Chinese internet and media company NetEase has formally purchased Canadian firm SkyBox Labs
Canadian developer SkyBox Labs was officially acquired by Chinese internet and media business NetEase. With the addition of the co-developer of Halo Infinite to its portfolio, NetEase appears to be adopting a similar strategy at a time when acquisitions are increasing in frequency in the game business. In 2023, NetEase’s shopping binge is still going strong. In August 2022, NetEase acquired Quantic Dream, the company of Detroit: Become Human, after purchasing Suda51’s studio Grasshopper Manufacture in 2021. Now, in order to start 2023 off strong, NetEase has acquired Canadian software company SkyBox Labs.
SkyBox Labs’ contribution to gaming
While SkyBox Labs is probably most known for its work on Halo Infinite, the studio has also contributed to games like Fallout 76 and Minecraft. On the other side, NetEase has worked on several noteworthy projects in the past and has collaborated with brands like Marvel and Pokemon. Even Bungie and the corporation are working together on a new IP. With the purchase of SkyBox, NetEase might be preparing for a more daring move.
The official announcement
On January 6, the business made a formal announcement (on twitter) announcing that its gaming arm NetEase Games had purchased the Canadian studio. The release also stated that SkyBox, a co-developer of Fallout 76, would continue to work independently under the direction of NetEase Games, with NetEase providing resources to speed up SkyBox’s progress. According to Shyang Kong, a co-founder of SkyBox Labs, his company will be able to accelerate plans to investigate “new creative opportunities” and benefit from having access to top-notch operational resources and the complete range of NetEase’s services. This will aid the studio in scaling more quickly in Canada.
In 2021, NetEase purchased Grasshopper Manufacture, the company behind No More Heroes and The Silver Case. The French studio responsible for Heavy Rain and the impending Star Wars Eclipse, Quantic Dream, was acquired by NetEase the following year. In 2019, the business had previously acquired a small share in Quantic Dream. It is still unknown if NetEase is looking to acquire more studios. But given NetEase’s previous course, it wouldn’t be unexpected to hear of another announcement of a similar nature.
The studio’s expansion plans
Along with co-creating Halo Infinite with 343 Industries, SkyBox has contributed to a variety of games, including Age of Empires II HD and Minecraft. Recently, the studio revealed plans to grow by opening three additional offices in the metro Vancouver area, including two sizable ones in Victoria and Burnaby. In August of last year, SkyBox has slightly over 250 employees, and it is currently hiring across all fields.
Skybox was said to be working on “a variety of upcoming undisclosed titles, including partner projects and internal IP” in the press release from last August. Shyang Kong, Derek MacNeil, and Steven Silvester, the three co-founders of Skybox, will continue to serve as the company’s present leaders. In 2023, not everything is going NetEase’s way. A number of games, including Diablo 3, Overwatch 2, Starcraft 2, and World of Warcraft, were taken offline in mainland China in November as a result of the Chinese publisher’s failure to negotiate an agreement with Blizzard to extend its licencing arrangement for those games.
Conclusion
In the UK as well as in other nations like Germany, Brazil, and Singapore, Riot Games sued NetEase on claims that its Hyper Front game is a replica of Riot’s Valorant. Given how difficult it is to demonstrate copyright infringement, it will be some time before any result can be anticipated. In any case, given the state of the game industry today, NetEase’s future is looking interesting.
