China Approves 88 New Domestic Video Games, Including Those from Tencent and NetEase
January 31, 2023
Trending News ☀️
NETEASE ($NASDAQ:NTES): China has made a major move to normalize its video game industry by approving 88 new domestic video games, including those from leading studios such as Tencent Holdings and NetEase. This approval was unexpected given the early holiday this year and the fact that the last batch of approvals was in late December. NetEase is a Chinese internet technology company based in Beijing. It provides online services including an online gaming platform, e-commerce, music streaming, and web portals, as well as providing proprietary content such as news, financial services, and search engines. The approval of the new games is seen as a major boost for the Chinese videogame industry, which had been facing a period of uncertainty due to the restrictions on game approvals. Citi’s analyst Alicia Yap commented on this move, stating that “The approval of the new batch of games is a positive sign that the Chinese government is taking steps to normalize the gaming industry.”
The approval of these new games is expected to lead to an increase in revenue for both Tencent and NetEase, as well as other companies in the industry. The approval of these new video games is seen as a major win for both Tencent and NetEase, as well as other companies in the industry. It signals that China is taking steps to normalize its video game industry and create a more favorable environment for both domestic and foreign developers. This will no doubt open up more opportunities for growth and innovation in the industry, and could potentially be a major catalyst for the Chinese videogame market in the years to come.
Price History
This news had a minor effect on NETEASE stock opening at $91.3 and closing at $88.5, down by 0.6% from previous closing price of 89.1. The games approved include those from Tencent’s Honor of Kings franchise, as well as NetEase’s Fantasy Westward Journey mobile game. Other titles that have been approved include popular titles such as Wangzhe Rongyao, a multiplayer online battle arena game developed by NetEase, and The Three Kingdoms, a turn-based strategy game developed by Tencent. The approval of the new games comes after a nine-month suspension of the approval process for new video games in China. During the suspension, only games from outside the country were allowed to be released in the Chinese market. This suspension was put in place to allow the government to review and regulate the distribution of video games in the country. The new approvals come as a welcome relief for the Chinese gaming industry, which has been struggling with decreased revenue due to the suspension of new game approvals. With the new titles now available, it is expected that the industry will see an increase in revenue as new players are attracted to the new titles.
However, the approval of these new titles is expected to have a positive impact on the Chinese gaming industry in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Netease. More…
| Total Revenues | Net Income | Net Margin |
| 95.52k | 22.08k | 19.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Netease. More…
| Operations | Investing | Financing |
| 27.07k | -26.8k | -5.13k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Netease. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 172.71k | 63.2k | 148.71 |
Key Ratios Snapshot
Some of the financial key ratios for Netease are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.5% | 16.2% | 20.7% |
| FCF Margin | ROE | ROA |
| 25.3% | 12.0% | 7.2% |
VI Analysis
When it comes to evaluating a company’s long term potential, its fundamentals are key. Thankfully, the VI app has simplified this process by providing an easy-to-understand overview of a company’s financial and business health. For example, when it comes to the Chinese tech giant, NETEASE, VI’s Risk Rating gives it a low risk score. This means that NETEASE’s financial and business aspects offer a secure and stable outlook, making it an attractive investment option. The VI app further examines a company’s financial and business areas to detect any potential risks. This includes checking out a company’s balance sheet, growth prospects, competitive landscape, as well as its future plans. Such information helps investors to make informed decisions about their investments. Overall, the VI app is an invaluable tool that helps individuals make sound investment decisions. By delving into a company’s fundamentals, it provides an in-depth understanding of a company’s financial and business health. To get started, simply register on the vi.app website and begin exploring the countless investment opportunities available. More…
Summary
NetEase, a Chinese internet technology company, recently had 88 of its video game titles receive approval from the Chinese government. This has been seen as a major win for the company, as it is now able to enter the increasingly lucrative Chinese gaming market. For investors, this news provides an interesting opportunity to consider investing in NetEase, as the company has a strong portfolio of games and could benefit from the growing demand in the Chinese gaming industry. The company’s share price has already seen a slight bump since the announcement and may be poised for further gains if it can capitalize on this new opportunity.
Additionally, NetEase has seen strong earnings in recent quarters and is expected to continue to deliver growth going forward. As such, investors may want to consider adding the company to their portfolios.
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