Overview

• 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.