Chinese tech giant ByteDance, the parent company of the popular app TikTok, has reportedly eliminated several positions within its gaming unit, NewVerse, in a move signaling a pullback from the intensely competitive video game sector. According to an informed source on Monday, ByteDance’s subsidiary based in Beijing is currently undergoing a workforce reduction affecting “hundreds of individuals.”
A ByteDance spokesperson explained in a statement, “We routinely assess our operations and make adjustments to prioritize long-term strategic growth areas. Following a recent review, we have made the challenging decision to restructure our gaming division.”
Despite ByteDance’s significant investments in NewVerse over recent years to compete with industry leader Tencent, the decision to streamline its presence in the video game market is notable. The objective is to enable ByteDance to concentrate on its core business and streamline its organizational structure, and the ongoing layoffs do not imply a complete dissolution of the gaming unit, according to the source.
The downsizing is intended to assist ByteDance in focusing on its core operations and refining its organizational structure. The source emphasized that certain games, such as the well-known action game “Crystal of Atlan” with an active player base, will continue their operations as the company seeks to diversify its asset portfolio.
Despite ByteDance’s aspirations, NewVerse, launched in 2019 as a challenger to Tencent’s dominance, has fallen short of achieving the commercial success the company envisioned. Tencent, also a Chinese tech giant, remains the industry leader in global video game revenues, wielding influence in the Asian market and making investments in game studios worldwide.
Leave a Reply