NetEase Q1 2025 Earnings: Gaming Revenue Hits $3.3B as New Titles Drive Growth

Chinese gaming giant NetEase kicked off 2025 with a strong financial performance, reporting a gross profit of ¥18.5 billion ($2.5 billion) for Q1—up nearly 9% year-over-year.

NetEase's total revenue rose 7% year-over-year to ¥28.8 billion ($4 billion), while operating expenses dropped by 14% to ¥8 billion ($1.1 billion).

The standout performer was NetEase’s gaming division, with ¥24 billion ($3.3 billion) in net revenue from games and value-added services, marking a 12% increase YoY and accounting for 83% of the company's total revenue.

“We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles,” said William Ding, CEO of NetEase.

Blockbusters and Breakouts

Among its broad portfolio, several titles stood out:

• Where Winds Meet, the cross-platform action RPG launched in December 2024, surpassed 30 million registered players across mobile, PC, and console by March.

• Eggy Party, Infinite Borders, and Identity V saw notable Q1 gains through targeted events and crossover content.

• Legacy titles like Fantasy Westward Journey Online, Naraka: Bladepoint, and the Justice series continued to perform well with fresh updates.

Blizzard's China Comeback Boosts Momentum

The return of Blizzard titles to the Chinese market via NetEase brought a massive boost. Overwatch recorded a new peak for concurrent players in China, while World of Warcraft and Hearthstone posted “sustained robust momentum,” aided by regional in-game events and local player engagement strategies.

This marks a significant win for NetEase after its 2023 split with Blizzard, signaling that their renewed partnership is already paying dividends.

Strong Start to Q2

Momentum has carried into the second quarter. The April update for Marvel Rivals sent it to the top of Steam’s global sellers list, while the mobile version of Once Human debuted as the #1 download on iOS in over 160 regions.