NetEase Games has cut “all but a few jobs” at its Tokyo-based subsidiary Ouka Studios. Mana Visions Square Enix is under contract and plans to close the studio, according to Bloomberg, citing people familiar with the matter.
The few remaining employees at the studio will reportedly oversee the release of its latest games. In 2022, two years after its founding in 2020, Ouka Studios announced three projects currently in development: an action RPG featuring an adventure with unique allies, a new style fighting game based on the popular series, and an original co-op action game featuring giant enemies.
In an email, a representative for NetEase Games told Bloomberg that it has “nothing to announce” about the potential closure of Ouka Studios, and that it has seen progress at many of the Japanese studios in which it has invested.
“By supporting studios outside of China, we are developing our strategy based on our goal of providing a better gaming experience to local and global players,” said a NetEase Games spokesperson. The company “thus always makes necessary adjustments to reflect market conditions.”
NetEase Games also owns Nagoshi Studio led by Toshihiro Nagoshi, Grasshopper Manufacture led by Goichi “Suda 51” Suda, and GPTRACK50 led by Hiroyuki Kobayashi.
According to Bloomberg, NetEase Games rival Tencent is also reconsidering the pace and scale of its investment in Japan, pulling back on at least some financial commitments for new games.
In a statement, Tencent told Bloomberg that it is committed to its partner studios and growing its business in Japan.