The gaming industry has slowly been taken over by new models like 'Battle Royale style experiences' as well as the free-to-play multiplayer model.
Sure, players like Microsoft are still relying on very expensive, cinematic experiences like this week's Starfield release.
But those feel extremely top-heavy compared to how much market share freemium wunderkind NetEase ($NTES) has been able to pull in.
In just a year after we began covering the stock, this gaming studio has 3 worldwide top games and potentially has just as many on the way.
NetEase is absolutely conquering gaming with titles like Eggy Party, Justice Mobile, and Naraka: Bladepoint.
The revenue and user growth for these games have been absolutely staggering. And NetEase is only accelerating the development of more of these highly addictive, revenue-saturated titles.
All of this started culminating in July when one of NetEase's older battle royale titles: Naraka: Bladepoint became free-to-play. That game basically doubled its player base overnight and spent several weeks in the top 5 slots of every major game marketplace worldwide.
Meanwhile, the stock is essentially flat after NTES had a weaker Q2 earnings report. The primary driver for that weakness was two massive game launches that happened in June -- basically delaying the fireworks until we get more robust revenue data in their Q3 filing.
But, preliminary install numbers and planned global launches for two of their popular titles are enough for us to boost our price target now and powerslide into holiday-season gains.
The revenue numbers for this new gaming model are borderline baffling, so let's unpack these as best we can to give you a sense of how huge NetEase is about to be in the global scene 👇