Business
Chinese Gaming Titans Tencent and NetEase Reevaluate Japanese Investments Amid Domestic Market Revival
Chinese video game powerhouses, Tencent and NetEase, are reassessing their investments in Japanese game studios, given the lack of major successful video games. This comes as the Chinese gaming market witnesses a resurgence, driven by the game Black Myth: Wukong.
Tencent Holdings and NetEase are reassessing or reducing many of their investments in Japanese studios. This follows a period where several years of financial input resulted in a minimal number of successful games and a resurgence of the Chinese market.
NetEase's major competitor, Tencent, is reportedly reassessing the speed and magnitude of their investments in the nation, according to sources who wished to remain anonymous as the information is not yet public. They have reportedly pulled back on a number of funding pledges for new games, the sources added.
The undisclosed measures to reduce personnel and expenditure in Japan comes after multiple years of contribution in the world's third largest gaming market, which has not been particularly fruitful. The two leading game publishers in China have been attempting to break free from a sluggish domestic market by investing heavily in Japan since 2020, in hopes of cultivating the upcoming successful entertainment products to introduce in their home market.
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