NetEase's Marvel Rivals has been a resounding success, attracting ten million players within three days of its launch and generating millions in revenue for developer NetEase. However, a new Bloomberg report reveals that CEO and founder William Ding nearly canceled the game due to reservations about using licensed intellectual property.
This report highlights NetEase's current strategy: Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to combat recent growth stagnation and compete effectively with industry giants Tencent and MiHoYo.
This restructuring almost resulted in the cancellation of Marvel Rivals. Sources indicate Ding initially resisted the cost of licensing Marvel characters, attempting to convince artists to utilize original designs instead. This near-cancellation reportedly cost NetEase millions, yet the game ultimately launched to considerable success.
Despite this success, the downsizing continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," underscore this trend. Over the past year, Ding has halted investments in overseas projects, reversing previous significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes projects with the potential to generate hundreds of millions annually, although a NetEase spokesperson denies the existence of arbitrary revenue thresholds for new game viability.
Bloomberg's report also reveals internal challenges, citing Ding's volatile leadership style. Sources describe rapid decision-making, frequent changes of mind, pressure on staff to work excessive hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations is so high that NetEase may not release any new games in China next year.
NetEase's retreat from game investments coincides with ongoing uncertainty within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside the underperformance of several high-profile, expensive games.
