NetEase Games Excels in 2015 with Highly Anticipated Future Ahead
GUANGZHOU, China, Feb. 25, 2016 – NetEase, Inc., has recently released its unaudited financial results in fiscal year 2015. According to the report, its net revenues from online games accounts for 75.9% of total net revenue of NetEase in 2015 and increases to RMB 17.3 billion (approx. USD 2.7 billion) from RMB 9.3 billion for the preceding fiscal year, with year-on-year growth of 86.9%. Gross profit for online game services was RMB 11.9 billion (approx. USD 1.8 billion), margin of which reached 68.8%.
Although games are maturing fast, mobile gaming revenue has become less concentrated. NetEase Games, however, not influenced by massive shifts of revenue and rising competition in the market, has made great achievement in 2015. Topping the ranking in the latest Investor’s Business Daily (IBD) 50 Index released in January, 2016, NetEase is commented by the index as “Chinese firm moving from heavy focus on PC games to mobile gaming.”
The company’s outstanding performance gives large credit to its product and operation strategy, which in 2015 was mainly reflected in high quantity and high quality. NetEase is now at the forefront in the market with the industry cycle has a shorter maturity.
NetEase has released five new high-end PC games in 2015, and the most important category of mobile games saw 57 new releases, including 22 licensed games and 35 self-developed games, among which 19 were based on famous IPs (Intellectual Property).
In the high frequency of new product releases, NetEase has also been committed to improving product quality and operational methods. Focused on user experience, several high quality games from NetEase have been recognized by global gamers. The games topped more than 10 gaming awards and rankings at home and abroad.
NetEase’s signature mobile game Fantasy Westwad Journey Mobile has gained over 60 million registered users with peak concurrent users exceeding 2 million. The game also topped China’s iOS ranking for over 200 days and was the only game to be on Free Downloads and Top Grossing chart on iPhone and iPad in 2015.
Also, the company’s self-developed multiplayer online battle arena (MOBA) mobile game Battle to the West 2 was awarded Google Play’s Best Game Award in 2015. In December, 2015, NetEase’s first atmospheric puzzle game Lunar Flowers, was featured in the annual selection of iPad Games in Hong Kong and 2015 roundup of iPad Games in Taiwan, and also recommended in the app stores of 112 countries. At the same time, its first atmospheric color-based puzzle game, The Beautiful Dream, was ranked #2 on Free Downloads Chart of China’s iOS App Store.
Moreover, NetEase introduces licensed games not only to offer users more options of games but to deliver better experience, including Blizzard Entertainment’s Hearthstone®: Heroes of Warcraft™, Kai-ri-sei Million Arthur, World Soccer Collections and Chrono Blade that have obtained high achievements and positive word-of-mouth. Its upcoming licensed 3D action role-playing mobile game, Raven, brings console quality with splendid action to its users while the mobile puzzle game Dream City offers a social side of life experience.
“Last year, NetEase Games’ excellent performance in PC and mobile games was the result of the complete process we developed to launch new games. We apply desk research and focus groups with key players for user feedback to adjust the games accordingly. We respect the opinion of every game player and promptly update the games; it’s also the foundation of NetEase Games,” said Mr. William Ding, CEO of NetEase.
Although NetEase only started to develop its mobile games in 2013, the success in the past two years shows that the company’s strong foundation in the gaming industry is being transformed to new forces. NetEase has also developed strategies for the international market.
In addition, NetEase Games will also expand collaborations with international partners. The company now invests in five projects abroad, including the Reforced Studios of Finland, and ArtPlay of Japan, whose project managers are from leading game development companies in the industry.
Combining independent development with self-owned IP will still be a key development strategy of NetEase Games in 2016. On the basis of its excellent performance in 2015, the company will continue to deliver high quality games to its players worldwide.
About NetEase Games
Founded in 2001, NetEase Games has been a world leading game developer and publisher. The company has been devoted to developing and exploring high-end games for game enthusiasts. NetEase offers a wide range of games including self-developed mobile games like “Battle to the West“, “The World HD“, mobile version of “Fantasy Westward Journey“, and self-developed PC games, such as Revelations. NetEase is also in partnership with Blizzard Entertainment Inc. to publish world famous online games such as World of Warcraft, Hearthstone: Heroes of Warcraft and Diablo III: Reaper of Souls.
