Written by Dante Uzel on 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.
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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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