NetEase: Gaming Pressure Mounts as PC Sector Thrives

Despite the strong performance of the PC gaming sector, NetEase (NASDAQ:NTES) has been facing headwinds in its gaming business. In the third quarter of 2024, the company's gaming revenues grew by nearly 12% year-over-year, but this growth was not enough to offset the decline in other segments. As a result, NetEase's total net revenues and net income attributable to shareholders both shrank compared to the same period last year. In this article, we will analyze the factors contributing to NetEase's gaming business decline and discuss the company's strategic initiatives to address these challenges.