Tencent Holdings and NetEase are reconsidering or scaling back many of their investments in Japanese studios, after years of spending yielded few hit games and the Chinese market staged a comeback.
NetEase has cut all but a handful of jobs at its Ouka studio in Tokyo, according to people familiar with the matter. It intends to shut the Shibuya outfit, which was opened with much fanfare in 2020 and hired veterans from big names such as Capcom and Bandai Namco Holdings. The few that remain will oversee the rollout of its final games, before the studio winds down.
NetEase’s far larger rival, Tencent, is also reconsidering the pace and scale of investments in the country, the people said, asking not to be named as the details aren’t public. It has already backed off from at least several funding commitments for new games, the people said.
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