Recent downsizing at TikTok ByteDance has rocked the gaming community in China.
Previously an aggressive business acquirer and lessor, ByteDance is said to have laid off many junior employees at the casual and hyper-laid back developer Ohayoo.
The studio was established in 2018 with the aim of capturing users of its short video apps, according to a former employee speaking with South China Morning Post.
Its games have been downloaded over 500 million times.
The first 100 employees are believed to have been affected.
Studio Ohayoo has around 350 employees, and a report on Leiphone says the studio has asked 79 employees to return home or apply for other positions within the company.
However, the report noted that some internal positions are limited, which means that many employees will most likely leave eventually.
The new Chinese rules
After President Xi Jinping pointed out that gambling addiction is a problem for society, games now require players to create accounts with ID, and children are limited to playing three hours a week only on the day. weekends and holidays.
Since July, China’s games regulator has suspended license approvals for new games.
The effect on casual games has been severe. This is largely because they have fewer loyal users than hardcore console games.
Prior to November 2020, Ohayoo had released nine casual games that each grossed at least $ 15 million in revenue. This was according to Xu Peixiang, the studio’s former general manager, who has since resigned in August.
ByteDance subsidiary Nuverse acquired Chinese developer C4games in April 2021, while also spending $ 4 billion to purchase Mobile Legends: developer Bang Bang Moonton in March