This week, two high-ranking officials from NetEase Games, known for popular free-to-play and mobile games such as Marvel Rivals and the soon-to-release Destiny: Rising, were apprehended amid allegations of corruption and bribery.
Reports from Bloomberg Law and the Chinese news source Leifeng, along with insights from Game Developer, indicate that the two executives and seven additional employees were detained following an internal investigation by NetEase. While specifics of the case remain unconfirmed pending the ongoing investigation, Leifeng reported that it involves the procurement of traffic by employees.
The investigation centers around a contract valued at approximately 2 billion yuan, roughly $278.5 million, and included involvement from 27 other vendors. Yicai Global has stated that those firms involved have been “blacklisted.”
Impacted by the allegations are Xiang Lang, the former head of esports, and Jin Yuchen, the previous marketing chief, both of whom have left the company. There are mixed reports about whether any additional employees were implicated.
NetEase Games has long collaborated with various Western companies to produce mobile adaptations and local versions of major releases. They maintained a significant partnership with Blizzard Entertainment, leading to titles like Diablo Immortal and localized releases of Overwatch, World of Warcraft, and others prior to the expiration of their contract in 2023. This agreement was recently renewed in April 2024. NetEase has also partnered with Marvel Games to develop the upcoming hero shooter Marvel Rivals, set to launch in December.
Additionally, NetEase is growing its presence in the U.S. market by establishing a new studio in Austin, Texas, named T-Minus Zero Entertainment, which is staffed by veterans from Bethesda and BioWare.