NetEase's Marvel Rivals, a resounding success with ten million players in its first three days, has generated millions for the developer. However, a recent Bloomberg report reveals that CEO William Ding nearly canceled the project due to reservations about using licensed IP.

This report highlights NetEase's current restructuring: Ding is implementing job cuts, studio closures, and scaling back overseas investments. The aim is to streamline operations, counter recent growth stagnation, and better compete with industry giants Tencent and MiHoYo.

This restructuring nearly resulted in the cancellation of Marvel Rivals. Sources claim Ding initially opposed the licensing fees for Marvel characters, advocating for original character designs. This near-cancellation reportedly cost NetEase significant funds, yet the game launched to considerable success.

The restructuring continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of overseas investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment, demonstrate this shift. The report suggests Ding prioritizes projects with potential for hundreds of millions in annual revenue, although NetEase denies using arbitrary revenue targets for game viability.

Internal challenges at NetEase are also highlighted, focusing on Ding's leadership style. Employees describe his volatile decision-making, pressure for extended work hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations raises concerns about NetEase's potential lack of new game releases in China next year.

NetEase's reduced investment in game development coincides with ongoing instability within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside numerous high-profile game failures despite significant investment.