NetEase’s continued efforts to reduce costs could lead to even more studios facing closure in the near future. The Chinese gaming giant is exploring options to offload numerous overseas subsidiaries, with over a dozen developers potentially at risk if a buyer isn’t found.

In a recent financial report, NetEase announced a 1.5% year-over-year revenue growth for Q4 2024, but a startling 2.6% decline in gross profit, failing to meet analyst expectations. Reports have emerged that hinted at the near cancellation of Marvel Rivals and detailed aggressive cost-cutting measures underway across its international studios, a shift spearheaded by CEO William Ding. He aims to refocus the company’s resources on a more selective range of titles.

Summary

• NetEase’s cost-reduction strategy may impact more of its studios soon.
• The company is reportedly looking to divest various overseas subsidiaries.
• If no buyer is found, numerous developers may shut down without releasing any titles.

NetEase Studios at Risk

1. Anchor Point Studios (Spain)
2. Bad Brain Game Studios (Canada)
3. BulletFarm (California, U.S.)
4. Fantastic Pixel Castle (U.S.)
5. GPTRACK50 Studios (Japan)
6. Grasshopper Manufacture (Japan)
7. Jackalyptic (Texas, U.S.)
8. Jar of Sparks (Washington, U.S.)
9. Liquid Swords (Sweden) - Partially owned by NetEase
10. Nagoshi Studio (Japan)
11. NetEase Games Montreal (Canada)
12. NetEase Games North America (California, U.S.)
13. NetEase Games Korea (South Korea)
14. NetEase Games Tokyo (Japan)
15. PinCool (Japan)
16. Quantic Dream (France)
17. Rebel Wolves (Poland) - Partially owned by NetEase
18. Skybox Labs (Canada)
19. Spliced (UK)
20. T-Minus Zero Entertainment (Texas, U.S.)
21. Worlds Untold (Canada)

The future of these studios hangs in the balance as the company continues to evaluate its portfolio amid ongoing financial pressures.