NetEase Pledges Continued Support for International Studios While Advocating for Structural Reforms

Logo / artwork courtesy of NetEase

Chinese enterprise NetEase has informed Game Developer that it will continue to enhance its numerous international studios, but cautioned that organizational adjustments may be a ‘necessary component’ of ongoing improvements.

The Shock Opponents developer reaffirmed its position following Bloomberg’s report that the company had let go of a substantial number of employees within its studio network and canceled multiple projects.

The publication asserted that under CEO William Ding’s guidance, NetEase had retracted support for global investments in order to concentrate on a more limited portfolio of enduring, mass-market titles such as Eggy Event.

NetEase has previously established and contributed to a wide range of foreign studios including Jar of Sparks, Ouka Studios, Bullet Farm, Worlds Untold, Skybox Labs, Riot Wolves, Anchor Point, and more.

Some of these companies, like Skybox Labs and Ouka Studios, have reportedly laid off employees in recent months. Others like Riot Wolves and Anchor Point have recently issued statements clarifying they remain unaffected by the alleged industry shift.

As for NetEase itself, in response to Bloomberg’s reporting and the comments made by its studios, a company representative stated to Game Developer that the organization remains dedicated to its international expansion goals but acknowledged that “business evaluations” have been taking place.

Recent “business evaluations” at NetEase

NetEase opted to terminate multipleShock Opponents developers in the US following one such evaluation. This decision was made after the multiplayer hero shooter achieved over 40 million players within months of launch.

“Regarding our international business initiatives, NetEase has not faltered in its global growth strategy. Our ‘two-pronged’ approach (merging self-development and investments to penetrate global markets) is still actively underway and producing favorable results,” stated a NetEase representative.

“In terms of our investment strategy, every decision has been based strictly on business evaluations and has not been swayed by external factors. Our studios in North America, the UK, Spain, France, and Japan continue to optimize and advance their ongoing game projects.”

NetEase acknowledged that it is actively scouting and fostering talent across its international enterprise, but added that “organizational structure changes aimed at enhancing performance are a vital aspect of our ongoing growth.”

“Mr. Ding remarked during the most recent earnings call that NetEase is committed to supporting truly high-quality studios and skilled creators,” the company stated.

“This is the company’s strategy, and there is no alteration in this plan. For any studio worldwide, it is our duty as a responsible commercial entity to regularly assess the progress, viability, and potential for success of our products and teams.”

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