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TikTok’s parent company’s plans for video games became prominent after its gaming division became one of the firm’s six core business units in 2021. ByteDance’s gaming unit competed against major Chinese gaming companies including Tencent, NetEase and MiHoYo. After two years, the short-lived gaming department called Nuverse is significantly scaling back its operations as it’s becoming “expensive” for the company.
In a statement to TechCrunch, a ByteDance spokesperson said: “We regularly review our businesses and make adjustments to centre on long-term strategic growth areas. Following a recent review, we’ve made the difficult decision to restructure our gaming business.”
How the latest layoffs will affect ByteDance
According to the report, the latest round of mass layoffs has already started and many members of Nuverse are yet to get a confirmation about their positions in the company. The report didn’t reveal the number of employees that will be eventually affected by the restructuring.
In 2021, Nuverse grew to around 3,000 people and over the last couple of years, the gaming division has largely remained that size, reports Chinese tech news outlet LatePost.
ByteDance’s gaming acquisitions
The Chinese firm has also spent heavily on acquisitions. In March 2021, ByteDance paid $4 billion to acquire a Shanghai-based studio called Moonton. The studio is known for its mobile multiplayer online battle arena (MOBA) game Mobile Legends: Bang Bang which was released in 2016. Earlier this month, the company was planning to divest the studio and met with a Saudi Arabia-based firm for discussion, reports news agency Reuters.
In a statement to TechCrunch, a ByteDance spokesperson said: “We regularly review our businesses and make adjustments to centre on long-term strategic growth areas. Following a recent review, we’ve made the difficult decision to restructure our gaming business.”
How the latest layoffs will affect ByteDance
According to the report, the latest round of mass layoffs has already started and many members of Nuverse are yet to get a confirmation about their positions in the company. The report didn’t reveal the number of employees that will be eventually affected by the restructuring.
In 2021, Nuverse grew to around 3,000 people and over the last couple of years, the gaming division has largely remained that size, reports Chinese tech news outlet LatePost.
ByteDance’s gaming acquisitions
The Chinese firm has also spent heavily on acquisitions. In March 2021, ByteDance paid $4 billion to acquire a Shanghai-based studio called Moonton. The studio is known for its mobile multiplayer online battle arena (MOBA) game Mobile Legends: Bang Bang which was released in 2016. Earlier this month, the company was planning to divest the studio and met with a Saudi Arabia-based firm for discussion, reports news agency Reuters.
Some of the best online games published by ByteDance include Marvel Snap, One Piece: The Voyage, and Crystal of Atland. Marvel Snap was developed by US-based studio Second Dinner.
The new agency also cited sources to report that ByteDance will soon announce the “winding down of its Nuverse gaming brand and full retreat from mainstream video games.” However, the company confirmed that these portions of the team will be retained.
ByteDance launched the Pico AR/VR headset to take on Meta’s Quest headsets in the Chinese market in 2022. Earlier this month, the company laid off hundreds of employees from its mixed reality division and halted expansion.
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