Tencent and NetEase may be reducing their presence in Japan
In recent years, Japan has been one of the priority markets for Chinese giants Tencent and NetEase. They have actively invested in Japanese game studios, hoping to produce hits. According to Bloomberg sources, both companies have not achieved their desired outcomes and are now reconsidering their strategy.
Visions of Mana
It is reported that Tencent is disappointed with the lack of global ambition among Japanese developers. Local studios allegedly prefer to work on small and not very risky projects, whereas Tencent seeks games capable of becoming world-class franchises. As a result, Tencent has reduced the pace and scope of its investments in the country and has also refrained from funding a number of new games.
In turn, Bloomberg writes that NetEase has been conducting layoffs since spring at the Tokyo-based Ouka Studios — the studio behind the recently released Visions of Mana. The studio is later scheduled to close.
However, it is assumed that neither Tencent nor NetEase intend to completely sever ties with Japanese developers. According to Bloomberg, they will continue to work with major companies like Capcom and Bandai Namco Entertainment.
A representative from NetEase declined to comment to Bloomberg on the potential closure of Ouka Studios. But they stated that the company "sees progress" among many of its Japanese partners and plans to continue supporting studios outside China. Tencent told the publication that they remain committed to growing their business in Japan.
