NetEase's Marvel Rivals has proven to be a massive success, attracting 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 the game's existence was almost jeopardized by NetEase CEO and founder William Ding's initial reluctance to utilize licensed IP.
According to Bloomberg, Ding is currently implementing significant changes at NetEase, including job cuts, studio closures, and a withdrawal from overseas investments. The aim is to create a more focused portfolio that can combat a recent decline in growth and better compete with industry giants like Tencent and MiHoYo.
The report indicates that Marvel Rivals was nearly canceled as part of this downsizing effort. Ding reportedly resisted paying for the use of licensed Marvel characters and instead tried to convince artists to develop original designs. Despite the attempted cancellation, which reportedly cost NetEase millions, the game was ultimately released to its current success.
Despite the triumph of Marvel Rivals, NetEase's restructuring continues. Just this week, the Marvel Rivals team in Seattle was laid off for "organizational reasons." 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 only sees value in games capable of generating hundreds of millions annually, though a NetEase spokesperson clarified to Bloomberg that the company does not use "arbitrary blanket numbers" to assess a new game's viability.
Bloomberg's interviews with NetEase employees also shed light on internal challenges, portraying Ding as an unpredictable leader. Employees described Ding's rapid decision-making, frequent changes of mind, pressure to work late hours, and the hiring of recent graduates into key leadership positions. There are also concerns that NetEase might not release any new games in China next year due to Ding's cancellation of numerous projects.
NetEase's retreat from game investments occurs during a period of heightened uncertainty in the gaming industry, particularly in Western markets. The industry has faced several years of mass layoffs, project cancellations, and studio closures, compounded by the underperformance of several high-cost, high-profile games.
