NetEase to Divest Overseas Studios; Quantic Dream, Grasshopper at Risk

Chinese gaming giant NetEase is reportedly scaling back its international investments by actively shopping for buyers for its non-Chinese studios. According to anonymous sources speaking to Game File, the company plans to divest the majority of its overseas teams, a move that could put renowned studios such as Quantic Dream and Grasshopper Manufacture at risk of closure if suitable buyers are not found.

This strategic pullback began at the end of last year when NetEase cut jobs and paused production at several projects, including Worlds Untold, Jar of Sparks, and Liquid Sword. Now, amid rising costs and increased pressure to optimize efficiency, NetEase is re-evaluating its global portfolio. Sources claim that other studios in danger include Nagoshi, Skybox Labs, Studio Flare, and T-Minus Zero Entertainment, as well as smaller teams like Anchor Point, GPTRACK50, Jackalyptic Games, and Rebel Wolves.

In a statement to Game File, NetEase declined to comment formally, saying, "All studios and projects are in constant review and evaluation, and NetEase will determine changes needed to be made throughout that process." This signals that while the company remains committed to its global expansion plans, it is also prepared to offload non-core assets to curb escalating operational expenses.

Further fueling concerns, NetEase recently cut jobs at its successful US-based Marvel Rivals creative team, a decision reportedly made to "optimize development efficiency." Despite the game's success, the move underscores the financial pressures driving the firm to divest its international assets.

The potential divestiture of these studios could have significant implications for the global gaming industry. If buyers are not secured, high-profile studios like Quantic Dream and Grasshopper Manufacture may face closure, reshaping the competitive landscape and impacting the diversity of gaming innovations.

As NetEase continues to streamline its operations amid rising costs, the fate of its overseas studios remains uncertain. The coming months will be critical as industry watchers monitor whether this divestiture strategy will deliver the necessary financial relief and how it might affect the broader global game development scene.

Stay tuned to The Horizons Times for the latest updates on NetEase and other breaking gaming industry news.