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 mobile game, 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 project due to reservations about using licensed intellectual property (IP).

This near-cancellation is part of a broader restructuring at NetEase, characterized by job cuts, studio closures, and a withdrawal from overseas investments. Ding aims to create a more focused portfolio to counter recent growth stagnation and better compete with industry giants Tencent and MiHoYo.

The Bloomberg report indicates that Ding's reluctance to pay licensing fees for Marvel characters almost led to Marvel Rivals' demise. He reportedly attempted to convince developers to switch to original character designs. While this near-cancellation allegedly cost NetEase millions, the game ultimately launched and achieved significant success.

The restructuring continues, evidenced by the recent layoff of the Marvel Rivals Seattle team, attributed by NetEase to "organizational reasons." Furthermore, Ding has 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, though NetEase denies using arbitrary revenue targets for game viability.

Internal challenges at NetEase have also been highlighted in the Bloomberg report, focusing on Ding's leadership style. Sources describe him as volatile and decisive, prone to frequent changes of mind, demanding long working hours from employees, and appointing recent graduates to senior leadership positions. The frequency of project cancellations is so high that NetEase may not release any new games in China next year.

NetEase's retreat from game investments coincides with ongoing uncertainty in the global gaming industry, particularly in Western markets. The industry has witnessed consecutive years of widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant investment.