NetEase has shed light on the restructuring of its overseas studios, and has also revealed plans to put a greater focus on GaaS for the global market.
During its fourth quarter and fiscal year 2024 earnings call on February 20, 2025, NetEase CEO Ding Lei was asked about the company’s recent situation involving its overseas studios. In response, he said that if the publisher finds that some projects aren’t in line with market demands after launch, it will actively and decisively put an end to them. He added that NetEase will also boost resources and investment in projects that deliver good quality and meet efficiency standards.
According to the NetEase CEO, it takes a long time – three years or even longer – to develop and launch a game. Therefore, he said that, during the whole process of conceiving a project and taking it to its completion, the company must constantly adapt to future market trends. Depending on the circumstances, support for a project may be boosted or pulled entirely. NetEase will, therefore, focus on GaaS titles with the aim of winning overseas markets. The company is doing just that with its third-person hero shooter, Marvel Rivals.
Multiple sources had recently confirmed that NetEase will be divesting itself of a majority of its overseas development teams, leading to the closure of many of its game studios in the event that they are unable to secure future funding. The company’s overseas studios include Quantic Dream, Grasshopper, Nagoshi Studio, Pincool, GPTRACK50 Studio, Studio Flare, Jackalyptic Games, Anchor Point Studios, T-Minus Zero Entertainment, Rebel Wolves, and Skybox Labs.
When reached out for clarification, a representative of NetEase echoed what CEO Ding Lei mentioned during the earnings call. They said that all of the company’s studios and projects are in constant review and evaluation, and that it will determine changes that need to be made throughout the process.
