NetEase's Marvel Rivals, a resounding success with ten million players in its first three days and millions in revenue for NetEase, almost never saw the light of day. Bloomberg reports that CEO William Ding nearly canceled the project due to his reluctance to utilize licensed Marvel IP.
This near-cancellation reflects NetEase's current strategic shift. Facing declining growth and competition from Tencent and MiHoYo, Ding is streamlining operations, including job cuts, studio closures, and a halt to overseas investments. The aim is a more focused portfolio of high-earning titles.
The Marvel Rivals near-cancellation, reportedly costing NetEase millions, stemmed from Ding's initial resistance to licensing fees for Marvel characters. He reportedly attempted to convince developers to use original character designs instead. Despite this setback, the game launched and achieved significant success.
However, the restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of investments in overseas projects (previously including significant investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment) highlight this ongoing shift. While NetEase denies setting arbitrary revenue targets for new games, the report suggests that Ding prioritizes titles projected to generate hundreds of millions annually.
Internal sources paint a picture of instability under Ding's leadership, citing his volatile decision-making, pressure on staff to work excessive hours, and the appointment of recent graduates to senior roles. The frequency of project cancellations is so high that NetEase may not release any new games in China next year.
NetEase's retreat from game investments coincides with broader industry uncertainty, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, along with the underperformance of several high-budget, high-profile titles.
