TikTok's parent company, ByteDance reportedly laid off hundreds of employees under its gaming division, Nuverse, as per CNBC.
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ByteDance Makes Adjustments, Cuts Jobs
In 2021, ByteDance acquired the mobile gaming studio Moonton for $4 billion, as part of its goal to penetrate the gaming industry. Moreover, the previous push was aimed to compete with other gaming giants such as Tencent and NetEase.
However, China's gaming industry has been in a tough spot after it experienced decline from its peak during the COVID-19 pandemic. Moreover, previous issues in a regulatory environment made it hard for the industry to push through.
"We regularly review our businesses and make adjustments to center on long-term strategic growth areas. Following a recent review, we've made the difficult decision to restructure our gaming business," ByteDance's spokesperson revealed to CNBC.
ByteDance Stops Working on Unreleased Games
As ByteDance decided to cut hundreds of roles under its gaming division, workers were immediately notified to stop working on unreleased games. The company also clarified that Nuverse will not shut down completely but will be scaled back.
During its venture, the company was able to release games such as Crystal of Atlan. Despite a couple of popular releases, the company struggled to make them a commercial success.
Success in the gaming sector lies in the company's ability to market its games to the point of profitability. It is also important to maintain the games' daily usage by keeping the players hooked. Tencent, one of China's biggest gaming company, have a successful catalog of profitable games.
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