NetEase Games, one of the largest gaming developers in China, is reportedly planning to shutter its Tokyo-based subsidiary, Ouka Studios.
According to Bloomberg, Ouka Studios, best known for developing the game Visions of Mana, has reportedly undergone significant staff reductions, with sources indicating that "all but a handful of jobs" have been cut.
The remaining employees are expected to oversee the final rollout of the studio's projects before it ultimately closes its doors.
Ouka Studios' Quiet Downsize
The news comes as NetEase Inc (NASDAQ:NTES), which established Ouka Studios in 2020 with a mission to create console games, appears to be making strategic adjustments in response to changing market conditions.
Reporter Takashi Mochizuki, who broke the story, further elaborated on social media that these staff cuts had been taking place "since this spring at least."
In response to inquiries about the reported closure, NetEase remained tight-lipped: "We have nothing to announce."
However, the company added: "In supporting studios outside China, we craft our strategy based on our goal of providing better gaming experiences to local and global players."
Fans spoke out on the news via social media:
Never seen that happen before they just released the game so absurd for them to do that
— MikuXLegend (@mikutweets4ever) August 30, 2024
Navigating Market Conditions
NetEase's decision to potentially close Ouka Studios aligns with a broader trend in the gaming industry where companies are increasingly making "necessary adjustments to reflect market conditions."
Ouka Studios was part of NetEase's efforts to expand its footprint in the console gaming sector, a move that was seen as ambitious given the company's stronghold in mobile and PC gaming within China.
Price Action: NetEase is currently trading at $80.29, down 0.34% in the past 24 hours.
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