Chinese gaming giant NetEase opens first US studio in Austin

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NetEase, the second largest gaming company in China and sixth largest in the world there is opened his first studio in the USA in Austin as China’s gaming industry slows down.

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Archrival Tencent was one step ahead in its expansion into North America. TiMi, Tencent’s cash cow studio best known for mobile blockbuster Honor of Kings, has begun hiring in Los Angeles. back in 2020. Last year it added base in Montreal.

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Chinese gaming giants are moving overseas at a time when their domestic market is under increasing scrutiny from regulators. Over the past few years, China has restricted play time for minors, slowed down the regulatory approval process for games, and introduced stricter content regulations.

Such requirements inevitably reduce the profits of gaming companies. Many small studios struggling to obtain regulatory licenses due to lack of funding or resources have turned to overseas markets in search of growth.

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In 2021, the sales revenue of China’s gaming industry was nearly 300 billion yuan ($45 billion), up 6.4% from last year, although the growth rate was down 15% from the previous year.

Given the internal problems, it is not surprising that the country’s giants are looking for new ways to grow. NetEase’s new American studio called Jackalope Games is headed by Jack Emmerta veteran MMORPG who has worked on projects such as City of Heroes, Neverwinter, Star Trek Online and DC Universe Online.

According to NetEase, the studio will operate independently and maintain creative autonomy in developing and publishing games. It will work with both PC and console games and will be recruiting worldwide, although it has not been revealed how many people it will recruit.


Credit: techcrunch.com /

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