NetEase has refuted claims of layoffs following the underperformance of its mobile title Operation Apocalypse in China. The company clarified to GamesIndustry.biz that employees were not laid off but instead reassigned to other departments.
Game Shutdowns Spark Confusion
The controversy began with reports from Chinese media and sources close to NetEase, stating that staff at the publisher’s Shenzhen office were affected by layoffs linked to Operation Apocalypse. The game, launched in February 2024, was shut down in October after failing to meet expectations.
NetEase clarified that Operation Apocalypse is not a rebranded version of Hyper Front, which was previously targeted by a Riot Games lawsuit for allegedly copying Valorant. Instead, it was a standalone title.
A String of Discontinued Games
Operation Apocalypse is one of four games NetEase announced it would discontinue in mainland China. The list also includes the Chinese version of Pokémon Quest. This trend of game closures has led to speculation about internal restructuring within the company.
Additionally, NetEase-owned studio Worlds Untold, launched in 2023, recently announced it was pausing operations. Earlier this year, NetEase reportedly shut down Ouka Studios, the developer behind Visions of Mana.
Riot Games’ Lawsuit and Hyper Front’s Legacy
Before its discontinuation, Hyper Front faced legal challenges from Riot Games for its alleged similarities to Valorant. After the lawsuit, NetEase revamped the game’s visuals and relaunched it under a new name in China. However, the rebranded title also failed to gain traction, ultimately leading to its shutdown.
Broader Challenges for NetEase
These developments reflect broader challenges for NetEase as it navigates a competitive gaming market. While the company has reassigned employees and clarified the nature of its recent game closures, the discontinuation of multiple titles in a short span raises questions about its strategic direction.
What Lies Ahead
With high-profile departures, including Visions of Mana director Ryosuke Yoshida leaving for Square Enix, and a series of game shutdowns, NetEase faces increasing scrutiny. The company’s ability to pivot and adapt its strategy will be critical as it seeks to maintain its position in the gaming industry.
Key Points
- Layoff Claims Refuted:
NetEase denied reports of layoffs, clarifying that employees from its Shenzhen office were transferred to other departments instead of being let go. - Game Shutdowns:
Operation Apocalypse, launched in February 2024, was shut down in October due to underperformance. It is one of four games NetEase has discontinued in mainland China, including the local version of Pokémon Quest. - Clarification on Operation Apocalypse:
NetEase confirmed Operation Apocalypse is a standalone game and not a rebranded version of Hyper Front, contrary to earlier reports. - Legacy of Hyper Front:
Hyper Front faced a lawsuit from Riot Games for allegedly copying Valorant. After the lawsuit, NetEase revamped and relaunched the game, but it still failed to meet expectations, leading to its discontinuation. - Studio Closures:
NetEase-owned Worlds Untold announced a pause in operations in late 2023, and Ouka Studios, developer of Visions of Mana, was reportedly shut down earlier this year. - High-Profile Departure:
Visions of Mana director Ryosuke Yoshida left NetEase to join Square Enix, adding to the company’s ongoing challenges. - Competitive Pressures:
The series of game closures and employee reassignments highlights the competitive pressures NetEase faces in maintaining a foothold in the gaming market. - Future Uncertainty:
Despite reassurances about internal restructuring, NetEase’s recent struggles have raised questions about its long-term strategy and ability to adapt to market demands.