NetEase games revenue rises to $2.9 billion in Q4 

NetEase reported Q4 2024 net revenues of ¥26.7 billion ($3.7bn), down 1.4% year-over-year. 

That's according to the company's latest financials, which shows that gross profit fell 3.3% to ¥16.3bn ($2.2bn), but total operating expenses dropped 15.1% to ¥8.5bn ($1.2bn).

Net revenue from mobile games accounted for approximately 65.3% of net revenue from the company’s online games segment. That has shrunk from 70.8% in Q3 and 76.7% during the same period the year prior. Overall games revenue grew 1.5% to ¥21.2bn ($2.9bn) in Q424.

For FY 2024, net revenues reached ¥105.3bn ($14.4bn) while games contributed ¥83.6bn ($11.5bn), with online games making up 96.2% of that total, up from 92.9% in 2023. Mobile games accounted for 72.7% of online game revenue, down from 75.2%, due to increased PC game revenues from titles. 

Gross profit rose to ¥65.8bn ($9bn), driven by strong performance in Identity V, Naraka: Bladepoint, and mobile titles.

Building a new structure

NetEase said that December’s PC and console release, hero shooter Marvel Rivals, topped Steam’s global top sellers chart. It also amassed 10 million registered users within 72 hours and has garnered 40 million players to date.

The publisher said the fall in share was mainly due to increased revenue from PC games.

Despite the success, the publisher recently laid off the entire staff from its Seattle design team to “adjust Marvel Rivals’ development team structure for organisational reasons and to optimise development efficiency for the game," a NetEase representative told PC Gamer. 

Elsewhere, Where Winds Meet surpassed 3m downloads in China within four days and hit 15m players across PC and mobile, while Justice Mobile saw impressive iOS charts in Hong Kong, Macau, and Taiwan. Blizzard titles, including World of Warcraft and Hearthstone also remained popular in China, the publisher said.

NetEase's upcoming games lineup for global markets includes Fragpunk, Destiny: Rising, and MARVEL Mystic Mayhem. 

Setting benchmarks 

“We boldly pushed the boundaries of innovation once again in 2024, delivering groundbreaking gaming experiences that captivated players worldwide,” said NetEase CEO and director William Ding. 

He added: “Our new hit titles not only redefined gameplay but also set new industry benchmarks, while our legacy franchises gained fresh momentum through striking enhancements in design, storytelling and immersive content. 

“As our diverse game portfolio expands across more genres and engages an ever-growing global audience, we remain dedicated to fostering creativity and collaborating with top talent and strategic partners to shape the next wave of gaming trends.”