TikTok owner ByteDance has started talking with buyers, including Chinese tech giant Tencent, to sell its gaming arm.
As reported by AFP on Tuesday, January 9, 2024, a spokesperson from the company revealed that ByteDance is engaged in talks regarding the sale of Nuverse, a video game publisher and subsidiary of the Beijing-based tech company.
ByteDance had previously considered Nuverse a critical element in its efforts to compete with Tencent, a global gaming industry leader and one of China’s major media conglomerates.
The decision comes in the wake of significant downsizing in ByteDance’s gaming division in November, which involved substantial layoffs affecting hundreds of positions.
This strategic move represents a step back from the highly competitive gaming sector, valued at $42.2 billion last year. ByteDance’s gaming venture, Nuverse, fell short of the anticipated commercial success since its launch in 2019.
China stands as the world’s largest gaming market, with Tencent holding the global revenue leadership in the industry. However, Tencent confronts escalating challenges as regulatory authorities tighten restrictions on gaming, particularly for the younger demographic.
Since 2021, individuals under 18 have been restricted to online gaming between 8:00 p.m. and 9:00 p.m. on Fridays, Saturdays, and Sundays during the school term. Similar limitations will be implemented for users under 18 during the upcoming Spring Festival Holiday through a real-name verification system linked to national ID cards, according to Tencent.
In a WeChat post on Tuesday outlining the regulations, Tencent expressed the hope that “adults and children alike can play games with self-discipline.”
Beijing recently signaled a potential revision of newly proposed online gaming rules, focusing on limiting in-game purchases and curbing excessive gaming behavior. The initial draft led to a sell-off in major tech stocks as investors reacted to the regulatory impact.
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