ByteDance, the undisclosed Chinese tech behemoth renowned for its ownership of TikTok, is set to undergo a substantial restructuring of its gaming operations, with a particular focus on Nuverse, the entity responsible for publishing ‘Marvel Snap,’ as indicated by financial insiders.
This development, first unveiled by Bloomberg, Reuters, and other tech-centric outlets such as The Information and The Verge on Monday, signifies ByteDance’s withdrawal from the mainstream video game sector, precipitating the elimination of approximately 1,000 positions.
In response to media inquiries, a representative from ByteDance elucidated, “We regularly review our businesses and make adjustments to center on long-term strategic growth areas. Following a recent review, we’ve made the difficult decision to restructure our gaming business.” Variety has also sought commentary from ByteDance on the matter.
Nuverse, the division overseeing the majority of ByteDance’s games, has reportedly communicated to its staff that it will cease the development of nearly all games yet to be launched. Additionally, two of its recently introduced titles, the anime-style role-playing game “Crystal of Atlan” and the survival game “Earth: Revival,” may be offloaded to other publishers. However, the company intends to retain its smaller-scale social gaming initiatives playable within Douyin, the Chinese counterpart to TikTok.
‘Marvel Snap,’ a digital collectible card game created by Second Dinner and published by Nuverse, is among the titles affected by this strategic shift.
According to Bloomberg, ByteDance is contemplating the potential sale of Shanghai Moonton Technology, a gaming company it acquired for $4 billion in 2021.
These maneuvers signal ByteDance’s renewed emphasis on social video platforms—TikTok and Douyin—and e-commerce. The company has also made forays into music streaming and artificial intelligence in the current year.
The gaming sector in China has faced escalating regulatory scrutiny over the past three years, with a particular focus on safeguarding the well-being of young users. Authorities have imposed stringent measures, including delays in license approvals and monetization permits, coupled with stipulations mandating platforms to restrict minors’ gaming activities. Although there are indications of a more lenient regulatory environment, analysts anticipate a deceleration in the growth of the gaming market compared to previous years.
ByteDance, being a privately held company, is not obligated to disclose its financial status publicly. Nevertheless, occasional disclosures to investors have been reported by financial media. Reports suggest that ByteDance is approaching Meta, the owner of Facebook, in terms of revenue, with $85 billion reported in 2022 and $54 billion for the first half of 2023.
