In a shocking development, two prominent executives at NetEase Games, a leading developer of mobile and free-to-play games, have been arrested in China on charges of bribery and corruption. The arrests, which were confirmed by Bloomberg Law and Chinese news outlet Leifeng, have sent shockwaves through the gaming industry.
According to reports, the investigation stemmed from an internal inquiry by NetEase, which uncovered allegations of employees engaging in the illicit practice of purchasing traffic. This practice, known as “fake traffic” generation, involves artificially inflating game downloads and engagement numbers, ultimately defrauding both users and companies. The investigation revealed that the alleged scheme involved a contract value of approximately 2 billion yuan, which translates to roughly $278,506,000.
The arrested executives, identified as Xiang Lang, the former esports chief, and Jin Yuchen, the former head of marketing, are no longer employed by NetEase. Seven additional employees have also been detained as part of the investigation, highlighting the extent of the alleged corruption within the company.
This scandal has cast a shadow on NetEase’s reputation and raises serious concerns about the company’s future partnerships with Western companies. NetEase has a long history of collaborating with international studios, notably with Blizzard Entertainment on titles like Diablo Immortal, Overwatch, and World of Warcraft. However, the recent arrest of key executives suggests that the company may be facing significant challenges in maintaining its global partnerships.
While the full extent of the alleged corruption remains under investigation, the arrests serve as a stark reminder of the persistent challenges of corruption within the Chinese gaming industry. As the global gaming market continues to expand, ensuring ethical and transparent practices will be crucial for maintaining trust and stability in the industry.
