NetEase is implementing a strategic shift to prioritize profitability, which includes job reductions and a re-evaluation of its game portfolio and overseas expansion. This strategic adjustment follows earlier reports of job cuts related to the 'underperforming' mobile game Hyper Front in Shenzhen, which was launched on August 30.
The company's CEO, William Ding, is reportedly 'hitting the brakes' on certain expansion efforts to focus on core strengths and efficiency. This move aims to streamline operations and optimize resource allocation.
While these actions may lead to a more streamlined operation and improved margins, they also signal a more cautious approach to diversification and global reach. The emphasis is now on delivering groundbreaking gaming experiences and enhancing existing franchises through design, storytelling, and immersive content, rather than broad expansion.
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