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NetEase Games has reportedly cut “all but a handful of jobs” at its Tokyo-based subsidiary Ouka Studios, which recently shipped Visions of Mana under contract for Square Enix. According to a Bloomberg report citing people familiar with the matter, NetEase plans to close Ouka Studios shortly after the game’s release. Despite the game’s critical acclaim, the studio is facing closure due to significant downsizing, with only a few members left to oversee the release of its final projects.
Seeing reactions to the story in English, I can add one thing that is in the Japanese version of the same story: NetEase has been cutting staff at Ouka for a while, since this spring at least.https://t.co/NxoCMo0bTZ
— Takashi Mochizuki (@6d6f636869) August 30, 2024
The decision to close Ouka Studios is part of a broader trend where major Chinese gaming companies like NetEase and Tencent are reevaluating their investments in Japanese game developers. This shift is influenced by a mismatch in ambitions between the Chinese companies, which seek large, globally successful franchises, and Japanese developers, who often prefer smaller, lower-risk projects. Additionally, the success of domestic titles like Black Myth: Wukong has encouraged these companies to focus more on local developers.
NetEase has not officially announced the closure, stating that they are making necessary adjustments to reflect market conditions and continue to support studios outside China. This move comes amid widespread layoffs and studio closures in the gaming industry, affecting major companies worldwide.
