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

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

This report highlights NetEase's current restructuring: Ding is implementing job cuts, studio closures, and a withdrawal from overseas investments. The aim is to streamline the company's portfolio, counteracting recent growth stagnation and enhancing competition with Tencent and MiHoYo.

Bloomberg sources indicate that Marvel Rivals almost faced cancellation. Ding's reluctance to pay licensing fees for Marvel characters led to attempts to replace them with original designs. This near-cancellation reportedly cost NetEase significant funds, yet the game ultimately launched and achieved remarkable success.

Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of investment in overseas projects (previously including significant investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment) underscore this trend. The report suggests Ding prioritizes projects with the potential to generate hundreds of millions annually, though NetEase denies using arbitrary revenue targets for game viability.

Internal challenges at NetEase, according to Bloomberg's sources, stem from Ding's volatile leadership style. This includes 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 reduced investment in game development coincides with ongoing uncertainty 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 initial investment.