Insiders say its due to high costs and Chinas maturing games industry (NetEase)Despite signs of it retreating from overseas investments, publisher NetEase says it remains committed to its plans for global expansion.The recent layoffs at the US development team for Marvel Rivals were a shock to everyone, considering how successful the online shooter has been.Although it did come after Chinese publisher NetEase made numerous cuts at other Western studios it owns, as well as shutting down the developer behind Visions Of Mana the very day the game launched.Following the Marvel Rivals news, reports emerged that NetEase is looking to abandon some, if not all, of its international investments; something NetEase has so far denied.According to a report by GamesBeat, industry insiders believe NetEase has decided it wants to stop relying on overseas staff to make its games, which could result in further layoffs and studio closures.The supposed reasons for this are twofold. The first is, unsurprisingly, due to rising development costs, particularly those for US developers.The second is because Chinas own games industry has matured much more quickly than expected, to the point where its started to enjoy genuine international success.Aside from free-to-play fare like Genshin Impact, the recent success of Black Myth: Wukong (which sold 10 million copies in just three days) has demonstrated the country can also pump out popular AAA console games.What game studios does NetEase own?Aside from its own internal development studio, NetEase Games, NetEase owns an additional 20 studios across the US, Europe, and Asia. Those studios are:Grasshopper Manufacture Suda51s No More Heroes studioPinCoolNagoshi Studio founded and run by Yakuza series creator Toshihiro NagoshiNetEase Games TokyoGPTRACK50 StudioStudio FlareQuantic Dream the studio behind Detroit: Become Human and the upcoming Star Wars EclipseJackalyptic GamesT-Minus Zero EntertainmentAnchor Point StudiosNetEase Games North AmericaBulletFarmNetEase Games MontrealSkyBox Labs co-developer on Halo Infinite and multiple Age Of Empire gamesBad Brain Game StudiosSplicedRebel Wolves founded by former CD Projekt staffNetEase Games KoreaLiquid SwordsFantastic Pixel CastleSonys also started bringing large scale Chinese games to the PlayStation 5, including this years action role-player Lost Soul Aside and the recently revealed Tides Of Annihilation. So, why rely on overseas developers when Chinese studios can make them instead and more cheaply.Its possible the tariffs imposed against China by US president Donald Trump have something to do with it too. Industry experts had warned months ago these tariffs could lead to increased prices for consoles and games, and they will also impact Chinese game studios and thus the wider industry which makes considerable use of Chinese developers for support work.As such, the Entertainment Software Association (ESA), which represents all the big name game publishers, has publicly asked to be consulted on such tariffs to avoid causing significant harm to everyday Americans and to one of the fastest growing entertainment sectors in the United States.In a statement sent to GamesBeat, though, NetEase addresses the general issue of its future plans but manages to avoid answering the key question.Our two-pronged approach, proposed in 2022 (combining self-research and investments to explore overseas markets), is still actively progressing and yielding positive results, reads the statement.As far as overseas business efforts are concerned, NetEase has not wavered in its global expansion plans, it reads, highlighting success stories like Marvel Rivals and survival game Once Human.More TrendingThese projects demonstrate NetEases ability, along with our talented development teams, to produce high-quality games loved by players worldwide.At no point do they deny planning to shut down all or most of their Western Studios, but the do admit to scaling down two of studios at the end of 2024.This represents only a small portion of our overseas studio portfolio. Our studios in North America, UK, Spain, and Japan all continue to refine and develop their ongoing game projects, they insist.NetEase also refuted the idea that the aforementioned tariffs have had any effect on its strategy, or at least not yet. We are mindful of any developments in international trade. However, our decisions have been based solely on business evaluations and not influenced by other factors. Could NetEases other studios like the No More Heroes developer be hit with layoffs too? (Grasshopper Manufacture)Emailgamecentral@metro.co.uk, leave a comment below,follow us on Twitter, andsign-up to our newsletter.To submit Inbox letters and Readers Features more easily, without the need to send an email, just use ourSubmit Stuff page here.For more stories like this,check our Gaming page.GameCentralSign up for exclusive analysis, latest releases, and bonus community content.This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. 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