NetEase is preparing to set up a third overseas game studio

NetEase will independently fund the establishment of a game studio in Japan, Nagoshi Studio. The studio will be run by Nagoshi Toshihiro from renowned game developer Sega, who will primarily develop console games in the future.

Minoru Nagoshi is the chief producer of the "Like Dragon" series of games, and most of the other members of the Nagoshi Studios have also participated in the production of the "Like Dragon" series, which has sold more than 10 million copies worldwide. In an interview with Japanese game media "Fami Tong", Minoru Nagoshi said that the focus of the new studio will still be in Japan for the time being, and believes that NetEase will give the new studio full creative freedom.

This is not the first time That NetEase has opened a game studio overseas. In 2019, NetEase opened its first overseas game studio in Montreal, Canada, and in 2020, it opened a Sakura studio in Japan to develop console games.

NetEase's net revenue from online gaming services in the third quarter was RMB15.9 billion, up 15% year-on-year. According to Sensor Tower, the mobile game "Harry Potter: Magical Awakening" released in September has exceeded $228 million in revenue in overseas regions within two months of its launch.

Hu Zhipeng, vice president of NetEase and an executive of the video game business, told the media in August last year that the company's goal is to increase the proportion of overseas game revenue from 10% to 50%.

According to Sensor Tower, 42 Chinese mobile games generated more than $100 million in overseas markets last year. China's top 30 mobile game products in terms of overseas revenue reached $11.5 billion in total revenue on the App Store and Google Play, an increase of 24% over the previous year. NetEase's "Wilderness Action", "The Fifth Personality" and "After Tomorrow" three games entered this list, surpassing Tencent to become the game manufacturer with the largest number of games on the list.

In the case of the slowdown in the release of domestic game versions, going to sea has become a must. A total of 755 game titles were released in China last year, almost half of the previous year. The domestic game version number has been suspended for nearly 6 months. Tencent, NetEase, Mihayou and other game manufacturers all set up game studios overseas last year. Tencent, the company with the most investment in the game field last year, wholly acquired 5 overseas game companies, and Tencent Overseas has controlled more than 10 game studios.

At the 2021 China Game Industry Annual Conference, Yang Fang, deputy director of the Publishing Bureau of the Central Propaganda Department, said that "firmly step up the pace of going out, launch more excellent works, and expand overseas markets", and encouraged game companies to "promote the quality of games going to sea... Use excellent works to expand overseas markets and spread Chinese culture and values." (Intern Zhang Ziqing)