NetEase Lays Off U.S. Developers Despite Marvel Rivals' Massive Success

The Chinese gaming giant cites cost-cutting and efficiency optimization as reasons for layoffs, raising concerns about its commitment to overseas investments.

NetEase laid off members of the U.S.-based Marvel Rivals development team, including key designers, despite the game's $136 million revenue in its launch month.
The company stated the layoffs were part of a broader effort to 'optimize development efficiency' and restructure its global design teams.
Industry insiders speculate that NetEase may be scaling back its overseas investments, citing high costs and confidence in China's growing triple-A game development capabilities.
NetEase denied claims it is divesting its international holdings, affirming its commitment to global expansion but acknowledging some strategic adjustments in its overseas operations.
The layoffs reflect broader challenges in the gaming industry, including post-COVID market corrections, rising costs, and geopolitical tensions influencing business strategies.