Business
Chinese Gaming Titans Tencent and NetEase Reassess Japan Investments Amid Resurgent Domestic Market
Tencent and NetEase are reassessing their financial commitments in Japanese game development studios, following a lack of major hit games. This comes as China's gaming market experiences a resurgence, largely driven by Black Myth: Wukong.
Tencent Holdings and NetEase are reevaluating or reducing a lot of their financial commitments to Japanese gaming studios. This follows a period where their large investments did not result in many successful games, and the Chinese gaming market rebounded.
Tencent, a company much bigger than NetEase, is also reevaluating the speed and size of its investments in the nation, according to anonymous sources. These sources also reveal that Tencent has already withdrawn from a number of financial pledges for new games.
Unrevealed until now, the actions to reduce personnel and expenditure in Japan come after years of injecting capital into the third largest gaming market globally, with little to demonstrate in return. In an attempt to break away from a sluggish domestic market, China's two leading game publishers have been placing a series of wagers in Japan since 2020, in hopes of fostering the next big entertainment sensations to reintroduce in their home country.
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