NetEase's Marvel Rivals, a resounding success attracting ten million players within three days of its launch, generated millions for the developer. However, a recent Bloomberg report reveals that NetEase CEO William Ding nearly canceled the game due to reservations about using licensed IP.
This report highlights NetEase's current strategic shift: Ding is implementing cost-cutting measures, including job reductions, studio closures, and reduced overseas investments. The aim is to streamline the company's portfolio, counteracting recent growth stagnation and enhancing competitiveness against industry giants Tencent and MiHoYo.
Bloomberg sources indicate that Marvel Rivals almost faced cancellation. Ding reportedly resisted the licensing fees for Marvel characters, advocating for original character designs. This near-cancellation allegedly cost NetEase millions, yet the game proceeded to launch and achieve significant success.
Despite this success, the restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," underscore this trend. Furthermore, 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 NetEase denies setting arbitrary revenue targets for new game viability.
Internal challenges at NetEase are also highlighted, focusing on Ding's leadership style. Sources describe Ding as decisive but volatile, prone to rapid decision-making and frequent changes of mind. Allegations include pressure on staff for extended work hours and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations raises concerns about potential game release delays in China next year.
NetEase's reduced investment in game development coincides with ongoing instability within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite substantial investment.
