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The parent company of the social media platform TikTok, ByteDance, has announced upcoming layoffs that will affect hundreds of employees in the gaming division. The company is shifting focus away from the video game industry and will be investing resources into core divisions. The video game department, Nuverse, will lay off a majority of workers but will retain workers to maintain operations for existing games. The division will end the development of any new video games, and work on selling existing video games. ByteDance has also cut staff in the virtual reality division, and ByteDance stated that these various changes will set the company for long-term growth and stability. Other companies in the video gaming industry have also made cuts and laid off workers, as the industry has become more competitive and profits are decreasing. Revenue from video games has been decreasing, and operation costs have been steadily increasing.