Chinese companies Tencent and NetEase are scaling back investments in Japanese game studios, showcasing challenges in aligning goals and expectations within the industry.
NetEase has let go of developers from Ouka Studio amidst challenges in creating big hits, reflecting a broader concern in the collaboration between Chinese firms and Japanese developers.
The misalignment of goals between Tencent and local developers highlights a critical disconnect; developers prefer lower-risk projects while Tencent seeks global franchises, resulting in unmet expectations.
Despite some successful investments in Japanese studios, including Nagoshi Studio and Grasshopper Manufacture, Tencent and NetEase face significant challenges in achieving anticipated growth in the region.
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