ByteDance, the parent company of the wildly popular social media platform TikTok, has set its course for a major restructuring within its gaming division, particularly impacting its subsidiary, Nuverse. The decision, which reportedly involves extensive layoffs, signifies a significant retreat from ByteDance’s once-ambitious foray into the gaming industry.
Nuverse’s Journey: A Two-Year Modest Odyssey
Nuverse, established by ByteDance in 2019, had been the focal point of the company’s gaming ambitions, focusing on standalone mobile and web games. One of its notable successes was the publishing of “Marvel Snap”, a popular online card game developed by the US-based studio Second Dinner. However, despite initial strides, Nuverse faced challenges over the past two years, experiencing a period of modest performance in the competitive gaming landscape.
The restructuring announcement comes on the heels of ByteDance’s routine business review, a process that led to what the company describes as a “Difficult decision” to restructure its gaming business. The move signals a departure from the gaming sector, a domain where ByteDance had hoped to carve a significant niche.
The Nuverse Layoffs: Impact on Employees and Ongoing Projects
The restructuring within Nuverse is expected to have a substantial impact on its workforce, affecting approximately 3,000 employees. The decision to discontinue ongoing gaming projects adds another layer of complexity, with employees being given until December to conclude their work on unreleased titles. ByteDance, however, has not disclosed the exact number of roles affected by this restructuring, leaving many in the gaming community in suspense.
This move is not isolated within the gaming sphere, as ByteDance recently initiated layoffs at Pico, a VR hardware company acquired in 2021. The restructuring at Pico was part of a broader strategy to refocus on “Hardware and core technologies”, aligning with ByteDance’s efforts to streamline its business operations.
Moonton’s Fate: ByteDance Contemplates a Sale
As part of its broader restructuring efforts, ByteDance is reportedly exploring the sale of Moonton, a mobile gaming studio it acquired in 2021 for a substantial $4 billion. Moonton gained recognition for its Multiplayer Online Battle Arena (MOBA) game, “Mobile Legends: Bang Bang”, launched in 2016. ByteDance’s consideration of selling Moonton further underscores the company’s shift away from the gaming industry.
The sale of Moonton, if it materialises, would be a strategic move by ByteDance to divest itself of gaming assets acquired during its ambitious foray into the market. The outcome of these discussions will not only impact Moonton’s future but also shape ByteDance’s overall standing in the gaming landscape.
Also Read: Top 10 Android Games
Nuverse Games in Limbo: Marvel Snap and Beyond
The fate of Nuverse’s portfolio of games, including the highly popular “Marvel Snap“, remains uncertain. ByteDance has expressed its intention to discontinue ongoing gaming projects within Nuverse, potentially selling existing titles. This includes Marvel Snap, known for its engaging gameplay and integration of the Marvel universe into the gaming experience.
Marvel Snap, developed by Second Dinner, assures its community that the game will not vanish, providing a glimmer of hope for players invested in the captivating online card game. The reassurance also hints at the possibility of other publishers expressing interest in acquiring the rights to Nuverse’s gaming titles, ensuring the continuity of these virtual worlds.
ByteDance’s Shifting Business Landscape: From Gaming to Core Focus
ByteDance’s decision to retreat from the gaming sector aligns with its broader business strategy. The company, founded more than a decade ago by Zhang Yiming and Liang Rubo, skyrocketed to internet leadership with the virality of TikTok and Douyin. However, ByteDance has recently faced challenges in sustaining its gaming ambitions, particularly in competing with industry giant Tencent.
The Chinese mobile gaming sector, the world’s largest, has witnessed challenges in regaining its pre-COVID heights amid a global downturn. Tencent, a dominant force in the industry, has managed to sustain growth, leveraging its industry-leading portfolio and resilient consumption in more affordable segments, such as online entertainment.
ByteDance’s withdrawal from the gaming industry follows a pattern observed since last year, when the company began shutting down in-house gaming studios and reducing development jobs. This strategic shift focuses ByteDance’s efforts on core businesses like short-video platforms and e-commerce, areas where the company has demonstrated significant success.
Our Final Say: Navigating the Waves of Change
ByteDance’s restructuring within its gaming division, particularly with Nuverse, marks a significant chapter in the company’s journey. The layoffs, project discontinuations, and potential asset sales underscore the challenges ByteDance faced in its attempt to establish a significant presence in the gaming industry. As the gaming community awaits further developments, the reassurance from Marvel Snap’s developers hints at the resilience of creative endeavours, even in the face of corporate reshuffling.
The gaming industry’s ever-changing landscape requires companies to adapt swiftly, and ByteDance’s strategic shift reflects the dynamic nature of this space. While ByteDance may be stepping back from gaming, the company’s continued focus on its core strengths suggests that this is not the end of its innovation journey. As the waves of change continue to shape the tech and entertainment landscape, ByteDance’s ability to navigate these waters will undoubtedly be closely observed by industry stakeholders and enthusiasts alike.
Read More: 5 Best Marvel Games of All Time