NetEase, Inc. holds a prominent position in China’s video game industry, on both mobile devices and computers. Known for its multiplayer worlds and long-term operation of games, the group combines content creation, distribution and community engagement. Its portfolio extends beyond interactive entertainment, however: email, online music, educational services and e-commerce build on a history that began with the first mainstream uses of the Internet in China.
From an Internet Portal to a Publicly Listed Group
NetEase was founded in 1997 by Ding Lei, also known as William Ding. The company initially developed a portal and Internet services, notably email, before making online gaming a central focus of its expansion. It listed on Nasdaq in 2000, followed by a secondary listing in Hong Kong in 2020. These two financial centers support its development beyond its home market.
Games inspired by the classic Chinese novel Journey to the West, including Fantasy Westward Journey and Westward Journey Online II, helped establish its model: developing recognizable franchises, then regularly expanding them to retain players. This ability to sustain persistent worlds remains a cornerstone of its business.
From In-House Franchises to International Partnerships
Video games account for the bulk of NetEase’s business activity. The group develops and publishes titles spanning several genres, from multiplayer role-playing games to competitive action games. Identity V illustrates its expertise on mobile, while Naraka: Bladepoint, developed by its studio 24 Entertainment, reflects its positioning in action games for PC and consoles. In-game purchases and additional content play an important role in monetizing its portfolio.
NetEase also acts as a partner for foreign publishers in China. Its relationship with Blizzard is one example: following the suspension of several services in 2023, the two companies announced a new agreement in 2024 allowing Blizzard games to return to the Chinese market. At the same time, NetEase has invested in studios outside China to diversify its creative capabilities. Its other businesses include Youdao in education, NetEase Cloud Music in music and Yanxuan in e-commerce.
What Now?
NetEase’s trajectory will depend on its ability to refresh its franchises while building a lasting international audience. In China, approvals to release games and rules governing access for minors are key factors. Abroad, the group must contend with high production costs and intense competition for players’ attention. The challenge will be to turn its creative investments into games with staying power, without relying solely on past hits or licensed titles from partners. Its corporate website is available at netease.com.