NetEase raises fears it is unloading its overseas game properties, hurting U.S. gaming
1 min read
Summary
NetEase has acquired several overseas gaming studios, including Quantic Dream, Devolver Digital, and Bulletin Interactive, as part of its global expansion strategy.
However, it is now divesting these holdings, which includes laying off staff, due to the high costs of US developers and the success of China’s Game Science’s Black Myth: Wukong, which has made tens of millions of dollars.
China’s biggest gaming company, Tencent, which owns Riot Games, Epic Games, and has a market value of $599.7bn, is not pulling back on its overseas interests.
However, it is laying off staff, such as cancelling a Splash Damage game and restructuring Sumo Digital.
NetEase’s trailing 12 months of gaming revenue is $11.7bn and it is the world’s fifth-biggest game company by revenue.