NetEase launches its first console-dedicated gaming studio in Tokyo as it steps up global expansion

Sakura Studio is NetEase’s second, high-profile overseas studio after opening a centre in Montreal last November

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Published: 4:30pm, 8 Jun 2020Updated: 4:30pm, 8 Jun 2020

NetEase has established a Tokyo-based studio called Sakura Studio as the Chinese gaming giant looks to develop next-generation console games.

Sakura Studio is NetEase’s second, high-profile overseas studio after opening a centre in Montreal last November. NetEase, which expects to hire local Japanese game makers as members of its core development team, said last week that the studio will integrate “the Japanese way of developing games” with its experience in producing PC and mobile games.

The creation of Sakura Studio comes as Chinese gaming companies continue to expand overseas amid increased regulation at home. However, with mobile gaming still dominant in China, developing high-quality console games has been a challenge – hence the move towards acquisitions and hiring overseas talent.

“As our first studio dedicated to ‘the development of console games’, Sakura Studio has invited a gaming producer with rich experience in creating console games to helm the studio,” said a NetEase spokesperson, without disclosing further details.

Tencent Holdings has also targeted the console market, especially in Japan. The world’s biggest games publisher by revenue recently became the biggest external shareholder in Japanese console game developer Marvelous via a US$65 million deal. It also invested an undisclosed amount in PlatinumGames, another iconic Japanese console game maker.