NetEase Games reportedly cutting non-Chinese studios
pcgamesinsider.bizChinese tech firm NetEase is reportedly pulling back on the games studios it has set up abroad.
Game File reports that the company is trying to sell off some of the developers it has launched. This follows NetEase pulling its support for Jar of Sparks and Worlds Untold, while NetEase-backed Swedish studio Liquid Swords has made layoffs within the last week.
The firm is apparently looking to cut loose the "majority" of its studios outside of China, which could see over 12 foreign developers that are on the chopping board.
There are a few reasons for these cuts, seemingly. The first is that gross profits at NetEase are down 3.3 per cent year-on-year, while budgets for its blockbuster titles are massive and the company doesn't want that kind of outlay for games that aren't sure hits.
NetEase's studios in Europe, America and Japan are apparently being given some time to find new backers. The Chinese firm says that it is being "more cautious" with its strategy moving forward.
"The company continues to invest in our global business and actively recruits and nurtures talent. At the same time, organizational structure changes aimed at improving performance are a necessary part of our ongoing growth," a rep said.
"NetEase Games has a clear understanding of our development trajectory and areas of strength. Many of our strategic decisions are firmly grounded in these core areas. Since the launch of Westward Journey Online in 2001, NetEase has accumulated over 20 years of experience in developing and operating online service games. The success of Marvel Rivals further affirms the value of this experience.
"At the same time, we acknowledge that we are still in the early stages of exploring single-player game development and operations. This makes us more cautious when evaluating such products and assessing the associated risks and opportunities, particularly in today’s fast-changing and highly competitive environment.
"Mr Ding stated on the recent earnings call that NetEase
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