A difficult but crucial restructuring is underway at Sharkmob, a Tencent-owned studio, with an unknown number of jobs hanging in the balance. This news follows similar cuts at Funcom and the closure of The Outsiders, but the development of their sci-fi shooter, Exoborne, will continue.
Sharkmob's Malmo studio, currently working on Exoborne, is facing planned job losses. The London studio met a similar fate in 2024, with local staff let go after an unannounced game was canceled. In a statement, the company acknowledged the "challenging environment" for game developers, describing the restructuring as a "difficult but necessary" step to focus on Exoborne's development and ensure sustainable growth.
Exoborne, Sharkmob's second release, recently completed its second public playtest in October, but a release date remains unknown. The company has been tight-lipped about the details, citing an ongoing employee consultation process, which is standard under Swedish employment law.
Tencent, the Chinese giant that owns Sharkmob, has also made cuts at its Funcom studio last month, despite the successful launch of Dune: Awakening. As a result, The Outsiders, the studio behind Metal: Hellsinger, was closed. Tencent's VP, Yong-yi Zhu, assured GamesIndustry.biz in September that they had no plans to withdraw from the Western market, but acknowledged a possible reduction in investment in certain areas due to industry dynamics.
This news comes amidst a series of cutbacks at NetEase, another Chinese publisher, which has led to the closure of several studios it founded or funded, including Fantastic Pixel Castle, T-Minus Zero Studios, and Bad Brain Games.
But here's where it gets controversial: With Tencent's recent acquisitions and investments in Western studios, and the cutbacks at NetEase, what does this mean for the future of the Western gaming industry? And this is the part most people miss: How will these changes impact the creative freedom and innovation within these studios?
What are your thoughts on this restructuring and its potential implications? Do you think these moves by Tencent and NetEase are a sign of a changing landscape in the gaming industry? We'd love to hear your opinions in the comments!
