NetEase Stalwart Departs for Square Enix

Ryosuke Yoshida, Visions of Mana Director, Moves from NetEase to Square Enix

This surprising industry shift sees Ryosuke Yoshida, director of Visions of Mana and former Capcom designer, transition from NetEase to Square Enix, as announced via his Twitter (X) account on December 2nd. Details surrounding his departure from Ouka Studios remain scarce.

Yoshida's significant contributions to Visions of Mana, a collaborative effort involving Capcom and Bandai Namco, resulted in a critically acclaimed title boasting updated visuals. His departure follows the game's August 30th, 2024 release.

While Yoshida confirmed his December move to Square Enix, his future projects within the company remain undisclosed.

NetEase's Retrenchment in Japan

Yoshida's move isn't entirely unexpected, given NetEase's reported scaling back of investments in Japanese studios. A Bloomberg article (August 30th) highlighted NetEase and Tencent's decisions to cut losses after several successful ventures with Japanese developers. Ouka Studios, Yoshida's former employer, has been directly impacted, with NetEase significantly reducing its Tokyo workforce.

This strategic shift is partly driven by the resurgence of the Chinese gaming market, demanding a reallocation of resources. The success of Black Myth: Wukong, notably winning awards such as Best Visual Design and Ultimate Game of the Year at the 2024 Golden Joystick Awards, underscores this market rebound.

A Shifting Landscape

In 2020, both NetEase and Tencent invested heavily in Japan amidst a period of stagnation in the Chinese market. However, tensions appear to have arisen between these large companies and smaller Japanese developers. The differing priorities—global market expansion versus IP control—likely contributed to these adjustments.

While NetEase and Tencent aren't completely withdrawing from Japan, given their strong existing relationships, a more conservative approach is being adopted to mitigate losses and prepare for the revitalized Chinese market.