Chinese Govt Crack Down Stagnates ByteDance’s Gaming Ambitions

ByteDance, the Chinese startup that owns TikTok, attempted to utilize its one billion subscribers to enter the gaming market in May. In experiments conducted in Vietnam, the company experimented with a system that allowed users to start small, “bite-sized” games that could be played in minutes as opposed to hours. Through its subsidiary, Nuverse, ByteDance also intended to create “mid- and hard-core” video games. However, the latest report indicates that the company is rolling back its ambitions dramatically as the government continues to pressure the gaming industry.

Chinese Govt Crack Down Stagnates ByteDance’s Gaming Ambitions

The acquisition of Shanghai-based developer Moonton Technologies was intended to be a major component of ByteDance’s expansion strategy, and the business went so far as to do so in order to jumpstart its game development efforts. However, recent developments have left those plans on uncertain ground. According to the SCMP, ByteDance has begun “aggressively reducing” its gaming activities. Wushuang Studio, another Shanghai-based developer owned by ByteDance, is claimed to have lost the majority of its employees due to a mix of layoffs. Similar layoffs have occurred at Jiangnan Studio in Hangzhou.

ByteDance is retaining employees for titles that have already been released, but the revelation makes it very obvious where the company’s gaming goals are headed. Attempts to transform TikTok into a gaming app are encountering the same obstacles as every other Chinese gaming business in recent years.

In July, the Chinese government had only allowed 172 games for distribution since the beginning of 2022, which was about 600 fewer than the 755 games it had approved during the same period in 2021. This year saw the first annual fall in gaming income since 2008. It is not conducive to bold actions in the gaming sector, which is a major reason why ByteDance has chosen a new gaming strategy of “building muscle and shedding fat.”

Obviously, ByteDance is still an unfathomably enormous company. It is possible that the corporation is simply trimming its sails in preparation for a stormy era in Chinese technology, and will focus on other endeavors until the Chinese government loosens its grip on the industry.

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