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 sheds light on NetEase's current strategic shift. Ding is implementing cost-cutting measures, including job reductions, studio closures, and a withdrawal from overseas investments. The aim is to streamline the company's portfolio, counter recent growth stagnation, and enhance competitiveness against industry giants Tencent and MiHoYo.
This restructuring almost resulted in the cancellation of Marvel Rivals. Sources indicate Ding's hesitation stemmed from the cost associated with licensing Marvel characters. He reportedly attempted to convince developers to utilize original character designs instead. This near-cancellation reportedly cost NetEase millions, yet the game proceeded to launch and achieve remarkable success.
Despite this success, the downsizing continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," underscores 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 that Ding prioritizes projects projected to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue targets for new game viability.
Internal challenges at NetEase have also been highlighted, focusing on Ding's leadership style. Employees described Ding's volatile decision-making process, characterized by rapid changes in direction and pressure to work excessive hours. The recent appointment of numerous recent graduates to senior leadership positions has also been noted. The frequency of project cancellations is reportedly so high that NetEase may not release any new games in China next year.
NetEase's retreat from game investments coincides with a period of uncertainty within the global gaming industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside several high-profile game failures despite significant initial investment.
