NetEase Cuts Jobs at Ouka Studios Ahead of Potential Closure

Bloomberg is reporting That Visions of Mana Developer Ouka Studios is about to be shut down by parent company NetEase.

The Japanese studio opened in 2020 and hired veteran developers from Capcom and Bandai Namco. It was chosen to handle production on Visions of Manaa new chapter in the popular series published by Square Enix.

The action-RPG received positive reception upon its launch earlier this week, but NetEase is reportedly looking to shut down the studio responsible for that critical success.

The Chinese conglomerate is said to be reconsidering and scaling back its investments in Japan after struggling to deliver successful titles. Bloomberg says NetEase has laid off “all but a handful” of Ouka developers ahead of a potential shutdown.

NetEase rival Tencent, another growing Chinese company with a penchant for heavy investment, is also said to be reconsidering its approach in Japan. The company has apparently pulled out of several funding commitments in the region that would have funded several new projects.

Despite investing heavily in Japanese studios, both NetEase and Tencent are reportedly struggling to overcome creative differences stemming from a “cultural mismatch.” Their partner studios in Japan are said to want to work on smaller, lower-risk projects rather than the flagship franchises coveted by NetEase and Tencent.

According to sources familiar with the matter, Tencent allegedly demanded more from potential partners in Japan when pitching investment deals.

In statements sent to Bloomberg, Tencent said it remains committed to its partner studios in the country. NetEase said it had “nothing to announce” in relation to the reported layoffs at Ouka.

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