Core Insights - In 2025, NetEase Games is facing an unprecedented anti-corruption storm, revealing deep-seated issues such as stagnating growth, ineffective blockbuster game production methods, and intense internal factional struggles [3] - Founder Ding Lei has taken control to dismantle the entrenched factional culture and has introduced complex management processes, which have increased employee pressure and marginalized projects [3][4] Financial Performance - In Q3 2024, revenue from games and related value-added services was 201 billion yuan, accounting for nearly 80% of NetEase's total revenue, but this represented a year-on-year decrease of 4.2% [3] - In Q1 2025, revenue increased to 209 billion yuan, but net profit is expected to be between 68.86 billion yuan and 75.67 billion yuan, down from 78.86 billion yuan in the same period last year, indicating weak growth [3] Internal Issues - Multiple executives and employees have been criminally investigated for corruption, with the involved contract amounts reaching 2 billion yuan, and actual amounts estimated between 800 million yuan and 1 billion yuan [3] - Corruption in the game marketing sector has been exposed, with advertising agents engaging in kickbacks and rebates, creating an environment conducive to corruption [3] Management Changes - Ding Lei has returned to frontline management since 2023, actively participating in daily operations to combat internal factionalism and corruption [4] - Organizational restructuring has occurred, including the splitting of the Tianxia division into three and the establishment of the Xingjian studio to enhance investment in female-oriented games [4] Employee Impact - New management processes have led to increased employee burdens, with staff required to work at least 10 hours a day or face warnings [4] - Project deadlines have intensified, with projects being halted if they do not show potential for blockbuster success, leading to many projects failing before launch [4]