Core Insights - NetEase's revenue growth in Q3 2025 was primarily driven by its game "Evergreen Games," achieving a net income of 28.4 billion yuan, a year-on-year increase of 8.2% [2] - The company reported a net profit of 9.5 billion yuan under non-GAAP standards, reflecting a significant year-on-year growth of 33.3% [2] Financial Performance - In Q3 2025, NetEase's net income reached 28.4 billion yuan, compared to 27.9 billion yuan in the previous quarter and 26.2 billion yuan in the same quarter last year [3] - Revenue from games and related services was 23.3 billion yuan, with a 2.2% increase from the previous quarter and a 11.5% increase year-on-year [3] - Online games accounted for approximately 97.6% of the revenue in this segment, up from 97.1% in the previous quarter and 96.8% year-on-year [3] Game Performance - The increase in online game revenue was attributed to self-developed games like "Dream of the Westward Journey" and "Reverse Water Cold," as well as several agency games [3] - "Dream of the Westward Journey" achieved a record high of 3.58 million concurrent players, marking a strong performance in long-term game operation [3][4] - The launch of the "Dream of the Westward Journey" free play server aimed to attract long-lost users and new players by simplifying gameplay and removing time-based charges [4][5] New Game Development - NetEase introduced several new games in Q3, including "Fate: Stars" and "Reverse Water Cold," which performed well in both domestic and international markets [6] - The company is focusing on the upcoming game "Forgotten Sea," which is being developed with a self-built engine and will be available on multiple platforms [7] Industry Context - Tencent's gaming revenue in Q3 was 63.6 billion yuan, with significant growth in both domestic and international markets, highlighting the competitive landscape [7] - Analysts noted that while NetEase's older games are evolving into IP extensions, Tencent's established titles continue to perform strongly, indicating differing strategies in a saturated market [8] Internal Adjustments - Following the return of CEO Ding Lei, NetEase has undergone organizational adjustments, including staff changes aimed at enhancing focus and efficiency [9][10] - The company is prioritizing long-term projects and optimizing resources towards successful teams while being decisive about underperforming ones [10]