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Unity reportedly looking to separate China unit from main business

According to those familiar with the plans, business aims to give more local ownership and autonomy to its Chinese arm

Unity is reportedly looking to create a separate Chinese unit independent from the rest of the business in order to strengthen operations there, according to people familiar with the matter.

As reported by Reuters, the company hopes to give Unity China more local ownership and autonomy over how it operates, which may improve and inspire relationships with the local government and state-owned partners.

It also allegedly hopes to see its development software used more in the country as a result of the separation. Many of China’s most popular games are developed in Unity — including Tencent’s Honor of Kings and MiHoYo’s Genshin Impact.

Mentions of the metaverse also dotted the company’s plans. According to the same sources, Unity investors have made “big bets” on the metaverse, but nothing specific was mentioned.

Reuters shared that the plan has been in action for least a year; Unity China chief executive Zhang Junbo reportedly said that the company was looking for ways to make its services "safe and controllable," as China continues to impose restrictions on international and domestic development.

Zhang also said that Unity is looking to significantly expand its offices in Shanghai, Beijing and Guangzhou, and could hire over 1,000 new engineers in the coming years.

According to Reuters, employees based at the company’s Shanghai hub have been asked to sign contracts with a new entity, and discussions about a separate operating budget for an independent Chinese unit are still in progress.

Last month, it was reported that 4% of Unity staff across the globe had been laid off, impacting over 200 people. However, CEO John Riccitiello confirmed that over half of those affected had been rehired into other parts of the business.

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Danielle Partis

News Editor

Danielle is a multi award-winning journalist and editor that joined GamesIndustry.biz in 2021. She previously served as editor at PocketGamer.biz, and is also a co-founder of games outlet Overlode.

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