Report Suggests NetEase May Offload Additional Overseas Studios, Including MMO Developer Jackalyptic Games

Earlier this week, we analyzed fiscal reports and expert insights regarding NetEase, following the company’s decision to shut down a Seattle-based studio supporting Marvel Rivals. In summary, there is growing speculation that NetEase may be scaling back its overseas ambitions. New evidence now suggests not only a pause in overseas investments but also a potential withdrawal from Western markets.

A recent Bloomberg article includes insider reports about NetEase CEO William Ding, who is described as “frequently changing his mind.” He has reportedly hired “a small group of recent finance sector graduates” to oversee key titles directly under his supervision and has allegedly mandated employees in China to work until 9:00 p.m.—a claim NetEase denies.

Further reports indicate that NetEase is divesting from studios outside China: Japanese studios backed by NetEase are reportedly being allowed to complete ongoing projects but will not receive marketing or promotional support. Insider sources told Game File that NetEase is actively seeking to sell most of the studios it has backed or acquired over the past three years. One such studio is Jackalyptic Games, led by Jack Emmert, which is developing an MMO set in the Warhammer 40K universe.

When questioned about potential studio closures, a NetEase spokesperson refrained from directly addressing the plans but stated, “All studios and projects are under constant review and evaluation, and NetEase will determine necessary changes as part of that process.”