various AI robotics-related positions on recruitment websites, including roles in AI robotics.