NetEase's Marvel Rivals has proven to be a smashing success, amassing ten million players within just three days of its launch and generating significant revenue for the developer in the subsequent weeks. However, a recent Bloomberg report reveals that the game's existence was almost jeopardized by NetEase CEO and founder William Ding's initial reluctance to utilize licensed IP.

According to Bloomberg, Ding is currently implementing a strategy to streamline NetEase's operations. This involves cutting jobs, closing studios, and pulling back from overseas investments. The aim is to create a more focused portfolio to counteract a recent dip in growth and to better compete with industry giants like Tencent and MiHoYo.

Bloomberg's report indicates that Marvel Rivals was nearly canceled as part of this downsizing effort. Sources suggest that Ding was hesitant to pay for the use of Marvel's licensed characters and attempted to convince artists to use original designs instead. This attempted cancellation reportedly cost NetEase millions, but ultimately, the game was released to its current success.

Despite the success of Marvel Rivals, the company's restructuring continues. Earlier this week, it was announced that the Marvel Rivals team in Seattle was laid off for "organizational reasons." Over the past year, Ding has also ceased investing in international projects, having previously made significant investments in studios such as Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding's belief that games not capable of generating hundreds of millions annually are not worth the company's investment, though a NetEase spokesperson clarified to Bloomberg that the company does not set "arbitrary blanket numbers" for determining a game's viability.

Employees speaking to Bloomberg have described a challenging internal environment at NetEase, attributing it to Ding's unpredictable leadership style. They claim Ding frequently makes rapid decisions and changes his mind, has pushed staff to work extended hours, and has recently appointed numerous recent graduates to key leadership positions. It's also alleged that Ding has canceled so many projects that NetEase might not release any games in China next year.

NetEase's retreat from game investments coincides with a period of uncertainty in the global gaming industry, particularly in Western markets. The sector has experienced consecutive years of widespread layoffs, project cancellations, and studio closures, alongside the underperformance of several high-cost, high-profile games that failed to meet company expectations.