Marvel Rivals Fate Hangs Amidst IP Uncertainty

NetEase's Marvel Rivals: A Success Despite Near Cancellation

NetEase's Marvel Rivals has been a resounding success, attracting ten million players within three days of its launch and generating millions in revenue for the developer. However, a recent Bloomberg report reveals that NetEase CEO William Ding nearly canceled the game due to his initial reluctance to utilize licensed Marvel intellectual property.

This report highlights NetEase's current strategic shift under Ding's leadership. The company is undergoing significant restructuring, including job cuts, studio closures, and a withdrawal from overseas investments. The aim is to create a more focused portfolio, addressing recent growth stagnation and bolstering competition against industry giants Tencent and MiHoYo.

Bloomberg sources indicate that Ding's aversion to licensing fees for Marvel characters almost led to the game's cancellation. He reportedly attempted to convince developers to use original character designs instead. While this near-cancellation allegedly cost NetEase millions, the game ultimately launched and achieved remarkable success.

Despite this triumph, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," underscores this ongoing process. 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 that Ding prioritizes projects projected to generate hundreds of millions annually, although NetEase disputes the existence of a rigid revenue threshold for new game viability.

Internal challenges at NetEase have also been highlighted by employees speaking to Bloomberg. They describe Ding's leadership style as volatile, characterized by rapid decision-making, frequent changes of mind, pressure to work excessive hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations is so significant that NetEase may not release any new games in China next year.

NetEase's reduced investment in game development coincides with a period of considerable uncertainty within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, game cancellations, studio closures, and high-profile game failures despite substantial investment.