The Chinese gaming giant, NetEase, has sparked concerns with recent actions suggesting a significant retreat from its overseas investments. Despite rumors of divesting all international holdings, the company denies dismantling its global presence. This move, if true, could have profound implications for the global gaming industry, particularly in the United States. However, NetEase insists that it remains committed to its international expansion plans while making strategic adjustments based on business evaluations.

Rumors of Retreat and Their Implications

Speculation about NetEase's withdrawal from overseas markets has been fueled by layoffs and the closure of certain studios. The Seattle-based team behind Marvel Rivals, which generated $136 million in its launch month, was recently laid off. Industry insiders suggest this is part of a broader trend where NetEase is losing interest in using foreign talent due to high costs and the growing capabilities of Chinese developers. The success of games like Black Myth: Wukong demonstrates that China can produce triple-A titles at lower costs.

This shift could lead to a significant restructuring of NetEase's international operations. While some sources claim that NetEase plans to exit all international investments, including wholly-owned studios, the company maintains that it is only scaling down select studios. The decision to scale back is reportedly driven by business evaluations rather than geopolitical tensions. Nevertheless, the impact on the global gaming industry, especially in terms of job losses and studio closures, cannot be understated. Over 34,000 people have already lost their jobs in the last 2.5 years, and more layoffs are anticipated.

NetEase's Commitment to International Expansion

In response to these concerns, NetEase has issued statements affirming its commitment to global expansion. The company emphasizes its "two-pronged" approach, combining self-research and investments to explore overseas markets. Recent launches like Once Human and Marvel Rivals showcase NetEase's ability to develop high-quality games loved by players worldwide. For 2025, the company has an extensive pipeline of titles across various genres, including FragPunk and Ananta.

NetEase also highlighted its ongoing projects in North America, the UK, Spain, and Japan, indicating that these regions remain integral to its strategy. The company aims to establish unified goals across all studios, ensuring consistent quality and long-term development. Trade wars and tariffs have not influenced its decisions, which are based purely on business evaluations. Furthermore, NetEase respects the U.S. gaming community and values their enthusiasm for its games. The company remains open to leveraging its strengths to support all developers globally, implementing evaluation processes that apply equally to domestic and overseas studios.