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Update: GameFile

NetEase is actively shopping around more of its non-Chinese studios—many of the very same ones it announced over the last three years—two people familiar with the company's efforts tell Game File. Neither individual was authorized to speak about NetEase's plans publicly. One of Game File's sources says NetEase plans to divest itself of the majority of its overseas teams, leading to the potential closure of more than a dozen game studios, if they can't secure new post-NetEase funding.

A NetEase rep declined to comment to Game File on these cuts, let alone the scale of more than a dozen that I've heard about. But they did say that "all studios and projects are in constant review and evaluation, and NetEase will determine changes needed to be made throughout that process." In a season of hurt for much of the game industry, a further NetEase pullback is likely to deliver pain around the globe.

A must-read investigation on NetEase's spending pullback published earlier today by Bloomberg also suggested studios will get a bit of an off-ramp. The report notes that new NetEase studios in Japan, including one led by former Sega hit-maker Toshihiro Nagoshi (Super Monkey Ball, Yakuza/Like a Dragon), "have been given time to wrap up ongoing projects" but are not receiving any more funding.

Game File also understands that the Japanese studios are among those NetEase plans to divest.

In an industry earthquake, NetEase plans to cut more all-star game studios