According to four people familiar with the situation, TikTok maker ByteDance is set to internally announce on Monday the closure of its Nuverse gaming brand and complete withdrawal from mainstream video games.
According to the people who declined to be identified because the information is not public, the Chinese technology firm has no plans to return to the $185 billion global video game market.
ByteDance’s creation of Nuverse in 2019 was widely regarded as a significant push into global gaming as well as a strategic component of its competition with domestic rival Tencent Holdings 0700.HK, the world’s largest gaming corporation.
However, Nuverse’s performance has been inconsistent. Its most well-known game is “Marvel Snap,” an online card game with a cult following but no commercial success.
“One Piece: The Voyage” and “Crystal of Atland” are two other titles.
In 2021, ByteDance formalized Nuverse’s status as one of its six business units as part of a larger structural overhaul.
According to the sources, ByteDance will tell employees to stop working on unreleased games by December and will look for ways to divest from titles that have already been released.
According to the people, the decision will affect hundreds of employees, some of whom learned about the move over the weekend.
Casual gaming brand Ohayoo, whose games are featured on Douyin – TikTok’s sister app in China – will be unaffected, as will casual games that run on TikTok, according to one of the sources.
ByteDance did not respond to a request for comment from Reuters.