TikTok owner ByteDance is cutting back its gaming division, causing mass layoffs

ByteDance, owner of TikTok, should lay off hundreds of employees from the gaming divisionbeing reformulated to accommodate the decline in demand. CNBC this Monday (27). The gaming subsidiary had been raising billions of dollars in investments over the past two years to challenge Tencent.

According to the report, ByteDance could not achieve the success in games that it achieved during the Covid-19 epidemic. Strict rules of regulatory authorities in the country also seem to have affected this market.

After the decline in the segment, ByteDance decided to reduce investments in games and even asked developers to no longer work on unreleased games.

ByteDance’s gaming division is named Nuverse It will not be completely closed, but there will be a significant reduction.

“We regularly review our business and make adjustments to focus on strategic areas of long-term growth. Following a recent review, we have made the difficult decision to restructure our gaming business,” a spokesperson for the Asian company said in a statement. The number of workers affected by mass layoffs was not disclosed.

ByteDance studio may be sold

As a result of the decrease in investments made in games by the owner of TikTok, It is possible that ByteDance will sell Moonton studio, as a source disclosed to the publication. The brand, which specializes in games for mobile devices, was acquired for US$ 4 billion in 2021; this is equivalent to R$19.5 billion at current prices.

This acquisition represented a major step towards the gaming market for the company at the time. Nuverse currently has approximately 3,000 employees. However, it has not achieved the same success as rival Tencent, which owns and is responsible for the implementation of WeChat. Honor of KingsOne of the most popular games among Chinese people.

Related to Nuverse RPG Atlan’s Crystal This was one of his most talked about releases. The subsidiary also brought the following titles to the market: Marvel Snap, World: Revival, One Piece: Blood Lanes This Land of Empires: Immortalamong others.