NetEase launches first US studio in Texas as China’s second-largest video games player seeks growth outside hostile home market
- Jackalope Games will be led by veteran American game designer Jack Emmert, who worked for Daybreak Games
- Opening of US studio reinforces trend of Chinese video gaming companies doubling down on overseas markets for earnings growth

NetEase, China’s second-largest video gaming company, has launched its first US studio in Austin, Texas, marking another move overseas by a Chinese games developer as the domestic market turns increasingly hostile.
NetEase Games, the online games division of Nasdaq-listed NetEase, said in a release on Thursday that the US studio, Jackalope Games, will be led by veteran American game designer Jack Emmert, who has worked on City of Heroes, Neverwinter, Star Trek Online, and DC Universe Online.
Emmert, who was head of the Daybreak Games studio responsible for massively multiplayer online role-playing games (MMORPG), said in a statement that NetEase Games “is the best possible place for me and my team to thrive”.
NetEase did not disclose the financial terms of setting up the studio. It said the studio will operate independently when it comes to game development, and the first title produced by Jackalope Games will be fully funded by NetEase.
The opening of the studio reinforces a trend of Chinese video gaming companies doubling down on overseas markets for earnings growth, which has stalled at home amid regulatory pressure and a months-long freeze on new gaming licences that only ended recently.
William Ding, founder and chief executive of NetEase, said in a February earnings call that the company is “calling on global gaming talent and will accelerate overseas expansion”.