Layoffs at Marvel Rivals Signal Larger Reductions at NetEase Games

Earlier this week, NetEase decided to trim its workforce at the Marvel Rivals development studio in Seattle, leaving many puzzled. Why would the Chinese game publisher cut jobs on a project that’s been nothing short of a triumph? Since it launched in December, Marvel Rivals has drawn in a staggering 40 million players, significantly contributing to NetEase’s impressive $2.9 billion in quarterly revenue from gaming and services.

In an interesting twist, it’s been reported that Ding, the CEO, had even considered pulling the plug on Marvel Rivals before it hit the market. He was apparently concerned about the cost of Disney’s licensing fees for Marvel’s iconic superheroes and villains. There was even talk of possibly swapping out these well-known characters with original designs by NetEase artists. Though, according to Bloomberg, NetEase has denied this ever happened.

Over the last year, NetEase has taken a step back from several studios beyond China’s borders. This includes Worlds Untold in Vancouver, led by former BioWare creative Mac Walters, Seattle’s Jar of Sparks started by Xbox veteran Jerry Hook, and Tokyo’s Ouka Studio, known for Visions of Mana developed for Square Enix. Ding has reportedly also made similar cutbacks in local studios, with rumors suggesting these reductions might delay any major Chinese releases until 2026.

For fans of Yakuza/Like A Dragon, there’s a bit of disappointing news. NetEase has apparently pulled back on additional investment and time for new projects from its Japanese studios and has decided not to support them through marketing or promotion. However, there’s a silver lining as fans can still look forward to more exciting releases from Ryu Ga Gotoku Studio, including a new Virtua Fighter and Project Century.

These layoffs at NetEase’s international studios reflect a broader wave of uncertainty that has hit the video game industry, which has faced significant cutbacks in recent years.