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

NetEase's Marvel Rivals: A Recent Success Despite Near Cancellation

NetEase's Marvel Rivals has proven a resounding success, attracting ten million players within three days of its launch and generating significant revenue. However, a recent Bloomberg report reveals that NetEase CEO William Ding nearly canceled the game due to reservations about using licensed IP.

This report highlights NetEase's current strategic shift. Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to counter recent growth stagnation and better compete with industry giants Tencent and MiHoYo.

This restructuring almost resulted in the cancellation of Marvel Rivals. Sources indicate Ding's reluctance to pay licensing fees for Marvel characters led him to propose using original character designs instead. This near-cancellation reportedly cost NetEase millions, yet the game proceeded to launch and achieve remarkable success.

Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," exemplifies this trend. Over the past year, Ding has also halted investments in overseas projects, reversing previous significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes projects projected to generate hundreds of millions annually, although a NetEase spokesperson refutes the existence of arbitrary revenue targets for new game viability.

Internal challenges at NetEase are also highlighted in the report, focusing on Ding's leadership style. Employees describe him as decisive yet volatile, prone to rapid decision-making and frequent changes of heart. Allegations include pressure 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 release any new games in China next year.

NetEase's reduced investment in game development coincides with broader industry uncertainty, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite substantial initial investment.