NetEase Restructures After Hyper Front Relaunch Fails to Meet Expectations

Correction: Following reports of layoffs, NetEase has informed GamesIndustry.biz that no staff members have been let go, instead being transferred to alternative roles within the company. The publisher has also provided clarification that Operation Apocalypse is, in fact, a distinct game that was launched in February and subsequently shut down in October, rather than a revamped version of Hyper Front. Further clarification is being sought. Originally, it was reported that NetEase had laid off a number of staff due to the underperformance of Hyper Front in China, according to various Chinese sources and publications. The layoffs were said to have affected employees at the company's Shenzhen office. Operation Apocalypse was launched in China on August 30, but was reportedly shut down due to its failure to meet expectations. Although the exact number of layoffs is unclear, sources indicate that it was relatively limited. Operation Apocalypse is one of four games that NetEase has announced it will discontinue in mainland China, including the local version of Pokémon Quest. Hyper Front had previously been the subject of a lawsuit by Riot, alleging that it had copied Valorant, resulting in its shutdown. The game was later relaunched with revamped visuals under a new name in China. GamesIndustry.biz has reached out to NetEase for comment, but had not received a response at the time of publication. Additionally, NetEase-owned studio Worlds Untold announced that it would be pausing operations, having been established in 2023. Earlier this year, NetEase also reportedly shut down Visions of Mana developer Ouka Studios, with director Ryosuke Yoshida announcing his departure to join Square Enix.