ByteDance’s shift in focus from gaming has been solidified by the recent news that two of its studios, previously working on unreleased games, have now been acquired by Tencent. The social media powerhouse, known for platforms like TikTok, initially made a significant foray into the gaming industry before swiftly changing course.
Given the immense profitability seen by Chinese tech giants like Tencent, Netease, and miHoYo in the gaming sector, abandoning gaming entirely would have been a costly misstep. Instead, ByteDance opted to maintain a presence in the industry to keep their options open and not miss out on potential revenue.
ByteDance found success with its Nuverse publishing platform and games like Marvel: Snap. Plans were in place for further game development and investments, including the establishment of its casual games developer, Ohayoo (despite layoffs in 2021). However, the company struggled to maintain enthusiasm for future projects, leading to the decision to offload Moonton, the creator of Mobile Legends, and publicly exit the gaming business.
Recent reports indicate that two gaming teams formerly under ByteDance’s umbrella have now become part of Tencent through a merger, forming a new entity named Saluosi. This move signifies a shift in the landscape where companies like ByteDance are stepping back from gaming while rivals like Tencent continue to expand their presence.
While the decision may appear strategic in the short term, only time will tell if ByteDance’s pivot away from gaming will prove to be a wise move in the long run. The gaming industry is a complex and competitive space, requiring experience and foresight to navigate successfully.
Overall, ByteDance’s venture into gaming underscores the challenges faced by tech companies seeking quick wins in a demanding industry. As the company redirects its focus, it remains to be seen how this shift will impact its overall strategy and future prospects.
