ByteDance, the parent company of TikTok, is set to make a splash by phasing out its gaming brand Nuverse and steering clear of mainstream video games, as reported by Reuters citing insiders.
Impacting numerous jobs, the Chinese juggernaut will communicate to its workforce to halt work on unreleased games by December, and explore avenues to divest existing titles.
The $185 billion global video games market will no longer be on ByteDance’s horizon, as the company goes hands-off of the gaming scene.
“We regularly review our businesses and make adjustments to center on long-term strategic growth areas. Following a recent review, we’ve made the difficult decision to restructure our gaming business,” a company spokesperson stated in light of the move.
Interestingly, ByteDance’s casual gaming brand Ohayoo, integrated with Douyin (TikTok’s sister app in China), remains unaffected, alongside casual games featured on TikTok.
The shutting down of Nuverse marks ByteDance’s withdrawal from the once-thriving gaming realm, dominated by Tencent and NetEase. This retreat follows ByteDance’s reported negotiation for the sale of Moonton Technology, its gaming unit involved in a $4 billion deal in 2021.
Established in 2019, Nuverse was intended to be a formidable force in the global gaming arena, posing a strategic challenge to local giant Tencent. Unfortunately, Nuverse’s journey has been quite turbulent, with its most popular game “Marvel Snap” failing to achieve commercial success but amassing a dedicated following.
Nuverse once again grabbed headlines in 2021 as part of ByteDance’s restructuring, where it acquired external studios, including C4games, to bolster its production capacity.