NetEase CEO Reduces Funding for 12 Games, Halts Marketing Support for Nagoshi’s and Other Japanese Developments

NetEase Faces Backlash Over Unprecedented Layoffs and Funding Cuts

In a controversial move, NetEase has sparked outrage after announcing job cuts at its Western Marvel Rivals studio, despite the game’s impressive achievement of attracting over 40 million players. This decision has raised eyebrows within the gaming community.

A recent report by Bloomberg highlights significant organizational shifts driven by NetEase’s founder and CEO, William Ding. The report reveals that hundreds of positions were eliminated, along with a sudden retraction of foreign investment strategies that the company had aggressively pursued in recent years.

Impact on Global Investments

NetEase’s international strategy has involved substantial investments in various game studios across North America, Europe, and Japan. Notable acquisitions in their portfolio include:

Behaviour Interactive
Suda51’s Grasshopper Manufacture (wholly owned)
Nagoshi Studio (wholly owned)
Quantic Dream (wholly owned)
Rebel Wolves
Skybox Labs (wholly owned)
Jar of Sparks (founded by former Halo and Destiny veteran Jerry Hook)
Jackalyptic Games (founded by former MMO veteran Jack Emmert)
T-Minus Zero (founded by former BioWare and Bethesda veterans)
Worlds Untold (founded by former Mass Effect lead Mac Walters)
Fantastic Pixel Castle (founded by former World of Warcraft veteran Greg Street)

However, recent hardships have hit studios like Jar of Sparks and Worlds Untold, which have already seen their funding slashed. The leaders of these studios are now urgently searching for alternative publishers and resources to continue their work. Additionally, Ouka Studios, known for Visions of Mana, was abruptly shut down after receiving favorable reviews upon launch.

Challenges Facing Japanese Development Teams

Other Japanese studios backed by NetEase, including Nagoshi’s team, are given limited grace periods to conclude existing projects but have been informed that no further funding or marketing support will be available for their ongoing titles. This lack of support raises concerns about the future viability of these projects in the marketplace.

Looking Ahead for Western Studios

Western game developers on NetEase’s roster, like Jackalyptic, which is currently developing a Warhammer MMORPG, are also facing uncertainty. Following a recent trade event where the game was well-received, there is cautious optimism that Jackalyptic can secure a new publishing partnership.

As the situation unfolds, industry observers will be closely monitoring how the strategic decisions made by NetEase impact not only its developers but also the broader gaming landscape.

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