Chinese video game company NetEase has reportedly laid off most staff at Visions of Mana developer Ouka Studios with plans to shut it down altogether.
Anonymous sources familiar with the situation told Bloomberg that the studio, which only opened in 2020, will be kept afloat by the few remaining members until its final games have been released. Visions of Mana only launched yesterday, August 29, 2024, and earned high critical praise. (IGN's Visions of Mana review returned an 8/10.)
The closure of Ouka Studios is reportedly due to major Chinese companies like NetEase and its rival Tencent shifting away from a Japan-centric approach.
Bloomberg reported that Tencent is also reconsidering how much it invests in Japanese video game developers and has already backed out of several funding commitments. It had secured the rights to develop and publish the mobile version of anime-inspired game Blue Protocol, for example, but on August 28 Bandai Namco announced Blue Protocol would be shut down altogether and its worldwide release, set to be handled by Amazon Games, was cancelled.
One source said the success of Black Myth Wukong, which sold a staggering 10 million copies in three days and comes from a relatively small Chinese developer, has also inspired NetEase and Tencent to look for investments domestically. These Chinese companies have otherwise found their visions misaligned with the Japanese developers they looked to invest in, according to the report.
NetEase told Bloomberg it had "nothing to announce" regarding the closure of Ouka Studios. Tencent said it is "always making necessary adjustments to reflect market conditions."
The past two years have seen countless video game industry layoffs as big companies including Microsoft, Sony, and the embattled Embracer Group have not just cut jobs but shut down entire studios.
Microsoft shut down Redfall developer Arkane Austin alongside Hi-Fi Rush and Ghostwire Tokyo developer Tango Gameworks in May 2024 in a move met with shock and anger by industry peers and fans.
Embracer Group shut down Saints Row developer Volition in 2023, while Sony shut down its London Studio in March 2024 amid layoffs affecting 900 staff across the PlayStation business.
Ryan Dinsdale is an IGN freelance reporter. He'll talk about The Witcher all day.
