NetEase exec steps down after 12 years of leadership

Simon Zhu, president of global investments and partnerships at NetEase, has announced his departure from the company.

Zhu, who has worked at the Chinese gaming firm for 12 years, shared this news in a LinkedIn post on April 25, 2025.

During his time at NetEase, he led global first-party studios and invested in notable firms such as Bungie, Niantic, Devolver, and Second Dinner.

Ken Li, who previously managed NetEase’s partnership with Blizzard Entertainment, will take over Zhu’s responsibilities.

NetEase emphasized that these personnel changes do not indicate a shift in its global strategy.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Gaming industry’s structural shift toward profitability over expansion

NetEase’s executive departures reflect a broader industry-wide pattern of prioritizing profitability following years of aggressive expansion.

The gaming industry faced significant contractions with over 10,500 jobs lost in 2023 and an additional 14,600 in 2024, affecting major companies including EA, Microsoft, and Unity Technologies 1.

This sector-wide correction follows an unsustainable growth period, with the industry experiencing a 4% drop in software revenue in 2023—its first setback since 2009 2.

Under CEO William Ding’s directive, NetEase has shut down or halted work at multiple international studios it had opened just years earlier, including Japan’s Ouka, Canada’s Worlds Untold, and Jar of Sparks in the US, mirroring similar moves by Western gaming companies.

The company’s strategic focus on fewer, more profitable titles aligns with industry data showing that the top 10% of gamers account for 65% of industry revenue, making targeted development increasingly attractive for publishers 2.

2️⃣ Leadership consolidation signals strategic pivot in NetEase’s global ambitions

The departure of Simon Zhu, who led NetEase’s international investments and partnerships for 12 years, marks a significant shift in the company’s global strategy.

Despite previously setting ambitious goals to increase international revenue to 50%, recent actions suggest NetEase is retreating from global expansion to refocus on its core domestic market, where it remains the second-largest gaming company in China 3, 4.