ByteDance Announces Large-Scale Downsizing of Gaming Business, Retaining Only Some Innovative Game Explorations
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ByteDance announced today that its gaming business, Nuverse, will undergo a large-scale contraction—well-performing games already online will be divested while ensuring their operation; for projects not yet launched, except for a few innovative projects and related technical projects, all will be shut down.
Nuverse stated that it will adjust its business direction and organization, focusing more on exploring some innovative games and related technologies. However, it will also ensure the continuous operation of already-launched products, fully safeguarding players' rights.
IT Home found through public information that Nuverse was established in 2019 as ByteDance's game development and publishing brand.
"Competition Core" previously revealed that ByteDance's "optimization adjustment" includes the following:
- On November 26, notify the heads of all in-progress projects of their dissolution.
- Issue formal notices on Monday and complete all termination contract signings and dissolutions, "reportedly giving only one day to complete."
- In addition to N+1 compensation, year-end bonuses, stock options, etc., will also be fully calculated, ensuring "no shortage" in compensation.
According to previous reports, Reuters, Snow Leopard Finance, and others have claimed that ByteDance is seeking to sell its gaming division, Moonton Technology, for no less than $5 billion, with Goldman Sachs hired as the financial advisor (FA) to help find and contact potential buyers.
A source close to ByteDance told Sina Technology that this decision was discussed extensively by business head Yan Shou and ByteDance CEO Liang Rubo. Liang Rubo believes that although the gaming business has achieved some success, ByteDance's gaming division pursued "large and comprehensive" projects in recent years, lacking focus and dispersing resources. Efforts and resources should instead be directed toward more foundational, innovative, and imaginative projects.
In fact, at ByteDance's annual meeting in early 2023, Liang Rubo proposed that the goal for the new year was to "focus" and "be pragmatic." For core businesses like information platforms and e-commerce, investments should be strengthened; for emerging businesses like gaming, education, and PICO, "there should be imagination, but maintain a calm mindset."