NetEase, Inc. (NASDAQ:NTES) Q3 2022 Earnings Call Transcript

William Ding: Okay. Firstly, Harry Potter will hopefully be launched very soon. As we mentioned in the call earlier, we’re scheduled for launch in 2023. And currently, we will for — we actually have a pretty — plentiful of games to be launched over this market. We have our 3 games in Japan market that include like PCG, racing and And we have a cool games in Europe and North American market, in PPS, PCG and combat — competitive games. So our focus now is basically the Asia Pacific region and European and American — North America market.

Operator: Our next question today will come from Natalie Wu of Haitong International.

Natalie Wu: Let me calculate myself. So my question is regarding the Diablo model. degree that it measurable latest cash revenue and user activeness of Diablo Immortal so that we can better understand the game longevity and contribution. Also, you’ve mentioned before that Diablo Immortal is covered by a separate long-term agreement with Blizzard. It would be great to know exactly how many years does the long-term mean? And will there be uncertainties regarding the future collaboration, especially in overseas market for that title under the backdrop of the latest change with .

William Ding: So Diablo Immortal has actually done a really good job across the world since launch. It’s been online. It’s being launched for almost 6 months now in overseas market. And the China version came about a month later. And so right now, if we look at the revenue contribution, the China part and part, it’s pretty much on par with each other. And going forward, we are going to launch more expansion pack, more content to keep the users engaged. And I think we’re going to continue to balance the needs of both the Chinese users and overseas users. I noticed that the Chinese users, a lot of them are people in their 30s or 40s, it’s mostly and tier cities. For the North American users a lot of them come from the original PC game background. Going forward, we’re going to explore — discover more game users and promote game to a greater range of audience.

Charles Yang: And Natalie, for your second question, we can follow-up off the line.

Operator: This concludes the question-and-answer session. At this time, I would like to turn the conference back over to management for any closing remarks.

Margaret Shi: Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly or TPG Investor Relations. Have a great day. Thank you.

Charles Yang: Thank you, everyone.

William Ding: Thank you.

Operator: The conference has now concluded. We thank you for attending today’s presentation. You may now disconnect your lines.