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

NetEase's Marvel Rivals has been a resounding success, attracting ten million players within three days of launch and generating millions in revenue for developer NetEase. However, a recent Bloomberg report reveals that CEO and founder William Ding nearly canceled the game due to reservations about using licensed intellectual property.

The report highlights NetEase's current strategic shift: Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. This restructuring aims to create a more focused portfolio, counteracting recent growth slowdown and bolstering competition with rivals Tencent and MiHoYo.

This streamlining nearly resulted in the cancellation of Marvel Rivals. Sources indicate Ding initially resisted the cost of licensing Marvel characters, advocating for original character designs. This attempted cancellation reportedly cost NetEase millions, yet the game ultimately launched to considerable 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 significant investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes projects projected to generate hundreds of millions annually, although a company spokesperson denied the existence of arbitrary revenue thresholds for game viability.

Internal accounts from NetEase employees depict a challenging work environment marked by Ding's volatile leadership style. These accounts describe rapid decision-making, frequent changes of direction, pressure to work excessive hours, and the appointment of recent graduates to senior leadership positions. 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 widespread uncertainty in the global games industry, particularly in Western markets. Recent years have witnessed numerous layoffs, cancellations, and studio closures, alongside the underperformance of several high-profile, expensive games.