The games industry has been hit with over 20,000 layoffs since 2023. It feels like new announcements of team reductions and studio closures roll out every week or so. With an industry in crisis, you would expect major success stories to stick out and be rewarded.

According to a report from Bloomberg, the cuts to the North American team working on Marvel Rivals aren’t an anomaly. NetEase founder and CEO William Ding is reported to have cut hundreds of jobs, closed studios, and taken a firmer hand with the company’s Japanese teams — including the one led by former Ryu Ga Gotoku Studio head Toshihiro Nagoshi.

NetEase CEO William Ding's refusal to pay for Marvel licenses nearly resulted in the cancellation of Marvel Rivals.

Marvel Rivals was nearly canceled by NetEase's founder before its release, a source reportedly close to the game's publisher claims.

During the whole fiscal year 2024, NetEase Games brought in $11.5 billion, another slight plus compared to the previous year. The revenues from mobile games made up around 73% of the total, down around 1.5% from the fiscal year 2023. NetEase attributed this to both Marvel Rivals and its long-running wuxia battle royale game Naraka: Bladepoint.

Marvels Rivals, which has been a huge success for publisher NetEase since its launch last year, reportedly almost didn't make it to release. It's claimed the company considered cancelling the project because its CEO objected to paying Disney for use of its characters.

NetEase's Marvel Rivals can't be described as anything less than a hit, netting ten million players in just three days from launch and raking in millions for developer NetEase in the weeks since. But a new report suggests that NetEase CEO and founder William Ding nearly canceled the game due to a reluctance to use licensed IP.