NetEase Founder Reportedly Almost Canceled Marvel Rivals Because it Didn't Use Original IP

NetEase's Marvel Rivals: A Success Despite Near-Cancellation

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 the developer. However, a recent Bloomberg report reveals that NetEase CEO William Ding nearly canceled the game due to his initial reluctance to utilize licensed intellectual property (IP).

This report highlights NetEase's current strategic shift, characterized by job cuts, studio closures, and a withdrawal from overseas investments. The aim is to streamline operations, focusing on a smaller, more profitable portfolio to combat recent growth stagnation and compete effectively against industry giants Tencent and MiHoYo.

The near-cancellation of Marvel Rivals was a significant part of this restructuring. Sources indicate Ding's hesitation stemmed from the cost associated with licensing Marvel characters, leading him to propose using original character designs instead. This attempted cancellation reportedly cost NetEase millions, yet the game ultimately launched and achieved remarkable success.

Despite this triumph, NetEase's streamlining continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," underscores this ongoing process. Furthermore, Ding's decision to halt investments in overseas projects, after previously investing heavily in studios like Bungie, Devolver Digital, and Blizzard Entertainment, reflects a shift in priorities. The report suggests a focus on projects 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 his volatile decision-making, frequent changes of mind, pressure on staff to work excessive hours, and appointments of recent graduates to senior leadership positions. These factors, coupled with numerous project cancellations, raise concerns about NetEase's potential game releases in China next year.

NetEase's retreat from game investments coincides with a period of uncertainty in the global gaming industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside the underperformance of several high-profile, expensive game titles.