Morningstar: NetEase's extended revenue deferral cycle seems to be a positive signal

Morningstar analyst Ivan Su stated in a research report that the extension of NetEase’s revenue deferral cycle is positive. Su said that since NetEase’s deferred revenue is amortized over the estimated average game duration, a longer recognition cycle indicates that users are spending more time on NetEase’s newer games, demonstrating stronger engagement and retention. As more game developers incorporate AI into game development, Su believes that top-tier developers like NetEase can produce games more efficiently, adding that AI is driving game companies to develop better products. (Sina Finance)

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