TOKYO—Japanese smartphone game makers are shrinking their lineups and cutting jobs, under pressure from Chinese developers who are pushing into the market with apps that are winning praise for creativity and ease of play.
The inroads into a videogame industry where Japan has often set trends sounds an alert for other nations as Chinese technology firms spread into new areas including software and consumer content. The popularity of TikTok, the video-sharing app from ByteDance Ltd., has already garnered attention in the U.S.
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