NetEase Games, one of China’s largest game developers and publishers, is reportedly planning to shut down its Tokyo-based subsidiary, Ouka Studios, as per Bloomberg.
This news comes just days after the studio’s latest game, Visions of Mana, was released on multiple platforms, including PlayStation 4, PlayStation 5, PC, and Xbox Series X/S.
Visions of Mana, the fifth title in the series, was launched with a price tag of $60 and has received an 81% positive rating from over 400 reviewers on Steam. The game also saw a peak of over 6,000 players on its second day, driven by favorable reviews. Despite this, Ouka Studios seems to be facing significant challenges.
According to reports, the studio has undergone major layoffs, with sources suggesting that nearly all employees have been let go. Only a few staff members remain, tasked with overseeing the final stages of the studio’s projects before it potentially closes its doors for good.
Ouka Studios was established in 2020 by NetEase Inc. with the ambitious goal of creating console games. This was a bold move for NetEase, a company that had already secured a strong position in the mobile and PC gaming markets within China. The studio’s creation was seen as part of NetEase’s broader strategy to expand its reach in the global gaming industry.
The news of the studio’s possible closure was first reported by journalist Takashi Mochizuki, who shared additional details on social media. Mochizuki noted that the layoffs had been occurring since at least the spring of this year.
NEW: Tencent and NetEase are rethinking their Japan investment as Japanese developers failed to produce hit games. NetEase cut many staff at Ouka Studio with a plan to shut it down while Tencent backed off from funding commitments on several projects.https://t.co/89nXAwVFYa
— Takashi Mochizuki (@6d6f636869) August 30, 2024
Currently, NetEase has not made any official announcement, but if true, Ouka Studios will join a list of other studios closed in 2024. These include:
- Arkane Austin (Microsoft)
- London Studio (PlayStation)
- Riot Forge (Riot Games)
- Tango Gameworks (Microsoft)—which was later saved by KRAFTON
- Ridgeline Games (EA)
- Deviation Games (PlayStation)
- Ready at Dawn (Meta)
- Shipyard Games (Supercell)
Additionally, other gaming entities like Xbox 360 Marketplace, Game Informer magazine, and Xbox physical game division also faced closure this year.
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