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

NetEase's Marvel Rivals: A Near Miss and a Ten-Million-Player Success

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 CEO William Ding nearly canceled the project due to reservations about using licensed intellectual property.

This revelation comes amidst a period of restructuring at NetEase. Ding is reportedly streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio, addressing recent growth stagnation and bolstering competition with industry giants Tencent and MiHoYo.

Bloomberg sources indicate that Ding's initial reluctance to pay licensing fees for Marvel characters almost led to Marvel Rivals' cancellation. He reportedly attempted to convince developers to utilize original character designs instead. While this near-cancellation reportedly cost NetEase millions, the game ultimately launched to considerable success.

The restructuring continues. Recent layoffs at the Seattle Marvel Rivals team, attributed to "organizational reasons" by NetEase, underscore this ongoing process. Furthermore, Ding has halted investment in overseas projects, marking a significant shift from previous substantial investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests a focus on projects projected to generate hundreds of millions annually, although NetEase denies setting arbitrary revenue targets for game viability.

Internal challenges are also highlighted in the Bloomberg report, focusing on Ding's leadership style. Sources describe him as decisive but prone to changing his mind frequently, demanding long working hours from staff, and appointing recent graduates to senior management 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 widespread uncertainty within the global games industry, particularly in Western markets. The past few years have witnessed numerous layoffs, cancellations, and studio closures, alongside high-profile game failures despite significant financial backing.