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ByteDance ’s gambling ambition has been an expensive , short - lived pursuit .
In late 2021 , the TikTok parent ’s plans for video biz came into the spotlight after it becameone of the firm ’s six core patronage building block , dumbfound a new threat to incumbent such as Tencent and NetEase and rising star MiHoYo . yet , after two years of tepid performance , the gaming section , telephone Nuverse , is importantly scale back its operations in a move that has surprised many employees .
This daily round of aggregative layoffs come out on Monday and many members of Nuverse are still anxiously awaiting a verdict on their future , people familiar with the subject narrate TechCrunch . It ’s unclear how many employees will be affected by the restructuring eventually , but Nuverse had quickly grow toaround 3,000 peoplein 2021 and has for the most part stay on that size over the preceding few years , according to Taiwanese tech news outletLatePost .
ByteDance has also spent heavily on acquisition , including a $ 4 billion purchase of a bright Shanghai - studio studio called Moonton . Reutersreportedearlier this month that the firm is looking to divest the studio and has met with a Saudi Arabia - free-base business firm for treatment .
Reuters firstbrokethe news program about the layoffs on Monday morning , reporting that ByteDance would presently herald the “ winding down of its Nuverse gaming stigma and full hideaway from mainstream video games , ” summon sources . But ByteDance ’s gossip evoke that portions of the team will be retained .
ByteDance ’s trouncing in video games — andits practical reality endeavor Pico — casts doubt over the universal applicability of itsdata - ram , A / B testing strategythat has catapult TikTok to global dominance . Through its short - video recording apps , ByteDance has amassed an unparalleled wealth of consumer insights . The success of video game , however , demands a much longer , more patient creative mental process and is arguably less predictable than the instantaneous gratification give up by dopamine - conflate video recording clips . Both of its rivalsTencentandNetEasehave been pouring more resources into games with longer development cycles .
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Without a breakthrough title or commercial achiever after two eld , Nuverse ’s placement as one of ByteDance ’s key revenue drivers is likely under closemouthed examination by the business firm ’s management squad . ByteDance remains one of the rare Taiwanese net giant star that have not gone public , partly due to its web in rise U.S.-China tensions .
The tidy sum layoffs at Nuverse impart more high-risk newsworthiness to the Chinese internet industriousness , which is whirl from a widespread regulatory crackdown in recent years , leading to dampened businesses and slashed work force . The video gambling sector in special was rack up hard by ahiatus in license blessing , and even though the physical process has resumed , the space ’s recoveryhas been throttle by macroeconomic challenges .
ByteDance ’s Oculus challenger Pico place off C , halts aggressive expansion
