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 new 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 implementing cost-cutting measures, including 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 its competitiveness against rivals Tencent and MiHoYo.

This streamlining almost resulted in the cancellation of Marvel Rivals. Sources claim Ding initially resisted the cost of licensing Marvel characters, advocating for original character designs instead. This attempted cancellation reportedly cost NetEase millions, yet the game ultimately launched to significant success.

Despite this success, the restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," underscore this ongoing process. 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 with the potential to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue targets for new game viability.

Internal challenges at NetEase are also described in the Bloomberg report, focusing on Ding's leadership style. Sources depict Ding as decisive but prone to rapid changes in direction, demanding long working hours, and appointing recent graduates to 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 reduced investment in game development coincides with ongoing uncertainty within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, coupled with the underperformance of several high-profile, expensive titles.