TikTok owner lays off hundreds, exits gaming sector

ByteDance's recent actions signify a step back from the gaming sphere

by Sead Dedovic
TikTok owner lays off hundreds, exits gaming sector
© Getty Images News/Drew Angerer

ByteDance, which owns TikTok, is aiming to reorganize its gaming department, which might lead to job cuts and the potential selling off of some games, as reported by Reuters. The company intends to shut down its Nuverse gaming brand and part ways with several hundred employees.

ByteDance will stop development on unreleased games by December and consider selling off games that are already available. ByteDance's recent actions signify a step back from the gaming sphere, which is currently under the strong influence of Tencent and NetEase Inc.

Sources informed Reuters that ByteDance doesn't plan to re-engage with the $185 billion global video game market. Initially positioned to challenge Tencent, ByteDance is stepping back from its gaming ambitions. Furthermore, there's contemplation surrounding the potential sale of Shanghai Moonton Technology Co., acquired for $4 billion in 2021.

ByteDance spokesperson

A ByteDance spokesperson stated, "We regularly review our business and have made the tough decision to restructure our gaming arm for long-term strategic growth." ByteDance has been refocusing on core businesses like short videos and e-commerce, shutting down internal studios and cutting jobs over the past year.

Despite these shifts, games like Crystal of Atlan and Marvel Snap, developed by American studio Second Dinner, will continue. Tencent continues to lead the gaming industry, capitalizing on WeChat's vast user base and expanding its content through acquisitions.

TikTok and their policy

TikTok is doing great things lately. In a short period of time, they gained enormous popularity and broke many records. The owners of this company had clear goals from the very beginning and knew what to expect.

They turned out to have made a great move. The company is growing day by day and has a tendency to grow in the coming period. Their platform, all about putting users first, has sparked creativity across the globe, cultivating a diverse community. The number of users is growing day by day!