Social media giant ByteDance has appointed Zhang Yunfan as the new head of its video gaming unit, Nuverse, mere weeks after selling its third developer studio to a Tencent Holdings-backed company.
Zhang, who recently assumed the role of chief executive at Shanghai-based Moonton Technology, the creator of Mobile Legends: Bang Bang, will report to Hua Wei, head of ByteDance’s human resources department.
ByteDance, valued at $220 billion by the Hurun Research Institute and ranked as the world’s largest unicorn, confirmed Zhang’s appointment on Monday. This strategic move underscores the Beijing-based company’s ongoing efforts to navigate its complex expansion into the video gaming industry.
Once seen as a potential gold mine for ByteDance, the gaming sector has proven to be a challenging endeavor. Economic headwinds and regulatory pressures have forced the company to cut its workforce and sell off assets, marking a significant retreat from the industry.
In May, ByteDance agreed to sell C4Games studio, known for the mobile title Red Alert Online, for 259 million yuan to a subsidiary of China Ruyi Holdings, a film and video game production outfit nearly 22 percent-owned by Tencent.
Further reflecting ByteDance’s strategic withdrawal, Tencent’s LightSpeed Studios absorbed a project in Shenzhen previously owned by ByteDance’s Gravity Studio and an open-world project from ByteDance’s Jiangnan Studio in Hangzhou, as reported by the South China Morning Post in March.
Additionally, last November, ByteDance announced to its employees the shutdown of most game projects that had not been released online and the sale of rights to at least two Nuverse titles: the anime-style action role-playing game Crystal of Atlan and the sci-fi survival game Earth: Revival.
Zhang Yunfan’s appointment comes at a critical juncture for ByteDance’s gaming division. His leadership at Nuverse will be pivotal as the company redefines its strategy and seeks to stabilize its presence in the gaming market amidst ongoing industry challenges.