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Kingsoft Game Studio Denies Layoff Rumors

Tencent Tech, 11/25/10

Gao Song, a spokesperson for Beijing-based software developer Kingsoft's (3888.HK) Shangshui Studio, said there was no chance of the studio being disbanded, as had been rumored, and noted that after closed beta testing of the studio's 2.5D MMORPG Du Gu Jiu Jian ends, the studio will set up a new project, meaning that the studio will not be disbanded.

A Kingsoft employee confirmed that the company's Beijing-based Lijian Studio had been informed yesterday that it would be closed down. The studio's main project had been the browser game Shendao Xing 8 Ke, which underwent a brief period of beta testing in late October.

Kingsoft CEO Zou Tao discussed the product in an interview yesterday, noting that the game had always been in beta and had not yet reached the point of being ready for release.

Calls to Lijian Studio head Li Anke's phone did not go through.

When asked about personnel reassignments for former Lijian Studio employees, Gao Song said that employees from the erstwhile studio would be transferred to jobs in Beijing, and given new projects at the appropriate time. Gao said he was unaware of whether the Lijian employees would be transferred to Shangshui Studio or to the Qichenzhai studio.

Qichenzhai spokesperson Sun Hui was also unable to answer the question.

Editor's Note: Sina Tech quoted reports that Kingsoft was preparing to restructure its game design studios. The current plan reportedly calls for Kingsoft to have only one studio, Qichenzhai, in Beijing by February. Other studios, including Lijian and Shangshui, are to be disbanded; employees will have the option of moving to Kingsoft's Zhuhai studio or leaving the company. Another source reported that Kingsoft had recently convened a meeting of key employees to discuss the company's plans to restructure its Beijing studios.

Tencent Tech quoted Kingsoft Games as saying that the Lijian, Shangshui, and Qichenzhai studios would not be disbanded during the restructuring of Kingsoft's game studios. Kingsoft said that tests on Du Gu Jiu Jian and The First Myth III had found that progress on the games was continuing as planned, and that both games would be key products in Kingsoft Games' 2011 strategy. Some of the star employees from Lijian Studio will be added to the Du Gu Jiu Jian and The First Myth III R&D teams.

Keywords: Gao Song R&D Shangshui Studio Lijian Studio corporate restructuring Sun Hui Kingsoft Internet 3888.HK Shendao Xing 8 Ke Du Gu Jiu Jian First Myth III Qichenzhai HR online gaming

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