adminNetEase gaming revenue increased in the first quarter of 2026, supported by online game operations and sales from self-developed titles. The company reported growth in both its games segment and total revenue, while continuing to expand selected releases in international markets.
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NetEase gaming revenue reaches $3.7 billion
For Q1, NetEase recorded gaming revenue of RMB 25.7 billion, equivalent to $3.7 billion, a 6.9% increase from the same period a year earlier. Overall company revenue rose 6.1% to RMB 30.6 billion, or $4.4 billion.
Online game operations accounted for an estimated 97.5% of the games segment’s net revenue. That share was unchanged from the corresponding quarter of the previous year. The figures describe revenue, not profit, so they do not by themselves show how costs or margins changed.
For readers comparing quarterly results, it is useful to distinguish the games segment from total company revenue. The first figure focuses on games, while the overall figure includes the company’s broader business activities.
Self-developed games contribute to growth
NetEase reported higher sales from several self-developed games: Fantasy Westward Journey, Where Winds Meet, Identity V, Eggy Party and Sword of Justice. The company attributed their performance to regular content updates and what it described as gameplay innovation.
Ongoing updates can give existing players new content to explore and provide reasons to return. When assessing such announcements, it is helpful to separate a company’s explanation of growth drivers from the reported financial figures themselves.
International launches and development plans
NetEase said it had expanded global launches for Where Winds Meet and Marvel Rivals. It also continued operating Blizzard titles in China, with frequent localized content. CEO and director William Ding said the company delivered a solid quarter across its established games portfolio and made steady progress on new titles.
Ding also said recent global launches had shown appeal across different markets, supporting the company’s international expansion strategy. Looking ahead, he said NetEase would continue developing its technological capabilities and innovating in content and game development, drawing on its operating experience to reach a broader global audience.
Nagoshi Studio funding decision
In March, NetEase confirmed it would stop funding Nagoshi Studio, the developer of Gang of Dragon. The company did not provide a reason for the decision or details about the exit terms. Bloomberg, citing sources, reported that funding was withdrawn after NetEase determined that at least ¥7 billion ($44.4 million) more would be needed to complete the studio’s debut title.
This development is separate from the quarterly revenue figures, but it provides additional context about the company’s choices around game development funding. The reported information does not specify what will happen next with the project.
What the results show
NetEase gaming revenue rose 6.9% to $3.7 billion in Q1 2026, with online operations making up 97.5% of games segment net revenue. The company also highlighted sales from self-developed titles and continued international launches. Future results will show whether these releases and ongoing content updates sustain growth.
