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NetEase

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NetEase, Inc. (simplified Chinese:网易;traditional Chinese:網易;pinyin:Wǎngyì;Jyutping:mong5 ji6) is a Chinese Internet technology company founded byDing Lei in June 1997. It provides online services with content, community, communications, and commerce. The company develops and operates online PC and mobile games, advertising services, email services, and e-commerce platforms in China. It isone of the largest Internet and video game companies in the world.[4] The company owns multiplepig farms.[5] NetEase has an on-demand music-streaming service (NetEase Cloud Music). The video games include,Fantasy Westward Journey,Tianxia III,Heroes of Tang Dynasty Zero, andGhost II.[6] NetEase operated the Chinese version ofBlizzard Entertainment games from 2008 to 2023, such asWorld of Warcraft,StarCraft II, andOverwatch.[7][8][9]

NetEase, Inc.
Headquarters in Hangzhou
Company typePublic
Nasdaq: NTES
SEHK: 9999
IndustryInternet
FoundedJune 1997; 27 years ago (1997-06)
FounderDing Lei
HeadquartersHangzhou,Zhejiang, China[1]
Key people
Ding Lei (CEO)
ProductsOnline services
Video games
RevenueIncreaseCN¥ 59.24 billion(2019)[2]
Increase CN¥ 13.79 billion(2019)[2]
Increase CN¥ 21.43 billion(2019)[2]
Total assetsIncrease CN¥ 112.12 billion(2019)[2]
Number of employees
29,128 (December 2023)[3]
DivisionsNetEase YanXuan
NetEase Cloud Music
NetEase Games (Thunder Fire)
NetEase Games (Interactive Entertainment)
NetEase D&R Center Lab
NetEase Wisdom Enterprise
Youdao
NetEase News
SubsidiariesSee§ Development studios
Website163.com

History

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Ding Lei founded the company in June 1997. It grew due in part to the investment insearch engine technology.[10] In 2012, the official name was changed from NetEase.com, Inc to NetEase, Inc.[11] The company's top executives quit amid possible advertisement revenue misreporting, and buy-out talks withi-Cable Communications and others were reported.[12][13]

In 2008, the 163.com domain attracted at least 1.8 million visitors annually according to theCompete.com survey.[14] In 2010, the site was the 28th most visited site in the world according toAlexa Internet rankings.[15] NetEase's official website address is163.com. It was attributed to the past when Chinese internet users had todial "163" to access the Internet, before the availability of broadband.[16][17]

Tencent sued NetEase allegingcopyright infringement in 2014.[18]: 102  It used the leverage from the suit to convince the company to sublicense music rights.[18]: 102  The sub-licensing arrangement that resulted became a model used by other online music platforms in China.[18]: 102 

NetEase is the largest provider of free e-mail services in China with over 940 million users since 2017. The company also ran 188.com and 126.com.[19] The company operates a news website at news.163.com and an associated app.[20][21]Riot Games sued NetEase over alleged copyright violation concerningValorant in 2022.[22][23]

Expansion and acquisitions

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NetEase launched the first headquarters for the United States outside of China in August 2014.[24] It invested US$100 million intoBungie for a minority stake in the company and a seat on theboard of directors in June 2018.[25] NetEase invested Aurora 44 in New Zealand and sold the comic books toBilibili in December 2018.[26][27] In January 2020, NetEase discussed secondary listings with theHong Kong Exchanges and Clearing.[28]

NetEase opened Ouka Studios in June 2020,[29][30] but it was shut down in August 2024 afterSquare Enix completed the gameVisions of Mana.[31] In August 2020, NetEase announced a capital and business alliance with anime studioSatelight.[32]Casey Hudson established Humanoid Origin in June 2021,[33] but it was shut down in November 2024.[34] NetEase acquiredGrasshopper Manufacture fromGungHo Online Entertainment in October 2021.[35]

In May 2022,Jack Emmert founded Jackalope Games.[36] It was changed to Jackalyptic Games on May 18, 2023, and has a partnership withGames Workshop.[37]Toshihiro Nagoshi, Daisuke Sato, and several other formerSega employees established Nagoshi Studio, which is part of their subsidiary.[38] Former343 Industries employee Jerry Hook, established Jar Of Sparks on July 18, 2022.[39] However, it was shut down in January 2025.[40] NetEase received an investment for Polish VR studio Something Random,[41] and acquiredQuantic Dream in August 2022 after the 2019 minority investment.[42] It became a subsidiary of the parent company and had NetEase to have console game releases.[43] Something Wicked Games founder Jeff Gardiner announced that NetEase had invested $13.2 million for the studio.[44] FormerCapcom producer,Hiroyuki Kobayashi, established GPTRACK50 Studio in October 2022.[45] In November 2022, NetEase made a strategic investment withRebel Wolves, founded by formerCD Projekt employee Konrad Tomaszkiewicz on February 16, 2022.[46] It later acquired theNorwegian fitness startup PlayPulse.[47] NetEase acquired a minority stake for Liquid Swords.[48]

NetEase acquired the studioSkyBox Labs in January 2023.[49] In February 2023, NetEase opened the studio Spliced.[50] FormerMarvelous vice president Toshinori Aoki andBlazBlue game creator Toshimichi Mori, opened Studio Flare on September 6, 2022. It was later acquired by NetEase.[51] In March 2023, NetEase launched the Anici anime brand, making a variety of animation for various partners.[52] NetEase opened Anchor Point Studios in April 2023.[53] FormerUbisoft employee Sean Crooks opened Bad Brain Game Studios,[54] andDragon Quest producer Ryutaro Ichimura established PinCool in May 2023.[55] Jeff Dobson, Scott Malone, Mark Tucker, and Rich Vogel, opened T-Minus Zero Entertainment,[56] and NetEase launched an American studio led by Bethesda and BioWare veterans in August 2023.[57] Former Blizzard employee Greg Street established Fantastic Pixel Castle in November 2023.[58]Mac Walters' company, Worlds Untold,[59] had a "paused" operation in November 2024.[60][61]David Vonderhaar opened BulletFarm in February 2024.[62]

