Tencent and NetEase Scale Back Japanese Investments

Ouka Studios, developer of Visions of Mana, faces closure as Chinese firms reassess strategies.

NetEase has laid off most staff at Ouka Studios, with plans to shut down the developer.
Tencent and NetEase are reducing investments in Japan due to lack of major hits.
Both companies continue partnerships with major Japanese firms like Capcom and Bandai Namco.
Tencent is frustrated with local developers' focus on smaller projects over global franchises.
The shift comes as the Chinese gaming market shows signs of revival.