TikTok’s parent company ByteDance is slashing hundreds of jobs in its gaming division after having poured billions into the program, a source told CNBC Monday. The move marks a significant retreat by one of the world’s leading tech companies from a market it had great plans for.
ByteDance’s gaming branch was called Nuverse, and the source confirmed that multiple hundreds of positions will be cut. The source added that the gaming division will not be shuttered but will be reduced in scale.
“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,” a ByteDance spokesperson told Reuters.
The gaming unit was conceived to challenge Chinese gaming companies like Tencent and NetEase. ByteDance had ambitions to push back on their dominance over the market.
TikTok owner ByteDance axes hundreds of jobs in gaming unit as it scales back ambition https://t.co/FipajNbJok
— CNBC (@CNBC) November 27, 2023
Learn the benefits of becoming a Valuetainment Member and subscribe today!
ByteDance allegedly ordered all employees to cease all work on new games as the developer reconsiders its strategy, according to Reuters.
Reuters also reported that ByteDance has no plans to re-enter the $185 billion global video games industry, according to an anonymous source.
None of the game companies which feature their products on TikTok’s Chinese counterpart Douyin will be affected, nor will simpler games that TikTok manages. Previously, ByteDance was soliciting buyers for game developing project Moonton Technology and had overhauled its virtual reality company Pico by cutting many employees.
Nuverse was created in 2019 with the intention to outcompete major game development companies and make a name for itself. But things did not go as planned. Nuverse’s most successful game, an online card game called “Marvel Snap,” managed to attain a big following but those gains did not transfer into commercial success.
Add comment