NetEase Faces Studio Closures, Layoffs Despite Marvel Rivals' Success

The gaming giant's restructuring efforts include layoffs, project cancellations, and potential divestment from international studios, even as Marvel Rivals surpasses 40 million players.

NetEase has laid off its U.S.-based Marvel Rivals development team despite the game's massive success, with over 40 million players and $2.9 billion in quarterly gaming revenue.
Reports suggest NetEase CEO William Ding previously considered canceling Marvel Rivals due to concerns over Disney's licensing fees, though the company denies this claim.
The company is reportedly reviewing its international investments, potentially leading to the closure of over a dozen non-Chinese studios if funding cannot be secured.
NetEase is shifting its focus to 'mass-market' games with high revenue potential, such as mobile multiplayer titles like Eggy Party, while scaling back support for less lucrative projects.
Marvel Rivals has implemented a ban on the third-party plugin Blitz, citing fairness concerns, and warned players against using similar software in the future.