Earlier this week, the gaming world was taken aback when NetEase, a prominent Chinese game publisher, decided to cut jobs at its Marvel Rivals studio located in Seattle. Given the game’s remarkable success, the move puzzled many in the industry. Since its launch in December, Marvel Rivals has attracted over 40 million players, contributing significantly to NetEase’s impressive $2.9 billion revenue in gaming and services during that period.
Interestingly, it seems that NetEase’s CEO, Ding, initially considered pulling the plug on Marvel Rivals even before it hit the market. Rumor has it that he was hesitant about paying Disney for the rights to use Marvel’s iconic superheroes and villains, and even thought about substituting them with characters created by NetEase’s own artists. However, NetEase has denied these claims according to Bloomberg.
Over the last year, NetEase has made significant changes by withdrawing its involvement from several studios outside China. This includes Vancouver’s Worlds Untold, spearheaded by former BioWare creative lead Mac Walters; Seattle’s Jar of Sparks, established in 2022 by Xbox alum Jerry Hook; and Tokyo-based Ouka Studio, known for developing Visions of Mana for Square Enix. Reports indicate Ding has also reduced local operations, with the cuts being so substantial that we might not see any major releases from NetEase’s Chinese studios come 2026.
Fans of Yakuza/Like A Dragon might find the news concerning, as NetEase appears to be scaling back on investing in new projects from Japanese studios, and has no intention of promoting these games. Nevertheless, enthusiasts can take comfort in knowing that Ryu Ga Gotoku Studio has some exciting releases in store, including a new Virtua Fighter and the mysterious Project Century.
These international layoffs at NetEase are part of a broader trend of uncertainty plaguing the video game industry, which has witnessed considerable downsizing in recent times. Despite the challenging landscape, the sector continues to evolve and adapt, keeping both players and developers on their toes.
