NetEase's Marvel Rivals has proven to be a resounding success, attracting ten million players within just three days of its launch and generating substantial revenue for the developer in the subsequent weeks. However, a recent Bloomberg report reveals that NetEase CEO and founder William Ding nearly canceled the project due to his hesitation to utilize licensed intellectual property (IP).
According to Bloomberg, Ding is currently streamlining NetEase by reducing its workforce, closing studios, and pulling back from international investments. The aim is to create a more focused portfolio that can address recent declines in growth and better compete with industry giants like Tencent and MiHoYo.
The report suggests that Marvel Rivals was almost a casualty of this downsizing strategy. A source indicated that Ding was reluctant to pay for the use of Marvel characters and attempted to convince artists to develop original designs instead. This near-cancellation reportedly cost NetEase millions, yet the game was ultimately released and has since enjoyed significant success.
Despite the triumph of Marvel Rivals, NetEase's restructuring efforts persist. Earlier this week, the Marvel Rivals team in Seattle 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 notes that Ding considers games that do not generate hundreds of millions annually as not worth the company's investment, although a NetEase spokesperson clarified to Bloomberg that the company does not use "arbitrary blanket numbers" to assess new game viability.
Employees speaking to Bloomberg have highlighted internal challenges at NetEase, pointing to Ding's unpredictable leadership style. They describe him as quick to make decisions, frequently changing his mind, pressuring staff to work long hours, and recently appointing numerous recent graduates to leadership positions. These actions have led to the cancellation of so many projects that NetEase might not release any games in China next year.
NetEase's retreat from game investments coincides with a period of uncertainty in the gaming industry, particularly in Western markets. The sector has faced multiple years of widespread layoffs, project cancellations, and studio closures, along with several high-profile and costly game flops that fell short of expectations.
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