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 recent 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 reducing staff, closing studios, and scaling back overseas investments. The aim is to create a leaner portfolio, countering recent growth stagnation and bolstering competition with Tencent and MiHoYo.
This streamlining almost resulted in Marvel Rivals' cancellation. Sources claim Ding initially resisted the cost of licensing Marvel characters, advocating for original character designs. This attempted cancellation reportedly cost NetEase millions, yet the game launched to significant success.
Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," underscores this. Over the past year, Ding has halted investment in overseas projects, reversing previous substantial investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes games projected to generate hundreds of millions annually, although a NetEase spokesperson denies the existence of such a rigid financial threshold for new game viability.
Bloomberg's report also highlights internal challenges stemming from Ding's leadership style, characterized as volatile and decisive. This includes frequent changes in direction, pressure on employees to work excessive hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations is reportedly 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. The past few years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant investment.
