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

NetEase's Marvel Rivals, a resounding success with ten million players in its first three days, has generated millions for the developer. However, a recent Bloomberg report reveals that CEO William Ding nearly canceled the project due to reservations about using licensed intellectual property.

The report highlights NetEase's current strategy: a reduction in workforce, studio closures, and a withdrawal from overseas investments. This restructuring aims to streamline operations, combat recent growth stagnation, and better compete with industry giants Tencent and MiHoYo.

Marvel Rivals almost fell victim to this streamlining. Sources claim Ding's reluctance to pay licensing fees for Marvel characters led to attempts to replace them with original designs. While the attempted cancellation reportedly cost NetEase millions, the game's eventual release proved incredibly successful.

Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of overseas investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment, underscore this shift. The report suggests a focus on projects projected to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue thresholds for new game viability.

Internal challenges are also highlighted, focusing on Ding's leadership style. Employees describe a volatile decision-making process, pressure to work excessive hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations is so high that NetEase might not release any new games in China next year.

NetEase's retreat from game investments coincides with broader industry uncertainty, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, along with numerous high-profile game failures despite substantial investment.