NetEase's Marvel Rivals has been a resounding success, attracting ten million players within three days of launch and generating millions in revenue for developer NetEase. However, a new Bloomberg report reveals that CEO and founder William Ding nearly canceled the game due to reservations about using licensed IP.
The report details NetEase's current restructuring: Ding is implementing job cuts, studio closures, and scaling back overseas investments. The aim is to create a more focused portfolio, countering recent growth stagnation and bolstering competition with Tencent and MiHoYo.
This streamlining almost resulted in the cancellation of Marvel Rivals. Sources claim Ding initially resisted the cost of licensing Marvel characters, advocating for original character designs instead. This attempted cancellation reportedly cost NetEase millions, yet the game launched to considerable success.
The restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of overseas investments—previously encompassing significant investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment—underscore this shift. The report suggests Ding prioritizes games projected to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue thresholds for new game viability.
Internal challenges are also highlighted, centering on Ding's leadership style. Employees describe his volatile decision-making, pressure to work excessive hours, recent appointments of recent graduates to leadership positions, and a high number of canceled projects, potentially leading to a complete absence of new NetEase game releases in China next year.
NetEase's reduced investment in game development coincides with ongoing instability within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant financial backing.
