On May 23, NetEase released its financial report for the first quarter of 2024. During the subsequent earnings call, NetEase CEO Ding Lei and the management team shared the preparations for key new products in the second half of the year and provided insights into adjustments to certain gameplay aspects of "Fantasy Westward Journey."
"Yan Yun Sixteen Sounds" to debut on PC in July, "Endless Rebirth" mobile game to launch in the summer
Regarding the progress of the cross-platform release of "Yan Yun Sixteen Sounds," Ding Lei mentioned that the PC version is ready for public testing, while the resources and content for the mobile version are also prepared and undergoing performance optimization and testing, expected to launch slightly after the PC version. Previously, the Chinese server of "Yan Yun Sixteen Sounds" announced its public testing scheduled for July 26. Additionally, preparations for the game's overseas release are also underway.
Regarding the feedback from testing and the expected launch time of the mobile game "Endless Rebirth," the NetEase management stated, "After multiple tests, we have felt the high anticipation from players for this game. The development team has also confirmed the innovative gameplay and operability on mobile, further boosting our confidence." They revealed that the final optimizations before the launch of "Endless Rebirth" mobile game are currently underway, with an expected launch date during the summer. Data indicates that the game garnered millions of pre-registrations within the first two weeks of its initial testing, with over 25 million pre-registrations across all platforms post-testing, rapidly gaining popularity and positive feedback.
Addressing investor interest in the multiple shooting games unveiled at the NetEase Games 520 Conference, Ding Lei responded, "Shooting games are one of the most important categories in the gaming industry and are highly popular among international users. NetEase attaches great importance to this genre." He mentioned that several shooting game products that NetEase started developing a few years ago will be launched this year. Previously, NetEase Games unveiled over ten new products at the 520 Conference, including titles like "Seven Days World" and "Land of Broken," among others in the shooting game category. "Seven Days World" has already made it to the top ten of the global wish list on the Steam platform due to its high quality, generating significant anticipation among players.
Adjusting certain gameplay aspects of "Fantasy Westward Journey" for long-term operations, NetEase will listen to player feedback
Regarding recent rule adjustments in certain gameplay aspects of "Fantasy Westward Journey," NetEase CEO Ding Lei mentioned that these changes are part of the long-term operational strategy for the product, expected to be completed in the first half of this year. The goal is to meet player demands and make the game more popular.
Ding Lei also encouraged players of the PC version of "Fantasy Westward Journey" to provide more suggestions and feedback to the development team, stating, "We will humbly listen to users' opinions and incorporate more innovation and fun content into the product. The entire company values the future of this product greatly."
On May 21, "Fantasy Westward Journey" released a regular maintenance notice, which included adjustments to certain gameplay aspects and increased player welfare benefits. These adjustments, such as increasing the number of free warehouses and discontinuing the controversial "Miaobi Danqing" gameplay in the pocket version of "Fantasy Westward Journey," further enhance the game ecosystem, meet the demands of the majority of players, and receive support.
It is noted that this is not the first time NetEase has adjusted its long-term operational strategy for products. Over the more than 20 years since the launch of the "Fantasy Westward Journey" series, there have been multiple long-term adjustments, making the product a typical representative of evergreen games in the gaming industry. In the first quarter of 2024, the revenue from the mobile version of "Fantasy Westward Journey" reached a new high. Another premium game from NetEase, "Egg Party," also achieved rapid growth after over half a year of continuous product optimization, driving NetEase to break through in the field of high DAU games.
The financial report shows that NetEase's net income for the first quarter was 26.9 billion yuan; under non-GAAP, the net profit attributable to the company's shareholders was 8.5 billion yuan, meeting market expectations. Revenue from games and related value-added services reached 21.5 billion yuan, with long-term operational products like "Fantasy Westward Journey" mobile game and "Identity V" achieving record-high revenues. The accelerated global release of self-developed new products across all platforms forms a robust foundation with various product categories contributing to NetEase's strong performance.
