Layoffs at Marvel Rivals Reflect Broader Reductions at NetEase Games

Earlier this week, NetEase made headlines by cutting jobs at its Marvel Rivals development studio in Seattle, leaving many puzzled about the reasoning behind this decision, given the project’s incredible success. Since its launch in December, Marvel Rivals has drawn in over 40 million players, contributing significantly to NetEase’s impressive $2.9 billion in gaming and services revenue for the quarter it debuted.

Interestingly, reports have surfaced indicating that CEO Ding considered canceling Marvel Rivals even before it hit the market. He was allegedly hesitant to pay Disney’s licensing fees for its iconic Marvel superheroes and villains and thought about using original hero designs from NetEase’s own artists instead. NetEase, however, dismissed this claim according to Bloomberg.

Over the past year, NetEase has stepped back from several international studios, including Vancouver’s Worlds Untold, led by former BioWare creative Mac Walters; Seattle’s Jar of Sparks, founded in 2022 by Xbox veteran Jerry Hook; and Tokyo’s Ouka Studio, the creative force behind Square Enix’s Visions of Mana. Rumors have it that Ding has also reduced operations closer to home, suggesting that the cuts are so significant that NetEase’s Chinese studios might not launch any major titles in 2026.

For fans of the Yakuza/Like A Dragon series eagerly waiting for new works from its former creators, the news isn’t too encouraging. NetEase is reportedly cutting back on funding for new projects from Japanese studios and doesn’t plan to actively market or promote them. However, there is a silver lining for fans: they can still look forward to more from Ryu Ga Gotoku Studio, which is working on a new Virtua Fighter and Project Century.

These layoffs at NetEase’s international studios mirror a broader trend of uncertainty sweeping through the video game industry, which has seen significant downsizing in recent years.