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

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. 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 nearly resulted in the cancellation of Marvel Rivals. Sources claim Ding initially resisted the licensing costs associated with Marvel characters, attempting to convince developers to utilize original character designs instead. This near-cancellation reportedly cost NetEase millions, yet the game ultimately launched and achieved significant success.

The company's streamlining continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," underscore this trend. Furthermore, Ding has halted investments in overseas projects after previously investing heavily 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 NetEase denies using arbitrary revenue targets for game viability.

Internal challenges at NetEase have also been reported, focusing on Ding's leadership style. Sources describe him as decisive yet volatile, prone to rapid decision-making and frequent changes of heart. Allegations include pressuring employees to work excessive hours and appointing recent graduates to high-level leadership positions. The frequency of project cancellations has even raised concerns about NetEase's potential lack of new game releases in China next year.

NetEase's reduced investment in games coincides with broader industry uncertainty, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, with many high-profile, expensive games failing to meet expectations.