"Unrestricted Machine" and other performances did not meet expectations, and Kingsoft Software's gaming revenue declined by 28%.

Ask AI · After Lei Jun stepped down as a director of Kingsoft Cloud, how can he focus on the gaming business to break through growth?

Recently, the news of Lei Jun stepping down as a director of Kingsoft Cloud has put Kingsoft Software in the spotlight.

On March 25, Kingsoft Cloud announced that Lei Jun has resigned as a non-executive director due to other work commitments, effective March 25, 2026. Additionally, after stepping down, Lei Jun will no longer serve as chairman, chairman of the nomination committee, or a member of the remuneration committee of the board.

However, Lei Jun remains a non-executive director and the chairman of Kingsoft Software.

As one of the earliest internet software companies in China, Kingsoft Software was founded in 1988, primarily involved in Kingsoft Office, Xishanju, Kingsoft Game, Kingsoft Cloud, and other businesses. Kingsoft Cloud is an independent cloud service provider under Kingsoft Software, focusing on full-stack cloud services + AI computing. In May 2020, Kingsoft Cloud was listed on NASDAQ in the United States, and in December 2022, it completed a dual primary listing on the main board of the Hong Kong Stock Exchange through an introduction.

On March 25, Kingsoft Software officially released its Q4 and full-year performance report for 2025.

The financial report shows that as of December 31, 2025, Kingsoft Software achieved total revenue of 9.683 billion yuan for the fiscal year 2025, a decrease of 6% year-on-year. The profit attributable to the parent company was 2.004 billion yuan, an increase of 29% year-on-year; basic earnings per share were 1.46 yuan, with a proposed final dividend of 0.13 Hong Kong dollars per share.

Among them, the office software and service business continued to grow steadily, achieving revenue of 5.929 billion yuan for the year, a year-on-year increase of 16%, accounting for 61% of revenue; the online gaming and other businesses had revenue of 3.754 billion yuan for the year, a year-on-year decrease of 28%, accounting for 39% of revenue.

Regarding the decline in gaming business performance, the financial report pointed out that it was primarily affected by the high base from the same period last year and the decline in existing game revenues.

The classic Swordplay series online and mobile game “Swordplay World: Origins” continues to iterate on content and versions, maintaining stable operations both domestically and internationally.

The social deduction game “Duck, Duck, Goose,” co-published by Huya and Kingsoft Game, officially launched in January 2026, with over 5 million new users on the first day and over 30 million cumulative new users since launch. For most of the past two months, it has topped the iOS free chart, driven by word-of-mouth to generate organic traffic and penetrate broader social circles. Currently, “Duck, Duck, Goose” is still in the early stages of commercialization and will continue to optimize retention and payment systems in the future.

However, the games launched in 2025, such as “Swordplay: Zero” and “Limitless Mech,” have performed relatively flat. Public information shows that “Swordplay: Zero” is a 3D MMO mobile game in the classic Swordplay series by Xishanju, designed for fans of classic MMOs.

The sci-fi mech game “Limitless Mech” has also seen a significant drop in online players on the Steam platform since its launch, highlighting the challenges of incubating new products. Xishanju has invested years of effort into “Limitless Mech,” continuously tackling areas such as engine fundamentals, 3D modeling, AI animation, and real-time rendering, hoping to break through and go global with this domestic sci-fi mech game.

At the same time, the financial report also disclosed the progress of new product reserves. Two casual games from the “Angry Birds” series have also obtained approval numbers and are expected to launch in mainland China in 2026, further enriching the casual product matrix. The healing-themed rural life simulation game “Star Sand Island” will begin early access in February 2026, and will actively optimize the product based on player feedback, laying the foundation for the official release in the second half of the year.

Lei Jun stated in the financial report, “The online gaming business will continue to focus on developing high-quality content and global distribution, continuously strengthening the vitality of classic IPs while actively promoting the growth of new categories to achieve sustainable development.”

Written by: Wang Yanling, Nandu · Bay Financial Society