Visions of Mana Developers to be Shut Down

NetEase, a Chinese video game company, has reportedly laid off most of the staff at Ouka Studios, the developer behind Visions of Mana, and plans to close the studio entirely. According to sources cited by Bloomberg, the studio, which was established in 2020, will continue to operate with a small team until its final projects are completed. However, Ouka Studios' closure is said to be part of a broader shift by major Chinese companies like NetEase and Tencent, who are moving away from a focus on the Japanese market.

Bloomberg also reported that Tencent is re-evaluating its investments in Japanese video game developers, having already withdrawn from several funding deals. For instance, it secured the rights to develop and publish the mobile version of the anime-inspired game Blue Protocol, but on August 28, Bandai Namco announced that Blue Protocol would be shut down entirely, with its global release, which was to be managed by Amazon Games, canceled.

One insider noted that the success of Black Myth Wukong, a game from a smaller Chinese developer that sold 10 million copies in just three days, has motivated NetEase and Tencent to focus more on domestic investments. These companies reportedly found their visions to be increasingly misaligned with those of the Japanese developers they had initially sought to partner with.

When asked for comment, NetEase told Bloomberg it had "nothing to announce" about Ouka Studios' closure, while Tencent stated it is "always making necessary adjustments to reflect market conditions."

The video game industry has seen widespread layoffs over the past two years, with major companies like Microsoft, Sony, and the troubled Embracer Group not only cutting jobs but also closing entire studios. In May 2024, Microsoft shut down Arkane Austin, the developer of Redfall, along with Tango Gameworks, the studio behind Hi-Fi Rush and Ghostwire Tokyo. Similarly, Embracer Group closed Saints Row developer Volition in 2023, and Sony shut down its London Studio in March 2024, affecting 900 employees across the PlayStation division.