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 streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to combat recent growth stagnation and compete with industry giants Tencent and MiHoYo.

The near-cancellation of Marvel Rivals, according to Bloomberg sources, stemmed from Ding's reluctance to pay licensing fees for Marvel characters. He reportedly attempted to convince developers to use original character designs instead. This decision, though ultimately reversed, allegedly cost NetEase millions.

The restructuring continues. The recent layoff of the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of overseas investments in studios like Bungie, Devolver Digital, and Blizzard Entertainment, exemplify this shift. The report suggests that Ding prioritizes projects projected to generate hundreds of millions annually, although NetEase denies using arbitrary revenue targets to assess project viability.

Internal sources cited by Bloomberg portray a challenging work environment characterized by Ding's volatile leadership style. This includes rapid decision-making, frequent changes of direction, pressure on employees to work excessive hours, and the appointment of recent graduates to senior leadership positions. The frequency of project cancellations has raised concerns about NetEase's potential lack of new game releases in China next year.

NetEase's retreat from game investments coincides with ongoing instability within the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, along with the underperformance of numerous high-budget, high-profile games.