Xin Lang Ke Ji·2025-10-31 00:32Core Insights - The departure of key figures from NetEase's game divisions reflects internal competition and a shift in power dynamics from the Guangzhou faction to the Hangzhou faction [1][11][12] - The company's recent struggles with game launches, particularly the failure of "射雕," highlight issues with internal processes and a lack of successful new titles [4][7][10] - NetEase is undergoing a strategic transformation, moving from a reliance on top producers to a more standardized and data-driven approach in game development [10][17] Group 1: Leadership Changes - Li Kaiming, head of NetEase's tenth division, is the third senior executive to leave within a year, following Jin Tao and Shao Yun [1][8] - The departures indicate a significant shift in leadership, with potential impacts on the strategic direction of the company [12][19] Group 2: Game Performance and Strategy - The MMORPG "射雕," which had a budget of 1 billion and a team of 600, will cease operations in November 2025 due to underperformance, despite high initial expectations [4][7] - The game peaked at 15th on the iOS sales chart but quickly fell to 44th the next day, with monthly revenue dropping to 533,000 yuan two months post-launch [4][5] - NetEase's game studios have seen at least seven adjustments or closures in the past two years, indicating a broader trend of strategic contraction [2][9][12] Group 3: Internal Challenges - Internal bureaucracy and "formalism" are cited as significant barriers to success, with employees spending excessive time on reporting rather than focusing on game development [1][5][10] - The competitive relationship between Guangzhou and Hangzhou studios has led to operational inefficiencies, particularly in the Guangzhou studios, which are described as "autonomous" [5][11] Group 4: Market Position and Competition - NetEase's gaming revenue for Q2 was 22.8 billion yuan, a 13.7% year-on-year increase but a 5% decline from the previous quarter, indicating a slowdown in growth [17] - The company faces increasing pressure from competitors like Tencent and miHoYo, which have successfully launched popular titles and maintained strong market positions [15][16][17]