It appears that NetEase could be considering a significant withdrawal from the international gaming market. As reported by VentureBeat, CEO William Ding seems to have lost faith in NetEase’s overseas teams. Although NetEase has not officially announced any such plans, the recent shutdown of a research and development studio responsible for Marvel Rivals development could be a sign of this major shift.
It appears that David Kaye, the founder of VC firm F4 Fund, had hinted at this action in advance, as he discussed geopolitical conflicts and the unpredictable decisions of certain CEOs potentially causing Chinese firms to abandon their international investment ventures.
Kaye stated that China appears to be stepping back on the global stage due to geopolitical pressures, unsuccessful strategic moves, and the decisions of certain business leaders. One prominent investor, who has made numerous investments over the past few years, is reportedly planning to withdraw from all non-Chinese ventures. Some of these investments may find buyers, while others might not be so fortunate.
As I sit here, engrossed in my gaming world, it dawns on me that the company Kaye mentioned could be none other than NetEase. This powerhouse has a history of substantial investments in international gaming companies, stretching as far as buying a share in Bungie (later acquired by Sony), and funding studios like Devolver Digital, or even purchasing development powerhouses such as Quantic Dreams and Grasshopper Manufacture.
The withdrawal of NetEase from some of its international investments may have profound and wide-ranging consequences, impacting titles like Marvel Rivals, but not necessarily all of its global investments as a whole. To clarify, NetEase has stated that it is indeed withdrawing from certain international investments, but not its entire portfolio abroad.
In a statement, NetEase has affirmed that they are steadfast in their global growth strategy for their business operations beyond national borders. Their tactic, which includes both independent research and financial investments to penetrate foreign markets, remains vigorously active and is generating favorable outcomes as planned since 2022.
In 2024, we proudly released games such as Once Human and Marvel Rivals, created within our own studios. These projects showcase NetEase’s capabilities, together with our skilled development teams, to produce top-notch games cherished by gamers around the globe. For the year 2025, we have a rich pipeline of upcoming titles in production, offering diverse genres like FragPunk, Ananta, and many others.
At the close of 2024, the company announced a reduction in its investment plans, which wasn’t due to any external reasons but rather strategic business assessments. However, they reassured that their studios across North America, the UK, Spain, and Japan would still receive ongoing support.
As a dedicated enthusiast, I’m eager to share that I strive to utilize the strengths and knowledge we’ve amassed at NetEase to empower every developer out there. To bring this vision to life, we’ve established an assessment system that treats all NetEase studios worldwide – whether domestic or overseas – fairly and equitably.
The reduction in focus on international teams by Chinese corporations is supported by Charles Yu, a partner at Pillar Legal based in Shanghai. He noted that high costs and managerial inefficiencies could influence future business choices. This perspective is evident in NetEase’s withdrawal from foreign investments, and even the dismissal of its overseas strategy investment team.
It seems that Chinese game companies, including NetEase, are less likely to establish development teams in the U.S. or other Western nations because of worries about excessive costs and management difficulties, as suggested by Yu. It’s plausible that NetEase is reducing its investments abroad, given a recent report stating that NetEase dismissed their entire overseas strategy investment team and closed down several studios in 2024. Nevertheless, NetEase has not publicly confirmed this news.
In global gaming industry rankings based on market value, NetEase holds a place among the top 10 companies, boasting an impressive valuation of approximately $68.4 billion. This esteemed company shares the spotlight with tech giants such as Apple, Tencent, Google, Xbox, and Nintendo.
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2025-02-20 15:41