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 IP.

The report highlights NetEase's current restructuring: Ding is reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio, countering recent growth stagnation and bolstering competition with Tencent and MiHoYo.

This streamlining almost resulted in Marvel Rivals' cancellation. Sources say Ding initially resisted the cost of using licensed Marvel characters, advocating for original designs. This attempted cancellation reportedly cost NetEase millions, yet the game launched to considerable success.

Despite this success, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," exemplifies this. Over the past year, Ding has halted investment in overseas projects, reversing previous significant investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding prioritizes games projected to generate hundreds of millions annually, although a NetEase spokesperson denied setting "arbitrary blanket numbers" for game viability.

Internal challenges are also highlighted, focusing on Ding's leadership style. Employees described him as volatile and decisive, prone to frequent changes of mind, pressuring staff with excessive overtime, and appointing recent graduates to senior leadership positions. The frequency of project cancellations is so high that NetEase might 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 the West. Recent years have witnessed numerous layoffs, cancellations, and studio closures, alongside the underperformance of several high-profile, expensive titles.