NetEase Games, a prominent Chinese gaming company and a subsidiary of NetEase Inc. (NTES), is facing a serious corruption scandal. Reports from Bloomberg Law have revealed that General Manager Xiang Lang, along with esports lead Jin Yuchen and several other employees, have been arrested on charges of bribery and money laundering.
While NetEase has yet to issue an official statement, an internal memo confirmed that nine employees were dismissed due to their alleged involvement in the bribery scheme. The investigation reportedly involves 28 suppliers to the company, with an estimated value of one billion yuan (approximately $139.3 million). The names of those involved have reportedly been removed from the company’s internal systems, and staff have reported that their computer screensavers were changed to messages emphasizing the company’s compliance protocols.
This is not the first instance of anti-corruption measures at NetEase. According to Eurogamer, this marks the second major internal inquiry since September 2023. While the company has confirmed police are investigating the corruption allegations, further details regarding the investigation remain undisclosed.
The news of this scandal comes at a time when NetEase is already facing challenges. The company recently closed Ouka Studios, the developer of Visions of Mana, and SkyBox Labs, another subsidiary, has been reported to have cut its workforce due to “unprecedented challenges.”
This scandal highlights the growing concern around corruption in the Chinese gaming industry and the potential impact on business operations and reputation. It remains to be seen how this investigation will unfold and what the ultimate consequences will be for NetEase Games.
