NetEase Games recently laid off US-based developers from the Marvel Rivals team, despite the game's success. This surprising move follows a broader strategic shift by NetEase within North America. Let's delve into the details and the upcoming Season 1 update.

NetEase's Strategic Shift Impacts North American Studios

Marvel Rivals US Team Laid Off

On February 19, 2025, Thaddeus Sasser, the director of Marvel Rivals, announced on LinkedIn that he and other California-based developers had been laid off by NetEase Games. His post highlighted the irony of the layoffs occurring after the team's successful launch of a new franchise. Undeterred, Sasser is actively using his LinkedIn profile to help his former colleagues find new employment opportunities, showcasing their skills and experience. He specifically highlighted Garry McGee, the game's technical designer, praising his abilities and recommending him highly.

NetEase's Controversial North American Moves

Marvel Rivals was developed by teams in both China and Seattle. While Sasser's team focused on game and level design, the Chinese team handled other aspects of development. The success of the game didn't prevent these layoffs, reflecting a broader trend within the industry. Although NetEase hasn't publicly commented on the layoffs, industry rumors suggest a potential withdrawal from the North American market. This is supported by NetEase's previous actions, including withdrawing funding from Worlds Untold studio in November 2024 and ending its partnership with Jar of Sparks in January 2025.

Marvel Rivals Season 1 Update: Second Half

New Heroes, Maps, and Balance Changes

Despite the layoffs, Marvel Rivals continues to update. The second half of Season 1, as announced on the game's YouTube channel on February 19, 2025, introduces new heroes (The Thing and Human Torch, completing the Fantastic Four), a new map (Central Park, featuring Dracula's castle), balance adjustments, and tournaments. Creative Director Guangguang and Lead Combat Designer Zhiyong spearheaded these changes.

Notable balance adjustments include increased energy costs for characters with quick ultimate recharge (like Cloak & Dagger and Loki), reduced survivability for certain Vanguard characters (Doctor Strange and Magneto), and buffs to movement-based Vanguards. Overpowered heroes like Storm and Moon Knight are also receiving nerfs. A planned rank reset was announced but later removed due to player feedback. For more details on the rank reset reversal, please see this article.