SWIFT DAILY NEWS
IMG 4615

TikTok Owner ByteDance Cuts Gaming Division Jobs

Share this article

By Caroline Kanshabe

ByteDance has confirmed that it will significantly downsize its gaming business after reports of job cuts.

The Beijing-based company, which also owns popular social network TikTok, entered the gaming market in 2019 to compete with industry leader Tencent.

But it has failed to grab market share.

The BBC understands that games with active players, such as Crystal of Atlan and Earth: Revival will continue. Titles which have not yet launched will be shut down in December.

The decision will likely impact hundreds of employees.

A spokesperson from ByteDance told the BBC the company regularly reviews its business and it has “made the difficult decision to restructure our gaming business”.

The global video game market was estimated to be worth $217bn (£172bn) last year, according to market research and consulting company Grand View Research.

ByteDance’s creation of its gaming division Nuverse in 2019 was widely seen as a major push into a once booming sector.

In 2021, the company formalised its status as one of six business units under a broader structural overhaul.

To build up production capacity, Nuverse acquired external studios such as C4games.

But Nuverse’s performance has been patchy with none of its games becoming a commercial hit.

The latest move marks a retreat from the competitive video gaming sector.

ByteDance’s competitor Tencent is the world’s biggest gaming company in terms of revenue.

Formed in 2012, ByteDance created the global smash-hit app TikTok which has an estimated 1.1bn active monthly users.

Its massive popularity has meant it has been scrutinised by governments around the world, including in the US and China.

During his term, US President Donald Trump regularly attacked ByteDance, accusing TikTok of being a threat to US national security.

Politicians and officials raised concerns about users’ personal data being passed to the Chinese government.

TikTok has denied accusations that it shares user data but its CEO Shou Zi Chew faced hours of questioning at a US congressional hearing in March.

There has been growing pressure on ByteDance to spin off its shares in TikTok or risk facing a ban.

Source: BBC


Share this article

Related posts

End Of 4Odays? Obongi District Top Bosses Arrested For Embezzling Ugx100M

Swift Daily News

Pleading Guilty Wouldn’t Save You! Court Martial Sends 16 NUP Supporters Back To Jail For 3mnths

Swift Daily News

Just In: Wagner Mercenary Boss Prigozhin Killed With His Closest Commandos After Russia Airforces Shooting Down His Private Jet

Swift Daily News

Uganda Beats Kenya 2-1 To Clinch 2023 CECAFA U18 Title

Caroline Kanshabe

Just In: ICC Issues Arrest Warrant For Israel’s Netanyahu Over Excessive War Crimes

Swift Daily News

dfcu Bank At It Again: Ordered To Cough Over UGX2.4 Billion To Tycoon Sudhir For Staggering On His Buildings

Swift Daily News

Leave a Comment