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 and millions in revenue for NetEase, nearly faced cancellation. Bloomberg reports that CEO William Ding, focused on streamlining NetEase's portfolio amid declining growth, initially resisted using licensed Marvel IP. He reportedly attempted to replace the Marvel characters with original designs, a decision that ultimately cost NetEase millions before the game's successful launch.

This cost-cutting strategy extends beyond Marvel Rivals. Recent layoffs at the Seattle Marvel Rivals team, attributed to "organizational reasons," and a halt to overseas investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment, highlight Ding's stricter approach. While NetEase denies setting arbitrary revenue targets, the report suggests Ding prioritizes projects projected to generate hundreds of millions annually.

Internal challenges are also emerging, according to Bloomberg sources. Ding's leadership style, characterized by rapid decision-making, frequent changes of heart, pressure on staff for extended work hours, and appointments of recent graduates to senior positions, has reportedly led to numerous project cancellations. This raises concerns that NetEase might not release any new games in China next year.

NetEase's shift in investment strategy reflects the broader instability in the global games industry, marked by recurring layoffs, cancellations, and high-profile game failures despite significant investment.