Chinese tech giant ByteDance, the parent company of popular app TikTok, is making significant changes to its gaming ventures, resulting in job cuts and a reshuffling of priorities. The company announced that it will wind down its video game studio unit, Nuverse, in order to focus on its core businesses.
While Nuverse will still retain some operations, development on unreleased games will be halted and existing titles, such as “Crystal of Atlan” and “Earth: Revival,” will be sold off. Additionally, ByteDance is actively seeking a buyer for Moonton, a video game studio it acquired in 2021. Moonton is best known for its successful game “Mobile Legends: Bang Bang.”
This strategic decision to restructure the gaming business comes as ByteDance aims to streamline its operations and cut costs. The company is also downsizing its virtual reality unit, Pico, as part of its overall plan to refocus on core areas of growth.
ByteDance had previously invested heavily in the gaming industry but failed to achieve significant success in the highly competitive market. It struggled to make progress against industry leaders Tencent and NetEase, resulting in the decision to scale back its gaming division.
It is worth noting that gaming accounted for a relatively small portion of ByteDance’s overall business, estimated to be around 1% or less of its total revenue. With this in mind, the company has opted to redirect its resources towards other promising ventures.
The broader gaming industry in China is also facing challenges, with mobile gaming revenue declining and user acquisition costs skyrocketing. The market, however, remains the largest in the world, with approximately 710.3 million gamers and a staggering $47.7 billion in revenue generated from video game software and services.
ByteDance’s decision to cut back on its gaming ventures reflects the company’s commitment to refocusing its efforts on areas of growth and profitability. With the ever-changing landscape of the tech industry, it remains to be seen how ByteDance will navigate this new direction and capitalize on other potential opportunities in the market.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”