Shulou(Shulou.com)11/24 Report--

On November 16, NetEase announced the third quarter results of 2023. In the third quarter, NetEase's net income was 27.3 billion yuan; under non-GAAP, the continuing operating profit attributed to the company's shareholders was 8.6 billion yuan; the R & D investment was 4.3 billion yuan, and the R & D investment intensity led the industry by 16%. In the first three quarters, NetEase invested more than 12 billion yuan in research and development, accelerating the mass application of AI self-research model and other technologies in education, entertainment, industry and other fields.

In the subsequent earnings call, NetEase CEO Ding Lei and NetEase executives interpreted the 2024 new product schedule, the strategy of popular new products such as "upstream cold" mobile games, and the direction of game research and development, and other issues of concern to investors.

In this earnings call, NetEase management disclosed the preparations and launch plans for a number of new games. The mobile games of "shooting Sculpture", "Yanyun Sixteen Sound" and "Mission Zero" are now in the final stage of preparation before launching. Among them, "shooting Eagle" and "Mission Zero" will be online by the second quarter of next year at the latest. In this regard, NetEase CEO Ding Lei stressed: "NetEase's every product is carefully polished before it will be pushed, only think that the quality is guaranteed, we will provide services to users."

In the third quarter, the number of MMORPG game users exceeded 50 million, causing investors to pay attention to its user source, payment strategy and ARPU (average income per user). NetEase executives said that about 1/3 "upstream cold" mobile game players have not played NetEase game before. "reverse the cold" mobile games adopt a small payment model that is more close to the people and the ARPU is relatively low, which promotes the payment ratio to be higher than other products, hoping to reduce the payment pressure on players to ensure the long-term and healthy operation of the game.

Aiming at the new popular style of basketball subdivision track, "all-Star Street Ball Party", NetEase became the first game not on Android channel, and some investors asked about the future channel strategy of NetEase game. NetEase executives said that basketball games need to accurately match the group of players, so they are more inclined to maintain their own users and create a long-term operating community of basketball fans. NetEase executives stressed that although the "all-Star Street Ball Party" did not go to the Android app store, Android phone players can download games through the official website and TapTap, so there are a large number of Android players.

At the same time, NetEase management disclosed that NetEase will adopt the parallel R & D strategy of "large DAU products and characteristic vertical products" in the future. NetEase will sum up experience and encourage the two types of products to give full play to their own advantages and continue to create quality products to meet the needs of different user groups.

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