Summary
- NetEase’s ongoing cost-cutting efforts could reportedly reach even more studios in the near future.
- The Chinese gaming giant is currently said to be looking to offload a number of its overseas subsidiaries.
- More than a dozen developers could face closure if NetEase doesn’t find a buyer for them.
Further NetEase Games studios are potentially facing shutdown due to the company’s cost-cutting measures affecting certain non-Chinese subsidiaries, as suggested in a recent report. Meanwhile, the studio behind Marvel Rivals is reportedly considering alternative paths for their future.
On February 20th, NetEase disclosed its combined Q4 2024 financial statement, showing a 1.5% increase in annual revenue but a 2.6% decrease in gross profit. These results fell short of analyst predictions and sparked a Bloomberg article suggesting that NetEase almost abandoned Marvel Rivals and has since embarked on cost-reduction strategies within its international game development branches. The scaling back of NetEase’s foreign gaming operations is rumored to have been led by founder and CEO William Ding, who aims to redirect the company’s resources towards a more concentrated list of titles, possibly due to a desire for restructuring.
As a gaming enthusiast, I’m keeping an eye on the news about potential changes in the industry. Reports suggest that NetEase is actively exploring the possibility of selling off several overseas studios they’ve recently acquired, including some established ones like Quantic Dream, known for developing ‘Heavy Rain’. This could be a significant shift as more studios might follow suit in the near future.
Over a Dozen NetEase Studios Are Reportedly Facing Closure
Approximately a dozen companies could potentially shut down if NetEase can’t find a buyer, according to recent reports. If this happens, many of these companies may not even get a chance to release a single game. Over the past few years, NetEase has been creating new studios and appointing experienced developers known for popular games or series to lead them. For instance, Hiroyuki Kobayashi from Resident Evil fame heads GPTRACK50 Studios, Mac Walters from Mass Effect is in charge of Worlds Untold, and Sean Crooks from Watch Dogs has been put at the helm of Bad Brain Game Studios. However, none of these studios have launched any games yet, and there’s a possibility they never will if NetEase can’t find a buyer for them.
NetEase Games Overseas Studios
- Anchor Point Studios (Spain)
- Bad Brain Game Studios (Canada)
- BulletFarm (California, U.S.)
- Fantastic Pixel Castle (U.S.)
- GPTRACK50 Studios (Japan)
- Grasshopper Manufacture (Japan)
- Jackalyptic (Texas, U.S.)
- Jar of Sparks (Washington, U.S.)
- Paused operations in January 2025
- Liquid Swords (Sweden)
- Partially owned by NetEase
- Underwent layoffs in February 2025
- Nagoshi Studio (Japan)
- Reportedly closing
- NetEase Games Montreal (Canada)
- NetEase Games North America (California, U.S.)
- NetEase Games Korea (South Korea)
- NetEase Games Tokyo (Japan)
- PinCool (Japan)
- Quantic Dream (France)
- Rebel Wolves (Poland)
- Partially owned by NetEase
- Skybox Labs (Canada)
- Spliced (UK)
- Studio Flare (Japan)
- T-Minus Zero Entertainment (Texas, U.S.)
- Worlds Untold (Canada)
- Paused operations in November 2024
As a devoted follower, I’m excited to share that NetEase, like myself, has invested in several international game creators. One of these is Rebel Wolves, renowned for crafting “The Blood of Dawnwalker.” Interestingly, this group shares roots with ex-CD Projekt Red team members. At the moment, there’s no hint that their independent ventures will undergo any changes due to the current restructuring process.
It’s just as uncertain when NetEase plans to stop evaluating its game studios and potentially shut them down for good. This significant gaming corporation has already halted activities at Worlds Untold in November 2024 and Jar of Sparks in January 2025.
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2025-02-22 21:24