Ouka Studios will reportedly be shut down in the coming months, as parent company NetEase scales back its investments in Japanese game studios.
That’s according to Bloomberg, which recently alleged only a “handful of jobs” remain at Ouka Studios, with a skeleton staff now overseeing the post-launch plans of Visions of Mana – a game which just launched at the end of August 2024.
Based on reporting from Bloomberg, Ouka did not get a chance to enjoy the success of its latest release. NetEase has reportedly been “cutting staff at Ouka for a while,” as it looked to reduce its investments.
When asked of this reported move, NetEase told Bloomberg it had “nothing to announce” about a potential closure, and it was “seeing progress” in the many Japanese studios it’s invested in.
Notably, Ouka was only established in 2020, and Visions of Mana required much time to realise its scope and vision. There was high hopes for the studio and its latest creation, particularly as veterans of Capcom and Bandai Namco were part of the team.
Publishing rival Tencent is reportedly making similar moves, due to a “mismatch in ambition” between the company and local Japanese studios. Bloomberg believes the issue is in Japanese studios aiming for “smaller-scale, lower-risk projects” while Tencent aims for blockbuster tentpole franchises which can become global smash hits. Tencent’s ambitions are reportedly now set with “higher goals and expectations” leading to more stringent investment decisions.
Tencent and NetEase remain committed to the Japanese market, with investments in Capcom and Bandai Namco, but based on Bloomberg‘s reporting, it does appear there will be a new reluctance to invest in smaller, emerging studios going forward.
“In supporting studios outside China, we craft our strategy based on our goal of providing better gaming experiences to local and global players,” NetEase said in a statement to Bloomberg. “[We are] thus always making necessary adjustments to reflect market conditions.”
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By Leah J. Williams 2 September 2024
