NetEase, Inc. (NASDAQ:NTES) is one of the best metaverse stocks to buy, according to analysts. On March 7, Bloomberg reported that NetEase, Inc. (NASDAQ:NTES) will cut off funding to a studio led by Yakuza franchise creator Toshihiro Nagoshi.
The move is part of the company’s broader strategy to shrink game development activities. The company has been reducing its overseas investments as it faces rising costs for AAA game development. It also underscores the struggles that one of the largest gaming studios has faced amid soaring competition from alternative outlets such as social media.
Nagoshi has struggled to find sponsors without success, and NetEase has made it clear that the studio can continue on its own if it can bear the corresponding costs. Nagoshi Studio has also opened negotiations with the company as it seeks to recover some of the game materials it developed.
NetEase’s decision to end financing of Nagoshi studio follows reports that the studio’s upcoming title would require an additional $44.4 million. The decision would put the development of Gang of Dragon in Jeopardy.
NetEase, Inc. is actively developing the metaverse by leveraging its strong gaming background to create immersive, 3D, interactive virtual environments. The company focuses on integrating artificial intelligence (AI), virtual reality (VR), augmented reality (AR), and blockchain technology to foster virtual social interaction, education, and entertainment.
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