Chinese Internet and gaming giant NetEase's CEO Ding Lei has slammed the Chinese Android channel for taking 50 percent of game apps' revenue, saying it's the highest in the world.
Ding made the comments during a conference call Thursday after NetEase's latest quarterly earnings report, saying NetEase gave 30 percent of its revenue of some of its games, including "Fantasy West", to Android platforms.
He also said the 50 percent share ratio was unreasonable because it was 20 percent more expensive than Apple's App Store's share.
He said that he hoped that the Chinese Android market could be in line with the international standard of 30% share of the game revenue in the future and that the current 50% share of the Chinese Android channel's was unjustified and very unfavorable to the ecology.
NetEase hopes that the whole industry can work together to create a healthy ecosystem, he also said.
The iOS channel contributes up to 50 percent of NetEase's game revenue, and few game content providers in China can reach such a high percentage; the Android channel contributes one-third of the revenue, and the company's official channel contributes the rest, he said.
NetEase reported fourth-quarter net revenue of RMB 19.8 billion yuan ($3 billion), up 25.6 percent year-on-year. Net income from continuing operations attributable to NetEase shareholders was RMB 975.7 million yuan ($149.5 million).
Throughout 2020, NetEase's net revenue is RMB 73,667.1 million ($11,290.0 million), compared to RMB 59,241.1 million in 2019. Net income from continuing operations attributable to NetEase's shareholders was RMB 12,062.8 million ($1,848.7 million) compared to RMB 13,275.0 million in 2019.
Huawei removes Tencent games: a game where both sides have big stakes
(Source: Unsplash)
