Over A Dozen NetEase Studios Are Reportedly At Risk
More than a dozen gaming studios under the wing of China’s NetEase may be facing closure if new funding partners are not secured. This development follows the recent layoffs in NetEase’s Marvel Rivals developer’s US office, which now appears to be just the start of a broader reshuffle of NetEase’s international operations.
NetEase has been notably proactive in recent years, establishing and financing international studios often helmed by seasoned industry professionals. In 2023 alone, NetEase introduced several studios, including Bad Brain Game Studios in Canada, PinCool in Tokyo led by former Dragon Quest producer Ryutaro Ichimura, and AnchorPoint Studios led by Paul Ehreth, the lead designer of Control. Additionally, Worlds Untold was joined by Mac Walters, best known as the lead writer on Mass Effect 2 and 3, among others. This ambitious expansion seems to be stalling, possibly culminating in the closure of some newly established studios.
According to sources with insights into NetEase’s strategic operations, the company is reportedly planning to withdraw from a majority of its overseas ventures. This potential divestment could mean the shutdown of multiple game development houses if they fail to secure alternative funding once their existing supports are removed.
The dismissal of several members of the Marvel Rivals’ team in Seattle made headlines, coming on the heels of the game’s success announcement. Furthermore, other studios, including Worlds Untold and Jar of Sparks, have been feeling the effects of NetEase’s operational realignment since November of the previous year. These studios had to halt activities and actively seek new financial backers to sustain future endeavors.
The gaming industry is notoriously competitive, and securing continuous investment remains a critical challenge, especially for recently formed entities. The potential closure or restructuring of these studios underscores the volatile nature of global gaming markets and the strategic recalibrations companies like NetEase must undertake in balancing growth aspirations with sustainable operations.
This situation is a significant reshuffle in NetEase’s strategy, reflecting a potentially cautious approach in its international dealings. As NetEase continues to reassess its global footprint, the future of multiple studios and the innovative titles they aimed to deliver hangs in the balance.
While the ultimate fate of these studios remains uncertain, the unfolding scenario emphasizes the need for strategic adaptability and robust financial planning in the dynamic world of game development.
