A person with knowledge of the situation told CNBC that ByteDance, the parent firm of TikTok, is laying off hundreds of workers in its gaming division. This is a major withdrawal from a sector in which it had invested billions of dollars to compete with Tencent, the market leader.
“We assess and tweak our businesses on a regular basis, focusing on long-term strategic growth areas. A ByteDance representative told CNBC, “We’ve made the difficult decision to restructure our gaming division following a recent evaluation.”
Nuverse is the name of the primary gaming subsidiary of the Chinese computer company. A source with knowledge of the situation, who wished to remain anonymous, informed CNBC that hundreds of positions are anticipated to be eliminated from this division. The individual stated that while Nuverse won’t shut down entirely, it will be drastically reduced.
This insider added that ByteDance has also instructed staff to cease working on titles that have not yet been released. Reuters broke the story first.
In an attempt to take on rival gaming behemoths like Tencent and NetEase in China, ByteDance has made a strong push into the gaming industry over the last few years.
By acquiring Moonton, a significant mobile game studio, in 2021 for an alleged $4 billion, ByteDance demonstrated its aspirations. As per the individual who talked with CNBC, the corporation is currently considering selling Moon-ton.
After a difficult few years, when people were cooped up home playing video games during the height of the Covid epidemic, China’s gaming sector has experienced a decline. Although it has since softened, the industry has nonetheless had to contend with a strict regulatory environment.
Source (CNBC)
