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NetEase stock plummets following Diablo Immortal delays

Declines of more than nine per cent, from 151.50 HKD to 136 per share, as the firm announces a delay just days before its intended release date
NetEase stock plummets following Diablo Immortal delays

Just three days prior to Diablo Immortal’s release in China, gaming company NetEase announced the delay of the game, resulting in a nine per cent decline in share value, according to Reuters.

NetEase were due to release the game on Thursday June 23, but said on Sunday June 19 that the release has been delayed as the team wanted to make “multiple optimisation adjustments”, as well as improve the gameplay experience. No new launch date has been set.

In response to this delay, NetEase stock fell more than nine per cent on Monday, from 151.50 HKD to 136 per share: the lowest price since April 26. Although the stock has rebounded slightly over the day, reaching 141 HKD per share at the time of writing.

NetEase received a gaming license from Chinese regulators for Diablo Immortal in February 2021, months before new game licenses were halted for almost nine months. Given that the subject matter of the game features killing demons and witches, it is speculated that the regulators took issue with the violent and religious content.

While mobile comprised almost 70 per cent of NetEase's fiscal year 2022 revenue, the firm announced its first US studio, Jackalope Games, will be working on PC/console titles exclusively.