Chinese giants are beginning to lose interest in Japan

The success of Chinese and Korean games, which are beginning to take away Japan's leadership in the video game industry when it comes to Asian products, is causing Tencent Holdings and NetEase to lose interest in Japanese studios that were once viewed with great interest due to their potential.

After several years of investing in Japan, during which the two Chinese giants funded studios and projects, reports of layoffs and even potential closures are now emerging. 

NetEase has laid off staff at Ouka Studios in Tokyo, a production company that opened in 2020 but is now poised to shut down.

Tencent has halted further funding and will stop investing in Japanese studios after several years of unfruitful efforts. Tencent recently suffered a major setback when it was announced that the days of Blue Protocol, in which it had invested funds, were numbered.

Both companies deny that they are losing interest in Japan, where they will maintain strategic investments in major companies, but their investments in new properties crafted for a global audience may well be over.

China is already producing global hits that Japan just cannot seem to match. Games like Black Myth: Wukong (created by former Tencent employees) are making headlines worldwide and sparking enthusiasm and high spirits among local developers.

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Cover image author: Game Science. Cover image source: mp1st