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Is the Gaming Industry Facing a Studio Shutdown Crisis?

As the challenges started appearing, major companies have started taking essential measures to address these challenges, and one of the most important among them is organizational restructuring. Recently, for example, has closed three of its game development studios: Player First Games, Warner Bros. Games San Diego, and Monolith Productions. Aside from that, it has even cancelled the anticipated Wonder Woman game. Well, this move is also part of a broader strategy, where the company is making a ground to focus on its core franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones.

Similarly, another big name in the gaming world, , has also taken some bold steps to reorganize its . This restructure has led to significant layoffs and the shutdown of its Californian game studio. According to the latest reports, this organization has revised its former strategy of investing in original indie games and is returning to the safest choice of developing games based on its existing intellectual properties.

Next came NetEase, and the decision that this Chinese game publisher organization made shocked the entire gaming world. After the groundbreaking success of , this company laid off the entire Seattle team. All of these decisions show a similar trend where the company is trying to scale its investments back to international studios to make more profitable games.

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