Several studios under the NetEase umbrella are allegedly at risk of closure after the company decided to remove itself from international operations. In recent years, NetEase has acquired several game studios and placed leadership within the new studio to help get things off the ground. Though not every one of those studios has even released a title yet, it seems they may not get the chance to, as closures could be coming soon.
According to Venturebeat, who got their original information from GameFile, the publisher has sparked fear in the hearts of several different studios, as they appear to be "offloading" a massive amount of their overseas holdings located in the US. According to Venturebeat, NetEase denied these "offloading" claims quite quickly.
NetEase Might Be Cutting Ties With Several Of Its Overseas Studios
Though The Publisher States This Is Not The Case
While NetEase has denied these claims, according to Venturebeat who reached out for comment, studios are still concerned after the entire Seattle-based team that worked on Marvel Rivals was laid off. One of the studios that could potentially be affected, GPTRACK50 Studios, is led by former Resident Evil producer Hiroyuki Kobayashi.
Worlds Untold, which is led by Mac Walters, who is known for their writing work on Mass Effect, has yet to put anything out since NetEase acquired them. Given the circumstances that could end up shutting down the studio, they may never get the chance to. Allegedly, the issue lies within the amount of money NetEase spends on creating titles overseas, with the high cost of US-based developers in particular adding to that ever-increasing price tag.
One of GameFiles' sources claims that if these studios are unable to get funding relatively quickly, outside NetEase of course, they will inevitably be shut down.
This Is Not The First Cut NetEase Has Made Recently
It Appears It Will Not Be Their Last Either
Layoffs and closures are sadly nothing new in the gaming industry, as over the years, many major studios have been forced to close doors they never dreamed of closing. It seems that even NetEase, the second-largest publisher in China, is not immune to the ever-increasing volatility of the industry. NetEase set out with a very ambitious goal to expand and make several big-budget titles, acquiring nearly 20 game studios in both the West and Japan. However, it seems that the company may have proven to be a bit over-ambitious.
Though the publisher states that this is not the case, only time will tell whether more closures are imminent, or if NetEase will be able to find buyers for several US-based studios before it's too late.
Source: GameFile, Venturebeat
