NetEase's Marvel Rivals, a resounding success with ten million players in its first three days and millions in revenue for NetEase, almost never saw the light of day. A new Bloomberg report reveals that CEO William Ding nearly canceled the project due to his aversion to using licensed intellectual property.
This decision reflects NetEase's current strategy: a significant restructuring involving job cuts, studio closures, and a retreat from overseas investments. The aim is to streamline operations, combat recent growth stagnation, and better compete with industry giants Tencent and MiHoYo.
Bloomberg sources indicate that Ding's resistance to licensing fees for Marvel characters led him to push for original character designs instead. The attempted cancellation reportedly cost NetEase millions, yet the game launched and achieved remarkable success.
The restructuring continues, however. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons" by NetEase, highlight this ongoing process. Furthermore, Ding has halted investments in overseas projects, reversing previous substantial investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests a focus on games projected to generate hundreds of millions annually, although NetEase denies using arbitrary revenue targets for game viability.
Internal challenges at NetEase are also highlighted in the Bloomberg report, focusing on Ding's leadership style. Sources describe him as volatile and decisive, prone to rapid changes in direction, demanding long hours from staff, and favoring recent graduates for leadership positions. The frequency of project cancellations is so high that NetEase might 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, coupled with the underperformance of several high-budget, high-profile games.
