NetEase imposes a clear rule: games with low performance will be closed without hesitation

Executive makes it clear that projects will need to generate profits to survive

If a game is not successful, it will be discontinued. That was the direct and straightforward message that NetEase, one of the giants in the gaming industry, made very clear during its latest conference call with investors. Ding Lei, CEO of the company, stated that the company's strategy is to only keep games that meet market expectations and generate high financial returns.

NetEase's new directive: survive or die

NetEase, which recently launched the successful Marvel Rivals and reached the impressive milestone of 40 million players, does not seem willing to keep titles that do not have a strong commercial appeal. During the presentation of its 2024 fiscal report, the company highlighted that its gaming segment generated around $11 billion. However, this success did not prevent a wave of layoffs and internal strategic adjustments.

In his words, Ding Lei was categorical:

"If we launch a game that is not aligned with market demand, we will aggressively and decisively discontinue it; we will also increase our investment in projects that meet quality and efficiency standards."

The CEO also emphasized that game development can take three years or more, making it essential for the company to quickly adapt to market trends.

"From the beginning to the completion of a project, it is crucial to adjust to the market landscape. Depending on circumstances, support for a game may be expanded or completely withdrawn."

In summary: if a game does not make money, it will be terminated. But if it is profitable, it may receive even more investment.

A ruthless, but efficient approach?

NetEase's stance is not exactly new in the gaming industry, but its transparency about the survival criteria of its titles caught attention. Companies like Electronic Arts have already cancelled high-budget games, such as Anthem NEXT, for not meeting commercial expectations. Even Ubisoft, known for keeping its franchises active for long periods, has cancelled several projects in recent years to focus on titles with greater financial potential.

NetEase's strategy seems to indicate a path without room for experimental or long-term projects without a clear guarantee of success. Will this approach lead the company to create only highly commercial games, with no room for innovation? Only time will tell.