Chinese game publisher NetEase, which recently laid off its Seattle division following the massive success of Marvel Rivals, reportedly wants to pull all development and resources out of the United States. According to a report, the rising tension between the United States and China following President Donald Trump’s tariff hikes has resulted in rising costs and friction.
The report claims that NetEase is prepping to unload all of its overseas game properties amid China’s retaliation to these new U.S. tariff hikes. It says that the Chinese video game firm is planning to dismantle all studios and pull out of investments in other regions. NetEase has denied the case.
NetEase is “losing its will to make games using overseas staff”, according to sources. Part of this reason is due to the rising costs of U.S. developers. Sources claim that NetEase says that its Chinese-based developers have “matured enough to make triple-A games” as the company focuses on hiring cheaper, skilled labour instead of outsourcing to other countries.
At the moment, it isn’t clear what NetEase plans to do with its assets. If the company plans to pull out, it will have to sell its studios and lay off hundreds of workers. Many of these will cost them a lot of money and will likely result in a loss.
NetEase has denied the claims. In a statement, the company says it has not wavered its two-pronged approach on global expansion plans. Back in 2022, the company expressed its goals to grow in self-research and global investments by exploring overseas markets. It says its goals and visions remain consistent.
While the recent Seattle layoffs did happen, it was due to scaling down staff. A spokesperson says:
“As part of our investment strategy, we started scaling down two of our studios at the end of 2024. This decision was based purely on business evaluations and was not influenced by other factors. And this represents only a small portion of our overseas studio portfolio. Our studios in North America, UK, Spain, and Japan all continue to refine and develop their ongoing game projects. Some additional background information that has not yet been shared to clarify our approach”
The company says it will continue to invest in the global market and support all the studios it currently has under its umbrella regardless of whether they are domestic or international.
“We are very open and aim to leverage our company’s strengths and accumulated expertise to support all developers. In order to achieve this vision, we have implemented an evaluation process, which applies equally to all NetEase studios globally – both domestic and overseas,”
When it comes to the tariff trade way, NetEase says the company’s decisions have been based solely on business evaluations and not influended by these external factors.
“Regarding the tariff trade war, yes of course we are mindful of any developments in international trade. However, our decisions have been based solely on business evaluations and not influenced by other factors. We highly respect our gaming community in the US and their love and enthusiasm for our games is valued and appreciated.”
Source: Gamesbeat
