ByteDance, the parent company behind TikTok, has initiated significant layoffs in its gaming division, causing uncertainty among Nuverse employees, as reported by Reuters.
The gaming branch, Nuverse, is undergoing substantial downsizing after a couple of years of moderate performance. A ByteDance spokesperson informed Reuters that they regularly evaluate their ventures and are making adjustments to focus on long-term strategic growth. As a result of this recent evaluation, they've made the tough decision to restructure their gaming business.
In 2021, Nuverse had a workforce of approximately 3,000, a number that has remained steady in recent years.
Also read/watch - Union budget 2024: Experts push for higher tobacco taxes says report
ByteDance had acquired Moonton Technology, a Shanghai-based gaming studio, in a $4 billion deal. Moonton gained acclaim for its mobile multiplayer online battle arena (MOBA) game Mobile Legends: Bang Bang, launched in July 2016. Reports suggest that ByteDance is exploring options to sell Moonton.
Sources indicate that ByteDance will halt ongoing gaming projects and is considering selling existing gaming titles within Nuverse. Among Nuverse's standout games is the online card game "Marvel Snap," developed by the US-based studio Second Dinner. Other titles include "One Piece: The Voyage" and "Crystal of Atland."
Despite these developments, TikTok remains banned in India. The ban, initiated in June 2020 due to national security concerns following a conflict with China, allowed Instagram to capture a substantial market share. Several TikTok imitations also emerged as significant players in the newly available market.