In February 2025, it was reported that NetEase has been shopping around other studios, looking to divest the foreign investments due to changes in the video game industry. Over a dozen studios would have to receive new fundings and avoid potential closure. Many studios had been acquired only five years prior.[63]

Partnerships

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The company has a history of partnerships with other ones.Blizzard Entertainment partnered with NetEase to bring some games for the Chinese market in 2008.[64] They announced the suspension of most game services in China, after the licensing agreement expired on 23 January 2023.[8] According to the statement,Overwatch 2,Diablo III,World of Warcraft,StarCraft,Hearthstone, andHeroes of the Storm, no longer received service on 17 November 2022.[9]

In April 2012, NetEase began testing a restaurant recommendation mobile app called "Fan Fan".[65][66] NetEase andMarvel Comics began making a comic book about a Chinese superhero in 2017. The comic books would be released online, such asThe Amazing Spider-Man,Captain America, andGuardians of the Galaxy.[27]

The company collaborated withcoursera.org to provideMassive Open Online Course.[67] NetEase launched an online course platform with educational content in 2014.[68]

NetEase,The Pokémon Company, andGame Freak, made an expanded version ofPokémon Quest calledPokémon Adventure, released in China on 13 May 2021. It contains regular updates and events unlike other versions.[69][70]

Chinese government regulation

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In October 2020, theCyberspace Administration of China ordered NetEase to undergo rectification and temporarily suspend certain comment functions, after censors found inappropriate comments on the news app.[71]

 
Gamers trying the new release of Speedy Ninja at PAX 2015

Games

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YearTitleDeveloper(s)Publisher(s)Notes
2001Fantasy Westward JourneyNetEase GamesNetEase Games
2002Westward Journey Online II
2015Revelation Online
2017Rules of SurvivalDiscontinued on 27 June 2022
2018Creative Destruction
Galactic FrontlineOnline title, Closed in 2020[72]
Identity V
LifeAfter
2019Cyber Hunter
Sky: Children of the LightThatgamecompanyPublished in China only
Marvel Super WarNetEase Games
Super Mecha ChampionsDiscontinued on 20 January 2025
2020Marvel Duel
Bloodstained: Ritual of the NightArtPlayAndroid and iOS ports
2021Ace RacerNetEase Games
Naraka: Bladepoint24 Entertainment
AstracraftNetEase GamesDiscontinued on 21 December 2022
The Lord of the Rings: Rise to WarWarner Bros. Games
2022Diablo ImmortalNetEase Games,Blizzard EntertainmentBlizzard Entertainment
Eggy PartyNetEase GamesNetEase Games
Mission Zero
Hyper FrontNetEase Games, BattleFun Games
Lost LightNetEase Games
2023Dead by Daylight MobileBehaviour Interactive, NetEase GamesBehaviour Interactive, NetEasePublished in China only
2024BloodstrikeNetEase GamesNetEase GamesAvailable on iOS, iPadOS, Android, and Windows
Once HumanNetEase, Starry StudioNetEase Games, Starry StudioAvailable on Android, iOS, and Windows
Marvel RivalsNetEase GamesNetEase Games
2025Rusty RabbitNitroplus
FragPunkBad Guitar Studio
TBARacing MasterDahua Studios,Codemasters
Tom and Jerry: ChaseNetEase GamesWarner Bros. Games
Harry Potter: Magic AwakenedNetEase, Envoy GamesNetEase Games,Portkey Games, Envoy Games
Where Winds MeetEverstone StudioNetEase Games
Project: BloodStrikeNetEase Games
Project: E.O.E
Project: EXTREME
AnantaNetEase Games, Naked Rain

Licensed online games

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  • Three-year agreement to licenseOverwatch in PRC[73]
  • Agreement to licenseMinecraft and the pocket edition in China[74]
    • Operated the Chinese third-partyMinecraftHypixel server, which was shut down on 30 June 2020[75]
  • Assumed the publishing ofEve Online in the Chinese market in October 2018[76]

Game Technology

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NetEase develops two in-house game engines for some video games:Messiah Engine and NeoX.[77]

Development studios

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StudioLocation
NetEase GamesShanghai,Guangzhou andHangzhou, China
Grasshopper ManufactureTokyo, Japan
PinCool
Nagoshi Studio
NetEase Games Tokyo
GPTRACK50 StudioOsaka, Japan
Studio FlareGotanda, Tokyo, Japan
Quantic DreamParis, France
Jackalyptic GamesAustin, Texas, United States
T-Minus Zero Entertainment
Anchor Point StudiosSeattle,Washington, United States andBarcelona, Spain
NetEase Games North AmericaLos Angeles,California, United States
BulletFarm
NetEase Games MontrealMontreal,Quebec, Canada
SkyBox LabsBurnaby,British Columbia, Canada
Bad Brain Game StudiosToronto,Ontario, Canada
SplicedManchester, United Kingdom
NetEase Games KoreaSeongnam, South Korea
Liquid SwordsStockholm, Sweden
Fantastic Pixel CastleRemote studio

References

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External links

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