ByteDance has said it will “restructure” its video-gaming business, after failing to gain market share against rivals Tencent and NetEase.
“We’ve made the difficult decision to restructure our gaming business,” ByteDance said on Monday.
The social media giant pushed into gaming in 2019, hiring developers to build self-developed games and later snapping up independent studios, including Moonton and Pico.
But the TikTok owner is now significantly scaling back the gaming unit, affecting hundreds of jobs, according to a person familiar with the matter.
The company struggled to gain market share from Tencent and NetEase, which dominate the 710mn-strong Chinese gaming market.
“Gaming was a focus in 2021, but it has become less of a priority,” the person said.
