Report claims NetEase's financial strain could lead to the closure of over a dozen game studios

Recent reports indicate that NetEase could be on the brink of closing more than a dozen of its studios worldwide. This news comes after a series of layoffs and financial challenges that have already impacted several of its properties.

The details:

• An article by Stephen Totilo from Game File has suggested that NetEase is considering divesting several of its international studios, which were opened or acquired over the past three years. Sources familiar with the matter suggest that this move could lead to closures if these studios fail to secure independent funding after being cut off from NetEase's support.
• This news follows recent layoffs within NetEase's North American Marvel Rivals team, despite the game's ongoing success. Additionally, another studio, Liquid Swords, announced redundancies last week, signaling a trend of financial distress within the company's operations.
• Totilo’s report stresses that the scope of potential closures is broad, affecting more than just a few studios. "NetEase is actively shopping around more of its non-Chinese studios—many of the very same ones it announced over the last three years," Totilo states, quoting two people who were not authorized to speak publicly on the matter.
• NetEase has not yet publicly commented on these specific reports, though it has acknowledged that its operations and investments are under "constant review and evaluation." The outcomes of these reviews could lead to substantial changes in its global studio network.

More gaming news:

• A former Nintendo employee has predicted a June launch for Switch 2 and a price point of around $400 for the next-generation console.
• It has emerged that sales of the PlayStation 5 Pro are trailing behind the PlayStation 4 Pro in the United States market.