Marvel IP Omission Prompted Cancellation

NetEase's Marvel Rivals, a resounding success with ten million players in its first three days and millions in revenue for NetEase, nearly faced cancellation. Bloomberg reports that CEO William Ding, currently restructuring NetEase by cutting jobs, closing studios, and reducing overseas investment, initially resisted using licensed Marvel IP.

Ding reportedly attempted to replace the Marvel characters with original designs, a decision that allegedly cost NetEase millions before the game's ultimately successful launch. This cost-cutting continues; the Seattle Marvel Rivals team recently experienced layoffs, attributed by NetEase to "organizational reasons." Over the past year, Ding has halted investment in overseas projects, previously involving significant funding in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report indicates Ding's focus on games projected to generate hundreds of millions annually, although NetEase denies using arbitrary revenue targets for game viability.

Internal sources describe Ding's leadership as volatile, characterized by rapid decision-making, frequent changes of mind, pressure on staff for extended work hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations is so high that NetEase may not release any new games in China next year.

NetEase's reduced investment in game development coincides with broader industry uncertainty, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant initial investment.