NetEase to Unload Foreign Businesses

NetEase to Unload Foreign Businesses

24 February 2025 14:31

Chinese gaming giant NetEase is reportedly divesting its overseas holdings, sparking concerns about a broader retreat from international markets. This potential move, coinciding with China’s economic retaliation against U.S. tariffs, could significantly impact the global gaming industry, particularly U.S. companies.

Industry insiders claim that NetEase has been directed to scale back its overseas operations. The recent layoffs at the Seattle-based Marvel Rivals team—despite the game earning $136 million in its launch month—have fueled speculation that the company is losing interest in developing games with international staff. Rising costs, especially for U.S. developers, and the increasing capabilities of Chinese game studios, such as Game Science with Black Myth: Wukong, are believed to be key factors behind this shift.

More:Sentinels Reveals Marvel Rivals Entry

Reports suggest NetEase may fully exit its international investments, either through layoffs or the sale of studios. However, a rapid withdrawal could lead to financial losses rather than profits. NetEase remains publicly traded on the Hong Kong Stock Exchange and NASDAQ, and its position as China’s second-largest gaming company underscores the significance of these developments.

David Kaye, founder of venture capital firm F4 Fund, noted that discussions about China’s gaming firms pulling back were widespread at the recent Dice Summit in Las Vegas, where industry leaders gathered. While NetEase denies the claims, ongoing layoffs and restructuring hint at a major shift in its global strategy, potentially reshaping the gaming landscape.

Tags: NetEase

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NetEase to Unload Foreign Businesses

24 February 2025 14:31

Tags: NetEase

Chinese gaming giant NetEase is reportedly divesting its overseas holdings, sparking concerns about a broader retreat from international markets. This potential move, coinciding with China’s economic retaliation against U.S. tariffs, could significantly impact the global gaming industry, particularly U.S. companies.

Industry insiders claim that NetEase has been directed to scale back its overseas operations. The recent layoffs at the Seattle-based Marvel Rivals team—despite the game earning $136 million in its launch month—have fueled speculation that the company is losing interest in developing games with international staff. Rising costs, especially for U.S. developers, and the increasing capabilities of Chinese game studios, such as Game Science with Black Myth: Wukong, are believed to be key factors behind this shift.

More:Sentinels Reveals Marvel Rivals Entry

Reports suggest NetEase may fully exit its international investments, either through layoffs or the sale of studios. However, a rapid withdrawal could lead to financial losses rather than profits. NetEase remains publicly traded on the Hong Kong Stock Exchange and NASDAQ, and its position as China’s second-largest gaming company underscores the significance of these developments.

David Kaye, founder of venture capital firm F4 Fund, noted that discussions about China’s gaming firms pulling back were widespread at the recent Dice Summit in Las Vegas, where industry leaders gathered. While NetEase denies the claims, ongoing layoffs and restructuring hint at a major shift in its global strategy, potentially reshaping the gaming landscape.

Share:

Sources:

Report mistake   

Submit news   

Related news

View All

NetEase Executive to Step Down

Simon Zhu, President of Global Investments and Partnerships at NetEase, has officially stepped down from his position after more than...

Business

Apr 28, 2025

Blizzard X NetEase Partnership Revived

Activision Blizzard announced the revival of the old partnership between parties. According to the release the renewed agreement will...

Business

Apr 10, 2024

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NetEase, reported its financial results for 2023, showing a surprise increase in its overall performance. The company's total revenue increased...

Business

Mar 06, 2024

NetEase Reveals T-Minus Zero Entertainment

Chinese NetEase announced the founding of T-Minus Entertainment. Established in May 2023 in Austin, Texas, T-Minus Zero Entertainment will be...

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Aug 17, 2023