In recent years, Japan has been one of the priority markets for the Chinese giants Tencent and NetEase. They have been actively investing in Japanese game studios in hopes that they will produce hits. According to Bloomberg sources, both companies have not achieved the desired outcomes and are now re-evaluating their strategy.
Visions of Mana
It is reported that Tencent is disappointed with the lack of global ambitions among Japanese developers. Local studios supposedly prefer to focus on small, low-risk projects, whereas Tencent desires games that have the potential to become global franchises. As a result, Tencent has reduced the pace and scale of its investments in the country and has pulled back from funding several new games.
In turn, Bloomberg writes that since spring, NetEase has been conducting layoffs at Ouka Studios in Tokyo—the studio behind the recently released Visions of Mana. The studio is planned to be closed later on.
Nonetheless, it is believed that neither Tencent nor NetEase intends to completely sever ties with Japanese developers. According to Bloomberg, they will continue to collaborate with major companies like Capcom and Bandai Namco Entertainment.
A NetEase representative declined to comment to Bloomberg on the possible closure of Ouka Studios. However, he stated that the company "sees progress" with many of its Japanese partners and intends to continue supporting studios outside China. Tencent reported to the publication that it remains committed to growing its business in Japan.