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

NetEase's Marvel Rivals has proven to be a smashing success, amassing ten million players within just three days of its launch and generating substantial revenue for the developer in the subsequent weeks. However, a recent report from Bloomberg reveals that NetEase CEO and founder William Ding came close to canceling the game due to his reservations about using licensed intellectual property.

Bloomberg's report sheds light on the strategic shifts at NetEase, where Ding is implementing cost-cutting measures, including job cuts, studio closures, and pulling back from overseas investments. The aim is to streamline the company's portfolio to counter a recent decline in growth and to keep pace with competitors like Tencent and MiHoYo.

The decision to nearly cancel Marvel Rivals was part of this broader strategy. According to a source cited in the report, Ding was hesitant to pay for the use of Marvel characters and instead pushed for the use of original designs. The attempted cancellation reportedly cost NetEase millions, yet the game was ultimately released and has since enjoyed tremendous success.

Despite the game's success, NetEase continues its downsizing efforts. Just this week, the Marvel Rivals team in Seattle was laid off, with the company citing "organizational reasons." Over the past year, Ding has also halted investments in international projects, previously having made significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests that Ding views games that fail to generate hundreds of millions annually as unworthy of the company's focus, though a NetEase spokesperson clarified to Bloomberg that the company does not set "arbitrary blanket numbers" for new game viability.

Employees speaking to Bloomberg described a challenging internal environment at NetEase, attributing it to Ding's unpredictable leadership style. They noted that Ding is prone to rapid decision-making and frequent changes of mind, has encouraged late working hours, and has appointed recent graduates to key leadership positions. There are also concerns that NetEase might not release any games in China next year due to the number of projects Ding has canceled.

NetEase's retreat from gaming investments coincides with a period of uncertainty within the global gaming industry, particularly in Western markets. The industry has faced consecutive years of widespread layoffs, project cancellations, and studio closures, compounded by the underperformance of several high-budget, high-expectation games.