ByteDance, the owner of TikTok, is on the verge of cutting hundreds of jobs. It shows that the Chinese Tech giant is retreating from an important segment where it has invested billions of dollars. To challenge other gaming giants of China like NetEase and Tencent, ByteDance has made an aggressive in the last few years.
According to the company’s inside sources, it regularly reviews its businesses. Hence, this step was an adjustment to focus on long-term strategic growth areas. However, the sources say that restructuring the gaming division of the company was a difficult decision.
Nuverse is the main gaming division of ByteDance. The company is now considering job cuts for this unit. However, the company is not completely shutting down Nuverse, but only scaling back the gaming unit. For this matter, the company also ordered its employees to stop working on unreleased games.
CNBC reported –
“Over the past few years, ByteDance has made an aggressive push into gaming in a bid to challenge other gaming giants like China’s Tencent and NetEase. ByteDance acquired a major mobile gaming studio called Moonton in 2021 for a reported $4 billion, underscoring its ambitions. The company is now looking to sell Moonton.”
ByteDance took this decision after the struggles of the Chinese gaming market for a couple of years. The gaming market failed to recapture its target audience during the COVID-19 pandemic, especially when people stayed indoors and played games. Furthermore, the industry also had to face a total regulatory environment. However, the government eased off the regulations later.
It is hard to achieve success in the gaming sector since it requires companies to create a steady stream of games that perform well in the market. Furthermore, the gaming titles also need to keep the gamers hooked for a longer period of time.