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 his initial reluctance to utilize licensed Marvel IP.

This decision reflects NetEase's current strategic shift. Facing declining growth and intense competition from Tencent and MiHoYo, Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. This restructuring almost resulted in the cancellation of Marvel Rivals. Sources claim Ding resisted the licensing fees for Marvel characters, pushing for original character designs instead. The attempted cancellation reportedly cost NetEase millions, yet the game launched and achieved significant success.

Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," exemplifies this trend. Over the past year, NetEase has ceased investment in overseas projects, reversing previous substantial investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes projects projected to generate hundreds of millions annually, although a spokesperson denied the existence of arbitrary revenue targets for new game viability.

Internal challenges are also highlighted in the Bloomberg report, focusing on 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 significant that NetEase may not release any new games in China next year.

NetEase's reduced investment in games coincides with ongoing instability in 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.