NetEase Nearly Canceled Marvel Rivals Despite Massive Success

NetEase CEO William Ding almost canceled Marvel Rivals over licensing costs, a move that reportedly cost the company millions. Despite the hiccup, the game launched successfully.Marvel Rivals hit 10 million players in three days, but a new report reveals NetEase CEO William Ding almost scrapped the game due to his reluctance to use licensed IP. The attempted cancelation reportedly cost the company millions, while layoffs and studio closures continue amid NetEase's strategic shift.

Marvel Rivals has been an undeniable success for NetEase, drawing in 10 million players within its first three days and generating millions in revenue. However, a new Bloomberg report suggests the game almost didn’t make it to launch.

According to sources, NetEase CEO and founder William Ding was initially opposed to developing a game based on licensed Marvel characters. Instead, he wanted artists to create original designs, avoiding the costs of licensing from Disney. His reluctance led to an attempted cancelation of the project, which ultimately cost NetEase millions before the game was finally released.

Despite the game's impressive performance, NetEase is actively shrinking its gaming division. This week, the company laid off the Marvel Rivals Seattle team, citing “organizational reasons.” Over the past year, NetEase has also pulled back from overseas investments, ending its push into Japanese and Western studios such as Bungie, Devolver Digital, and Blizzard Entertainment. Ding reportedly believes that games must generate hundreds of millions annually to justify continued development, though a company spokesperson denied that NetEase has a strict financial threshold for new projects.

Internal accounts paint a picture of instability at NetEase. Employees speaking to Bloomberg described Ding as a volatile leader who frequently changes direction, pressures staff to work late, and has filled key leadership roles with recent graduates. His decision to shut down multiple projects may result in NetEase releasing no new games in China next year.

The gaming industry as a whole is facing widespread uncertainty, with major publishers scaling back amid disappointing financial results. Layoffs, cancellations, and studio closures have become common, even for companies with previously strong track records. NetEase’s retrenchment reflects the broader industry trend, as companies seek to reduce risk and focus only on projects with guaranteed high returns.