Sina Science and technology news November 17 evening news, NetEase announced the third quarter of 2022 financial results. Net income of NetEase was RMB24.4 billion in Q3, and net income attributable to shareholders of the company was RMB6.7 billion; The scale of R&D investment was 4 billion yuan, and the intensity of R&D investment reached 16%, increasing for three consecutive quarters. CEO Ding Lei, CFO Yang Zhaowang and other senior executives attended the financial reporting conference and answered questions from investors on the quarterly report and business development.
In response to questions from investors about Activision Blizzard's announcement to suspend the agency cooperation, Ding Lei said that NetEase hopes to continue to act as the agency for Blizzard games, and has made a lot of efforts to do so. But in the past period of time, the whole negotiation process is far more difficult than NetEase expected. Activision Blizzard's demands are unacceptable for critical terms that relate to sustainable operations and the core interests of the Chinese market and our players.
"We read the news this morning that Activision Blizzard has terminated their partnership. We regret and have to abide by the decision." Ding Lei admitted that for Chinese players, we will do our best to deal with the aftermath and serve players until the last minute to protect their consumer rights and information security.
On the day of NetEase's third quarter financial results release, Activision Blizzard issued a unilateral statement in advance, stating that the current license agreement with NetEase will expire on January 23, 2023, and will suspend most of Blizzard's game services in mainland China, including World of Warcraft, Hearthstone, Overwatch, StarCraft, and Warcraft III: Reset Diablo III and Heroes of the Storm.
According to the Q3 financial statement of NetEase, the Chinese service agency authorization between NetEase and Blizzard will expire in January 2023 and will not be renewed. Blizzard's games contributed a low single digit percentage to NetEase's net revenue and net income in 2021 and the first nine months of 2022. The expiration of the authorization will not have a material impact on NetEase's financial results. Diablo: Immortal's co-development and release is covered by another long-term deal.
In response to players' concerns about refund fees, game data, virtual property, game rights and other related issues, NetEase stated in a Letter to Blizzard Game Players that it would try its best to negotiate with Activision Blizzard to protect the interests of Chinese players to the greatest extent. At the same time, NetEase will work out a plan as soon as possible to start relevant work such as refund as soon as possible, and will keep players informed of the progress of relevant work through official channels such as the official account of "Blizzard Game Service Center".
"Together with Activision Blizzard, we will make sure that 'business belongs to business, game belongs to game', pay attention to the voice of players, value what players have done for the game, and properly protect their game assets and memories." 'We are deeply sorry for the inconvenience caused to everyone,' NetEase said. If possible, we hope that Blizzard's absence will be temporary. After stopping, we will continue to stick to it in our own way and never give up. Believe that those who meet can always meet again.