NetEase, China’s second-largest publisher of smartphone and PC games, has downsized some of its studios and projects since the start of September amid the Chinese government’s heightened scrutiny of the sector, people with direct knowledge of the matter told the South China Morning Post.
Dozens of employees, including programmers, designers and creative artists at the company’s Shanghai and Hangzhou offices, had been told to look for new assignments inside and outside NetEase, according to one person who declined to be named. No employee has officially been retrenched, the SCMP said.
Like other major video game publishers, Nasdaq and Hong Kong-listed NetEase has multiple studios working on different game projects, allowing them to compete against each other for approvals and the final path to market.
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