NetEase's Marvel Rivals has proven to be a smashing success, attracting an impressive 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 pulled the plug on the game due to his hesitations about using licensed intellectual property (IP).
The report sheds light on the current restructuring efforts at NetEase, where Ding is actively reducing the workforce, shutting down studios, and pulling back from international investments. The aim is to create a more focused and efficient portfolio to combat a recent slowdown in growth and to better compete with industry giants like Tencent and MiHoYo.
According to Bloomberg, the decision to nearly cancel Marvel Rivals stemmed from Ding's reluctance to pay for the use of Marvel characters. He reportedly tried to convince the art team to use original designs instead. The attempted cancellation reportedly cost NetEase millions, yet the game ultimately launched to its current acclaim.
Despite the success of Marvel Rivals, NetEase's downsizing efforts persist. Recently, the Marvel Rivals team in Seattle was laid off, a move the company attributed to "organizational reasons." Over the past year, Ding has also ceased overseas investments, previously having significant stakes in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding's criteria for project viability have become stringent, focusing only on games that can generate hundreds of millions annually, though a NetEase spokesperson clarified that the company does not set such rigid financial benchmarks for new games.
Employees interviewed by Bloomberg described a challenging internal environment at NetEase, attributing much of the unrest to Ding's unpredictable leadership style. They noted his rapid decision-making, frequent changes of direction, pressure on staff to work late hours, and the hiring of recent graduates into high-level leadership positions. There are concerns that these decisions may result in NetEase not releasing any new 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 consecutive years of widespread layoffs, project cancellations, and studio closures, compounded by the underperformance of several high-budget, high-profile games that failed to meet corporate expectations.
