Core Viewpoint - The gaming industry is witnessing a trend where mobile game manufacturers are withdrawing from channel servers due to the criticized high revenue-sharing model imposed by Android channels, particularly OPPO [1]. Group 1: Industry Trends - Since October, several popular mobile games from NetEase have withdrawn from OPPO channel servers, including titles like "Fantasy Westward Journey," "Sky: Children of the Light," and "Big Talk Westward Journey" [1]. - Players are required to migrate their accounts and assets within a limited timeframe to continue playing on NetEase's official servers [1]. Group 2: Company Actions - The withdrawal from channel servers is part of a long-standing conflict within the industry regarding channel partnerships and revenue sharing [1]. - In 2021, NetEase's founder, Ding Lei, publicly criticized the high revenue-sharing model of Android channels during a financial report conference call [1].

Core Viewpoint - The gaming industry is witnessing a significant shift as multiple game developers, including NetEase, are withdrawing their games from Android channel servers, rejecting the high revenue share model imposed by these platforms [1] Group 1: Industry Trends - Since October, several popular NetEase mobile games have exited the OPPO channel, with players required to migrate their accounts to continue playing on official servers [1] - The trend of "unbinding" from channel servers has been ongoing, with classic titles like "Dream of the Red Chamber" and "Light Encounter" also terminating their partnerships with OPPO [1] Group 2: Revenue Share Dispute - The high revenue share model for Android channels, which can reach up to 50%, has been publicly criticized by industry leaders, including NetEase's founder, who argues that this is detrimental to the industry ecosystem [1] - The shift away from traditional channel servers is partly due to a significant decline in natural traffic from mobile app stores, prompting game developers to explore alternative platforms like Douyin, Bilibili, and TapTap for customer acquisition [1]

Core Insights - Key personnel departures at NetEase Games indicate significant organizational adjustments within the company, with three core executives leaving in 2023, including game producer Li Kaiming, who cited personal career development as his reason for leaving [2][3][9] Group 1: Executive Departures - Li Kaiming, producer of the successful game "Rate of the Land," has left NetEase to pursue entrepreneurial ventures, marking him as the third high-level executive to depart this year [2][3] - Other notable departures include Shao Yun, former president of the Tianxia Division, and Jin Tao, former president of the Zen Division, both of whom managed key business areas within NetEase [2][9] - The departures reflect a broader trend of organizational restructuring within NetEase, as the company adapts to changing market conditions and internal strategies [2][9] Group 2: Impact on Game Development - Li Kaiming's tenure at NetEase was marked by the successful long-term operation of "Rate of the Land," which has been recognized as a model for long-term product lifecycle management [4][9] - The company has emphasized a shift from a producer-driven model to a more centralized approach, aiming to balance creative input with strategic oversight [5][9] - Jin Tao's departure and subsequent entrepreneurial efforts highlight the challenges faced by the Zen Division, particularly in expanding new business lines and maintaining performance amid strategic shifts [6][9] Group 3: Financial Performance and Strategic Shifts - NetEase's gaming revenue for Q2 2024 was reported at 22.8 billion yuan, reflecting a 13% year-on-year increase but a 5% quarter-on-quarter decline, indicating a potential slowdown in growth momentum [9] - The company is navigating the balance between cost control and innovation, which will be crucial for the long-term development of its core intellectual properties [9][10] - The departures of key executives may open new opportunities in the gaming industry, as former leaders explore entrepreneurial ventures in niche markets [10]

Core Viewpoint - The departure of Li Kaiming, the producer of the popular SLG game "Rate of the Land," from NetEase marks a significant shift in the company's gaming strategy amidst a challenging industry environment [2][7]. Group 1: Departure of Li Kaiming - Li Kaiming announced his departure from NetEase on the 10th anniversary of "Rate of the Land," citing personal career development plans [2][3]. - He has been with NetEase since July 2013, holding various leadership roles and contributing to successful projects like "Rate of the Land" and "Endless Lagrange" [5]. Group 2: Impact on NetEase and the Gaming Industry - The gaming industry is experiencing a downturn, leading companies, including NetEase, to become more sensitive to project decisions [8]. - The next project Li was set to lead, "Ten Thousand People Long Song: Three Kingdoms," has been paused due to unsatisfactory market feedback [7][8]. - NetEase's previous successful development model, which relied on producer-led large projects, is undergoing changes, necessitating a focus on mature or high-potential projects rather than new, less proven titles [8].

Group 1 - Several games under NetEase, including "Onmyoji" and "Identity V," experienced login issues due to technical faults, prompting urgent investigations and repairs from the company [2][3] - NetEase's "Identity V" reported that the login issue was resolved within an hour, and players would receive compensation in the form of in-game items [3] - This incident is not the first large-scale login failure for NetEase games in 2023, with multiple titles facing server issues on March 3, affecting user access and daily tasks [4] Group 2 - On March 4, NetEase attributed the login issues to a severe network failure from China Mobile, which affected users relying on that service [6] - NetEase's Q1 2025 financial report indicated that revenue from games and related services reached 24 billion yuan, a year-on-year increase of 12.1% and a quarter-on-quarter increase of 13.2% [6] - Online games accounted for 97.5% of the total revenue, approximately 23.4 billion yuan, with significant contributions from "Identity V" and new titles like "Yanyun Sixteen Sounds" and "Marvel Showdown" [6]