NetEase’s Situation Worsens: CEO Allegedly Contemplated Cancelling Hit Game Marvel Rivals Over Licensing Fees

Marvel Rivals is making waves in the gaming world, but there was a time when the head of NetEase, the developer behind it, nearly pulled the plug. We recently learned that the game has attracted an impressive 40 million players—imagine, that’s more than the entire population of Poland! Despite this huge success, some US-based developers involved with the project have faced layoffs. A Bloomberg report (behind a paywall) gives us a glimpse into what’s happening behind the scenes at NetEase. It turns out that the game’s future once hung by a thread because CEO William Ding was hesitant about paying Disney for the rights to use Marvel’s iconic characters.

Ding apparently was so against this idea that he suggested the design team create their own original characters instead. There were even internal talks about canceling the game completely, a move that allegedly would have cost NetEase millions. Interestingly, a company spokesperson claims that NetEase and Marvel have maintained a strong partnership since 2017, which adds another layer of complexity to the story. The Bloomberg report also touches on Ding’s 2018 objective for NetEase: to generate half of its revenue from international markets by investing in developers like Toshihiro Nagoshi, the mind behind Yakuza. However, Nagoshi’s project seems to be in a bit of limbo, although he’s reportedly been granted time to finish ongoing work.

Layoffs are never the answer, especially when dealing with a juggernaut like Marvel Rivals, which appears to be a money-making machine. NetEase did highlight that despite the cuts, their core team in China is “fully committed to delivering an exceptional experience.” They remain optimistic about the ambitious plan to launch a new hero every 45 days, though we’ll have to wait and see if they can stay on track with these lofty goals.