Insiders of mobile industry hinted that Gameloft‘s Shanghai branch company has been closed, and the company’s other Chinese branch companies would be all affected. Other branch companies seem to start laying off. According to Gameloft’s annual financial report, its performance still mounts steadily.

The main reason of the layoff might be the fierce competition of mobile market in mainland China. There have been many foreign mobile game and social game publishers establishing their own gaming businesses in China in recent years, such as Rovio and DeNA. Although Gameloft is famous across the world and has developed many awesome mobile titles, but the more important thing of doing business in China is to fully appreciate the habits of local players.

The story was originally published on gaming portal 178.com, an editorial partner of TechNode.