NetEase, a Chinese gaming giant, reported a total revenue of ¥81.6 billion ($11.5bn) from its games division in 2023, based on its most recent financial report. This marks a 9.4% increase from the previous year, where games generated ¥74.6bn ($10.4bn). The gross profit for the division also saw a significant rise of 18.9% year-over-year to ¥55.5bn ($7.8bn).
Overall, NetEase reported a total revenue of ¥103.5bn ($14.6bn) across its business, with a gross profit increase of 19.5% from ¥52.8 billion ($8.8bn) in 2022 to ¥63.1bn ($8.9bn).
Year-on-year success
Mobile game earnings accounted for over 75% of NetEase’s revenue in 2023, up from 67% in the previous year. This growth has been attributed to successful revenue generation by games like Justice and Eggy Party, with Eggy Party surpassing 500 million players in less than two years.
In Q4, the company generated a gross profit of ¥16.8bn ($2.4bn), a 27% increase year-over-year. Profits at its games division rose by 9.6% year-on-year to ¥20.9bn ($2.9bn) during the quarter.
“2023 proved to be another landmark year for NetEase Games with continuous cross-category innovations that expand and diversify our robust game portfolio,” said NetEase CEO and director William Ding.
“The success of games like Eggy Party and our heralded new titles, such as Racing Master and Dunk City Dynasty, highlights our ability to bring players dynamic and original products in multiple genres.
“At the same time, we have maintained a strategic advantage with our MMO roots, propelling Justice mobile game to transcend the boundaries of conventional MMO gaming.
“Alongside our business’s momentum, we have assumed increasing social responsibility. By integrating a ‘Minors Mode’ across our domestic game lineup, we have strengthened our existing anti-addiction system and continue to steer the gaming ecosystem toward a healthier trajectory with innovative products and technology.”
