Despite a successful new release, the studio’s future appears uncertain as parent company scales back in Japan.
Just days after the launch of Visions of Mana, reports have emerged that Chinese tech giant NetEase is preparing to shutter the game’s developer, Ouka Studios.
According to a report from Bloomberg, the studio has seen mass layoffs, with only a small number of staff remaining. Sources suggest that NetEase is now seriously considering closing the studio altogether as part of a broader reevaluation of its investment strategy in Japan.
A promising studio, a troubled future
Ouka Studios, based in Japan, was established in 2020 and brought together veteran talent from industry heavyweights like Capcom and Bandai Namco. The studio was entrusted with leading development on Visions of Mana, a new mainline installment in the long-running action-RPG series published by Square Enix.
Despite a positive reception for the game following its launch earlier this week, that critical success doesn’t appear to have shielded the team from corporate cutbacks.
Pullback from Japan?
Sources indicate that NetEase is reassessing its expansion efforts in the Japanese game market, citing challenges in producing hit titles and cultural differences between management teams and local developers.
The layoffs at Ouka may be part of a wider strategic shift, as the company appears to move away from its previous approach of rapidly scaling up its presence in Japan.
Tencent also scaling back ambitions
NetEase isn’t the only Chinese powerhouse pulling back. Rival conglomerate Tencent is reportedly cutting investments and withdrawing from multiple project funding agreements in Japan as well.
Insiders point to a clash in creative priorities—with Tencent and NetEase typically seeking large-scale, high-return franchises, while many Japanese developers prefer smaller, more focused projects that carry less financial risk.
It’s also reported that Tencent has become more selective when vetting new studio partnerships, demanding higher output and return potential from collaborators.
Official statements stay quiet
While rumors continue to circulate, both companies have kept their public messaging vague. Tencent told Bloomberg it remains committed to its Japanese partners, while NetEase simply stated that it had “nothing to announce” regarding the situation at Ouka Studios.
