Last week, the Chinese company NetEase published a report on the results of the first quarter of 2026. Among other things, it announced that its gaming division continues to increase revenue, albeit not at the fastest pace.
Where Winds Meet
- From January to March 2026, NetEase achieved a net revenue of 30.6 billion yuan ($4.4 billion). Compared to the beginning of 2025, this amount increased by 6.1%.
- The company's net profit reached 10.84 billion yuan ($1.6 billion) — a growth of 2.8%.
- Games accounted for 84% of NetEase's revenue. They earned 25.7 billion yuan ($3.7 billion) for the quarter, which is an increase of 6.9% compared to the previous year. While NetEase did not disclose the net profit of the division, it did provide information on gross profit — which grew by 16% over the year and totaled 19.2 billion yuan ($2.8 billion).
- According to NetEase, this time the gaming division's growth was bolstered by Fantasy Westward Journey and Where Winds Meet. Both titles showed excellent engagement. For example, the PC version of Fantasy Westward Journey set a new record for peak online users, reaching 3.9 million people.
- NetEase is also pleased with the successes of Marvel Rivals, Identity V, Eggy Party, and Sword of Justice.
- NetEase did not comment on rumors about the potential cessation of funding for Quantic Dream and mass layoffs at the studio. It also did not address the broader topic of reevaluating investments in Western teams. Recall, since the end of 2025, the company has been divesting assets outside of China, which has already led to the closure of several studios.
- A recent fine of 2 million rubles due to violations of Russian legislation on the localization of personal data is also not mentioned in the NetEase report.