Layoffs at Marvel Rivals Reflect Broader Reductions at NetEase Games

Earlier this week, NetEase made headlines by cutting jobs at its Marvel Rivals development studio in Seattle, leaving many puzzled. After all, Marvel Rivals has been a massive hit, drawing in over 40 million players since its debut last December. This success has undeniably contributed to NetEase’s impressive $2.9 billion in revenue from gaming and services during that launch quarter.

Surprisingly, there were even reports that CEO Ding considered scrapping Marvel Rivals during its development phase. As the story goes, he wasn’t too keen on shelling out for Disney’s licensing fees for Marvel characters and toyed with the idea of having NetEase’s own artists craft replacement heroes. However, NetEase has denied these claims, according to Bloomberg.

Over the past year, NetEase has been pulling back from studios outside of China. This includes their divestment from Vancouver’s Worlds Untold, which had some big-name talent from BioWare like Mac Walters. Seattle’s Jar of Sparks, initiated by Xbox veteran Jerry Hook, and Tokyo’s Ouka Studio, known for their work on Visions of Mana for Square Enix, were also affected. It appears Ding has tightened the reins even back home, with speculations suggesting that NetEase Chinese studios might not roll out any major releases by 2026 because of the cuts.

Hot on the heels of Bloomfield’s piece, Game File broke another bombshell on Friday. They reported that NetEase plans to pull back from most of their international teams. This sweeping move might impact more than a dozen studios they support, including newer players like T-Minus Zero Entertainment, started by ex-BioWare Austin VP Rich Vogel, and Fantastic Pixel Castle, where Greg Street—formerly with World of Warcraft and League of Legends—is bringing a fresh MMORPG to life. Notably, NetEase had previously acquired Grasshopper Manufacture and Quantic Dream in 2021 and 2022.

Fans of the Yakuza/Like A Dragon series have reason to keep an eye out. The news isn’t great, with reports of NetEase slashing budgets and time for the development of new titles from Japanese studios. Unfortunately, there are no plans to push or even publicize them. Nonetheless, upcoming projects from Ryu Ga Gotoku Studio, including a new Virtua Fighter and Project Century, are still in the pipeline for fans to savor.

NetEase’s decision to downsize its international operations is reflective of a broader trend of uncertainty plaguing the gaming industry, which has been grappling with substantial cutbacks in recent years.

Update: Game File’s latest findings add another layer to the story, painting a bleak picture of NetEase’s strategic retreat from its overseas ventures.