ByteDance Exits Gaming Sector, Shuts Down Nuverse After Billion-Dollar Struggle
ByteDance, the parent company of TikTok, is set to withdraw from the gaming sector. The company has struggled to gain a significant foothold in the gaming industry despite investing billions in various gaming companies and acquiring studios like Moonton in 2021.
ByteDance's gaming division, Nuverse, will be shut down as part of this strategic exit. Nuverse, a subsidiary of ByteDance focused on game development and distribution, was established within the company, although the exact founding date is not publicly known. This move comes after ByteDance spent approximately RMB 30 billion (USD 4.2 billion) between 2019 and 2022, investing in over 19 gaming companies. However, these investments did not translate into a substantial market share or sustained growth in the gaming industry.
ByteDance is now considering the sale of its existing gaming titles and has hundreds of gaming-related jobs on the line. Projects in development will also be discontinued. This significant pullback suggests a refocusing on ByteDance's core businesses, such as short video platforms and e-commerce.
Meanwhile, ByteDance's primary competitor, Tencent, continues to dominate the gaming sphere. In the third quarter of 2023, Tencent experienced a 5% growth in domestic gaming revenue, further cementing its leadership position.
ByteDance's withdrawal from the gaming sector is a notable shift in strategy. The company's struggle to compete with industry leaders like Tencent has led to this decision, which will see the discontinuation of gaming projects and the potential sale of existing gaming titles. This move signals a renewed focus on ByteDance's core businesses and a re-evaluation of its gaming investments.
