NetEase's Marvel Rivals has proven to be a smashing success, amassing 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 was on the verge of canceling the game due to his reluctance to utilize licensed intellectual property.
According to Bloomberg, Ding is currently implementing a series of cost-cutting measures, including job cuts, studio closures, and a withdrawal from overseas investments. The aim is to streamline NetEase's portfolio to better combat a recent decline in growth and to stay competitive with industry giants like Tencent and MiHoYo.
The report indicates that Marvel Rivals was nearly a casualty of this downsizing effort. A source cited by Bloomberg mentioned that Ding was hesitant to pay for the use of Marvel's licensed characters and attempted to convince artists to create original designs instead. The attempted cancellation reportedly cost NetEase millions, but ultimately, the game was released and has since enjoyed significant success.
Despite the triumph of Marvel Rivals, NetEase's restructuring efforts persist. Earlier this week, the Marvel Rivals team in Seattle was laid off, with the company citing "organizational reasons" for the decision. Over the past year, Ding has also halted investments in international projects, having previously made significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests that Ding views games that fail to generate hundreds of millions annually as not worth the company's time, although a NetEase spokesperson clarified to Bloomberg that the company does not set "arbitrary blanket numbers" for evaluating new game viability.
Employees speaking to Bloomberg have highlighted internal challenges at NetEase, attributing them to Ding's unpredictable leadership style. They describe Ding as someone who makes swift decisions and frequently changes his mind, pressures staff to work long hours, and has recently appointed numerous recent graduates to key leadership positions. It's also alleged that Ding has canceled so many projects that NetEase might not release 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 industry has faced consecutive years of widespread layoffs, project cancellations, and studio closures, compounded by the underperformance of several high-cost, high-profile games despite lofty expectations from their developers.
