TikTok's Gaming Efforts May Be in Trouble
ByteDance was testing TikTok games that users could play for a few minutes, rather than dump hours into like a traditional game. It was a similar approach to how the service uses videos, making everything short and sweet, but for games. According to SCMP, after acquiring game studios and making big plans for this effort, ByteDance has been "aggressively downsizing" its gaming teams. Wushuang Studio reportedly lost most of its staff and other studios have seen notable job cuts. It's believed this is a result of Chinese developers having difficulty getting games approved by the Chinese government. As of July 2022, China has only approved 172 games for release, which is nearly 600 less than the ones approved during the same time period in 2021.
As it stands, it seems like ByteDance is aware this is an uphill battle and is choosing to support its already released games rather than make new ones. Of course, that's not to say that ByteDance is completely throwing in the towel, but it is a major block to succeeding with its endeavors. If this issue gets sorted out, perhaps things will resume as normal, but ByteDance seemingly would rather avoid losing tons of money on something it can't really control at the moment.
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Source: https://comicbook.com/gaming/news/tiktok-gaming-efforts-bad-news/
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