NetEase Shares Surge on Positive Outlook for New Game Release

Stock News
8 hours ago

NetEase Inc (HKG: 09999) shares have risen more than 3% in today's trading session. At the time of writing, the stock is up 3.2%, trading at HK$193.3 with a turnover of HK$707 million.

The upward movement follows the official announcement that the public test for the highly anticipated new game "Forgotten Sea" from NetEase's Joker Studio is scheduled for July. This open-world RPG adventure, developed over five years, features cross-platform compatibility, a distinctive puppet aesthetic, and integrates core gameplay elements such as nautical exploration, dual-mode combat, and roguelike mechanics.

According to the company's official website, pre-registrations for the game across all platforms have exceeded 29.96 million.

Analysts have expressed optimism regarding the game's potential financial impact. Drawing comparisons to other successful titles with similar styles or gameplay, such as "Identity V", "Wuthering Waves", and "Different Ring", projections suggest "Forgotten Sea" could generate approximately 5 billion yuan in revenue within its first 12 months.

Given its multi-platform release, with the PC version expected to have higher profit margins, the game is anticipated to boost the company's overall profitability. Under a projected profit margin assumption of 35% to 45%, the new title could contribute an incremental profit of 1.75 to 2.25 billion yuan. This represents an estimated 4.7% to 6% of the company's projected Non-GAAP profit for 2025.

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