Business
Chinese Gaming Titans Tencent and NetEase Reassess Japanese Investments Amid Domestic Market Resurgence
Tencent and NetEase are reassessing their financial commitments in Japan following a lack of major video game hits. These Chinese gaming powerhouses are rethinking their investment strategies in Japanese companies, due to a resurgence in the Chinese market, largely driven by Black Myth: Wukong.
Tencent Holdings and NetEase are reevaluating or reducing a significant portion of their investments in Japanese game studios. This decision follows years of investments that have not resulted in any major gaming successes, and a resurgence in the Chinese market.
NetEase's much bigger competitor, Tencent, is also reevaluating its investment speed and size in the country, according to sources who wished to remain anonymous because the information isn't public yet. They also revealed that Tencent has already withdrawn from a number of financial promises for new games.
Unrevealed actions to reduce workforce and expenditure in Japan have taken place after years of pouring money into the third largest gaming market globally, with little to no return. The two leading game publishers in China have been trying to break away from a stagnant domestic market by making numerous investments in Japan since 2020, hoping to cultivate the next big entertainment sensations to introduce in their home country.
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