NetEase’s Situation May Be Bleaker Than Expected as CEO Nearly Scrapped Hit Game Marvel Rivals Over Licensing Costs

Marvel Rivals is making quite the splash in the gaming world these days, yet there was a moment when the CEO of its developer, NetEase, thought about scrapping it entirely.

This week unveiled some impressive numbers: Marvel Rivals has drawn in a staggering 40 million players—surpassing the entire population of Poland! While the game’s popularity is undeniable, the week also came with news that the American development team behind this colossal success faced layoffs. A Bloomberg report has now thrown a bit of light on the internal shuffles happening at NetEase. It turns out, the game almost didn’t see the light of day. NetEase’s head honcho, William Ding, reportedly wasn’t thrilled about paying Disney for the rights to use Marvel characters.

Rumor has it, Ding was so resistant to the idea that he wanted the designers to come up with their own characters instead. Discussions even touched on possibly cancelling the whole project—a decision that would have set NetEase back by millions. Yet, despite the turmoil, a spokesperson insisted that NetEase and Marvel have enjoyed a solid partnership since 2017. These revelations add to the narrative of upheaval at NetEase. Some years back, Ding aimed for the company to pull half its revenue from global markets, aggressively investing in talents like Toshihiro Nagoshi, known for the Yakuza series. However, even Nagoshi’s ventures seem to be treading murky waters now, though reports suggest they’ve been given a grace period to finalize existing projects.

The layoffs over recent years have been hard to fathom, and seem even more baffling when connected to a blockbuster like Marvel Rivals, which clearly has a cash flow ready to burst. In response to news of job cuts, NetEase stated that while the “core development team” in China remains dedicated to delivering top-notch gaming experiences, only time will tell if they can continue rolling out a new character every six weeks as planned.