ByteDance Ltd. plans to wind down its main gaming brand Nuverse in a major withdrawal from the sector, a person familiar with the matter said, after failing to make headway against rivals like Tencent Holdings Ltd.

The Chinese company intends to announce the move on Monday, the person said, asking to remain anonymous discussing a private deal. Reuters earlier reported on ByteDance’s retreat.

ByteDance has gradually scaled back its gaming ambitions in the post-Covid era, after meeting stiff competition from Tencent and NetEase Inc. The Beijing-based firm is also considering selling Moonton, a high-profile studio it acquired for $4 billion in 2021, Bloomberg News has reported.

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