Marvel Rival Game Nearly Not Released, Lacked Original Content

NetEase's Marvel Rivals, a resounding success with ten million players in its first three days and millions in revenue for NetEase, almost didn't happen. Bloomberg reports that NetEase CEO William Ding nearly canceled the game due to reservations about using licensed intellectual property.

This near-cancellation reflects a broader strategy at NetEase. Ding is streamlining the company, reducing its workforce, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to counter recent growth stagnation and better compete with industry giants Tencent and MiHoYo.

The report indicates that Ding's reluctance to pay licensing fees for Marvel characters almost led to Marvel Rivals' demise. He reportedly attempted to convince developers to use original character designs instead. While this near-cancellation reportedly cost NetEase significant funds, the game ultimately launched and achieved considerable success.

Despite this success, the restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," exemplify this trend. Furthermore, Ding has halted investment in overseas projects, reversing previous significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes projects projected to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue targets for new game viability.

Internal sources cited by Bloomberg describe a challenging work environment marked by Ding's volatile leadership style. These accounts portray a leader prone to rapid decision-making and frequent changes of heart, who pressures employees to work excessive hours and has recently appointed numerous recent graduates to senior leadership positions. The frequency of project cancellations is reportedly so high that NetEase might not release any new games in China next year.

NetEase's reduced investment in game development occurs amidst widespread uncertainty in the global gaming industry, particularly in Western markets. Recent years have witnessed numerous layoffs, game cancellations, studio closures, and high-profile game failures despite significant financial backing.