TikTok parent shuts down gaming unit, lays off hundreds
ByteDance, TikTok's parent company, is planning to shut down its Nuverse gaming division and withdraw entirely from the mainstream video game industry, according to Reuters. An official announcement of this move is expected today. Hundreds of employees are anticipated to face layoffs, along with discontinuation of ongoing projects. ByteDance's decision signifies a definitive step as it departs the lucrative $185 billion global gaming market, effectively conceding victory to its rival, Tencent Holdings.
Divesting from launched titles
In addition to closing Nuverse, ByteDance is looking into divesting from already launched games. Earlier this month, Reuters revealed that the company was seeking buyers for its game development subsidiary, Moonton Technology. ByteDance also restructured its virtual reality firm, Pico, significantly downsizing its content team. However, casual gaming brand Ohayoo and casual games on TikTok and Douyin will not be impacted by these changes.
Nuverse has had a patchy performance
Established in 2019, Nuverse was ByteDance's ambitious entry into the global gaming market and a strategic move against domestic competitor Tencent Holdings, the world's largest gaming company. Despite this, Nuverse's performance has been uneven. Its most popular game, Marvel Snap, gained a cult following but did not achieve commercial success. Other titles include action games One Piece: The Voyage and Crystal of Atland. In 2021, Nuverse acquired external studios like C4games to increase production capacity.
