NetEase's Marvel Rivals has proven to be a phenomenal success, attracting ten million players in just three days after 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 was on the verge of canceling the game due to his reluctance to use licensed intellectual property (IP).
According to the report, Ding is currently implementing significant changes within NetEase, including job cuts, studio closures, and a withdrawal from overseas investments. The aim is to streamline the company's portfolio to address a recent decline in growth and to better compete with industry giants Tencent and MiHoYo.
Bloomberg's sources indicate that Ding's hesitance to pay for Marvel's licensed characters almost led to the cancellation of Marvel Rivals. He reportedly attempted to convince artists to use original designs instead. This attempted cancellation reportedly cost NetEase millions, yet the game was ultimately released and has enjoyed resounding success.
Despite the success of Marvel Rivals, NetEase's restructuring efforts continue. Earlier this week, the Marvel Rivals Seattle team was laid off, which the company attributed to "organizational reasons." Over the past year, Ding has also ceased investments in overseas projects, previously having invested in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests that Ding believes only games capable of generating hundreds of millions per year are worth pursuing, although a NetEase spokesperson clarified to Bloomberg that the company does not set "arbitrary blanket numbers" for determining new game viability.
Employees who spoke with Bloomberg described internal challenges at NetEase, highlighting Ding's unpredictable leadership style. They noted that Ding makes rapid decisions and frequently changes his mind, has pressured employees to work late hours, and recently appointed many recent graduates to leadership roles. There are also concerns that NetEase may not release any new games in China next year due to the number of projects Ding has canceled.
NetEase's retreat from game investments coincides with a period of uncertainty in the gaming industry, particularly in the West. The sector has faced consecutive years of widespread layoffs, project cancellations, and studio closures, alongside several high-profile game flops that did not meet company expectations.
