Tencent and NetEase are cutting back on investments in Japanese video game studios because of a lack of major successes.
As reported by Bloomberg, NetEase began laying off developers from Ouka Studio earlier this spring, leaving only a few to finish up their final games before closing down the studio.
has already been set in motion.
Tencent also got the rights to publish the mobile version of Bandai Namco’s Blue Protocol, but Bandai Namco recently announced it will end support for the game by 2025 and cancel its international release through Amazon Games.
It seems like Tencent and Japanese developers have different goals. While local developers prefer smaller, less risky projects, Tencent aims for big global hits. This difference has led to higher expectations from Tencent when funding these projects.
Fans just want their favorite games to succeed.
NetEase has also invested in Nagoshi Studio, run by Toshihiro Nagoshi, and acquired Grasshopper Manufacture, known for No More Heroes. Meanwhile, Tencent holds a 5% stake in GameScience, which released the hit game Black Myth: Wukong.
