NetEase reported gaming revenue exceeding 90 billion yuan ($12.5 billion) for 2025, driven by both legacy franchises and new releases as the company accelerates AI integration and global expansion, according to its fourth-quarter earnings released on February 11.

The company's gaming and related value-added services generated 92.1 billion yuan for the full year, up 10.2% year-on-year, with online games accounting for 97.3% of the segment. Fourth-quarter revenue reached 22 billion yuan, rising 3.4% from the previous year. Key contributors included established titles such as Fantasy Westward Journey and Identity V, alongside newly launched Justice Mobile and Marvel Rivals.

NetEase shares have gained traction as investors assess the company's ability to monetize its expanding game portfolio amid intensifying competition in China's gaming sector. The results underscore how traditional developers are leveraging AI tools to improve production efficiency while expanding internationally to offset domestic market saturation.

AI Integration Drives Production Efficiency

NetEase disclosed that years of AI investment have yielded comprehensive applications across game development, from art design and planning to programming, animation, and quality assurance. The company reported efficiency improvements of up to 300% in certain production stages.

Multiple titles now feature native AI-driven gameplay mechanics. Justice Mobile incorporates intelligent non-player characters, while Naraka: Bladepoint Mobile includes AI teammates. Eggy Party has integrated model-based AI-generated content capabilities. These implementations demonstrate NetEase's strategy of converting technological investment into player-facing features rather than limiting AI to backend processes.

Justice Mobile Leads International Expansion

Justice Mobile emerged as NetEase's most successful overseas martial arts title to date, surpassing 80 million users globally. The game peaked at number two on Steam's global best-seller chart following its international launch and topped the iOS China game revenue chart during its first anniversary celebration.

The title achieved record daily active users and revenue during its fourth-quarter "Unseen Mountain" update and anniversary event. Spring Festival activities further pushed user engagement and revenue to new highs, validating NetEase's approach of combining single-player narrative exploration with multiplayer social features.

Marvel Rivals climbed to second place on Steam's global charts during its Season 6 update, topping download rankings in the United States and Canada. The hero shooter has maintained stable performance metrics over a year after launch, with the recent Deadpool character introduction and three-role system innovation drawing player interest.

Justice Mobile for mobile devices officially launched in overseas markets, topping download charts across multiple Asian regions. The expansion reflects NetEase's broader push into international markets following earlier successes with titles like Knives Out in Japan.

Legacy Franchises Hit Revenue Records

Fantasy Westward Journey for PC introduced a "free-play server" model that generated record quarterly and annual revenue in 2025. The mobile version launched "light server" and "space-time server" options, also achieving historic revenue highs. Tianxia Online recorded peak concurrent users not seen in nearly a decade, while player payment rates reached new levels.

The free-play server model focused on three elements: restoring classic gameplay while offering differentiated experiences, restructuring the economic system while preserving free trading, and comprehensively optimizing progression. Management indicated this design philosophy could extend to additional legacy properties.

Westward Journey Online Mobile launched a "free-trading server" in the fourth quarter, driving player participation to record levels. Rate of the Land introduced a "casual version" that sustained daily active user growth. Eggy Party achieved new highs in average player session duration.

Blizzard Entertainment titles distributed by NetEase in China generated record annual revenue, with StarCraft II reaching domestic daily active user peaks.

Pipeline Targets Mid-2026 Releases

Joker Studio's Where Winds Meet is conducting technical tests across multiple markets and is scheduled for third-quarter 2026 launch. A February 5 test generated over 10 million views for preview content on Bilibili. Management reported that initial feedback validated the game's quality positioning and that development remains on schedule.

Infinity Nikki completed closed testing in January with retention data and player feedback meeting expectations. The title targets simultaneous global release across PC, mobile, and console platforms. Project Mugen continues steady development.

Star Atlas has conducted initial PC testing and is expected to launch cross-platform mobile and PC versions within 2026.

NetEase confirmed two auto-chess titles in development, with one receiving regulatory approval under the title Demon Chess. Management cited the genre's mature mechanics and potential for differentiation through Chinese mythological themes and aesthetic standards.

Management Addresses AI Competition Concerns

Executives downplayed concerns about generative AI tools like Google's Genie disrupting the gaming industry, arguing that while production barriers may lower, the threshold for commercial success is rising. Management emphasized that integrating AI with complex numerical systems, long-term economic frameworks, and deep social ecosystems requires game design expertise and operational experience that new entrants lack.

The company distinguished between AI's potential to reduce production costs and the increasing scarcity of soft skills such as gameplay judgment, user insight, and aesthetic taste. NetEase positioned world models as potentially enabling entirely new entertainment categories rather than replacing traditional games, noting current limitations including high latency and costs.

NetEase stated it is focusing on domain-specific models trained on proprietary game data rather than general-purpose large language models. The company cited three competitive advantages: vertical models that improve internal production efficiency, proven ability to convert AI features into player engagement and monetization, and cross-disciplinary teams combining algorithm expertise with game design knowledge.