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

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

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, addressing recent growth stagnation and bolstering competition with Tencent and MiHoYo.

This streamlining nearly resulted in the cancellation of Marvel Rivals. Sources indicate Ding's reluctance to pay licensing fees for Marvel characters led him to push for original character designs. The attempted cancellation reportedly cost NetEase millions, yet the game launched and achieved significant success.

Despite this success, the restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," exemplify this trend. Over the past year, Ding has halted investments in overseas projects, reversing previous substantial investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes games projected to generate hundreds of millions annually, although a spokesperson denied the existence of arbitrary revenue targets for new 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 launch any new games in China next year.

NetEase's reduced investment in games coincides with ongoing industry instability, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant investment.