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

NetEase's Marvel Rivals: A Near-Miss Cancellation and a $10 Million+ Success Story

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 IP.

This near-cancellation is part of a broader restructuring at NetEase. Ding is currently streamlining the company, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to combat recent growth stagnation and better compete with industry giants Tencent and MiHoYo.

The Bloomberg report suggests that Ding's hesitation stemmed from a resistance to the licensing fees associated with Marvel characters. He reportedly attempted to convince developers to redesign characters using original concepts. This attempted cancellation reportedly cost NetEase millions of dollars, yet the game ultimately launched and achieved significant success.

Despite this triumph, the restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," highlights this ongoing process. Furthermore, Ding has halted investment in overseas projects, reversing previous substantial investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report indicates that Ding prioritizes projects projected to generate hundreds of millions annually, though a NetEase spokesperson denies the existence of a rigid revenue threshold for new game viability.

Internal challenges at NetEase are also highlighted in the Bloomberg report, focusing on Ding's leadership style, described as volatile and prone to rapid decision-making and frequent changes of mind. The report also mentions pressure on staff to work excessive hours, the appointment of recent graduates to senior leadership positions, and a high number of canceled projects – potentially leading to a complete absence of new NetEase game releases in China next year.

NetEase's shift away from game investments coincides with a period of general uncertainty in the global gaming industry, particularly in Western markets. The past few years have been marked by widespread layoffs, project cancellations, studio closures, and high-profile game failures despite significant financial backing.