NetEase's Marvel Rivals has proven to be a smashing success, amassing ten million players within just three days of its launch and generating significant revenue for the developer in the subsequent weeks. However, a recent Bloomberg report sheds light on a near-cancellation of the game, driven by NetEase CEO and founder William Ding's initial reluctance to utilize licensed intellectual property (IP).
According to Bloomberg, Ding has been steering NetEase toward a more streamlined and focused business model in response to a recent decline in growth. This strategy involves cutting jobs, closing studios, and pulling back from international investments. The goal is to create a leaner portfolio capable of competing more effectively with industry giants like Tencent and MiHoYo.
The report details that Marvel Rivals was nearly axed as part of this restructuring effort. Ding reportedly hesitated to pay for the use of Marvel's licensed characters, instead encouraging artists to create original designs. The attempted cancellation reportedly incurred millions in costs for NetEase, but ultimately, the game was released to its current acclaim.
Despite the success of Marvel Rivals, NetEase's downsizing efforts persist. Recently, the Marvel Rivals Seattle team was laid off, with the company citing "organizational reasons." Over the past year, Ding has also halted overseas investments, previously made in Japanese and Western studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests that Ding's focus is on games that can generate substantial revenue, although a NetEase spokesperson clarified to Bloomberg that the company does not set arbitrary financial thresholds for game viability.
Employees speaking to Bloomberg highlighted internal challenges at NetEase, attributing them to Ding's unpredictable leadership style. They describe Ding as prone to rapid decision-making and frequent changes of mind, pressuring staff to work late, and recently appointing numerous recent graduates to leadership positions. These actions have reportedly led to the shutdown of so many projects that NetEase may not release any games in China next year.
NetEase's retreat from game investments coincides with broader uncertainty in the gaming industry, particularly in Western markets. The past few years have been marked by widespread layoffs, project cancellations, and studio closures, alongside the disappointing performance of several high-budget, high-expectation games.
