NetEase's Marvel Rivals, a resounding success with over ten million players in its first three days and millions in revenue for NetEase, almost never saw the light of day. A new Bloomberg report reveals that CEO William Ding nearly canceled the game due to his initial reluctance to utilize licensed Marvel IP.

This decision stems from NetEase's current restructuring strategy. Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to combat recent growth stagnation and compete with industry giants Tencent and MiHoYo.

The report indicates that Ding's aversion to licensing fees for Marvel characters almost led to the game's cancellation. He reportedly attempted to convince developers to redesign characters using original concepts. This near-cancellation reportedly cost NetEase millions, yet the game launched and achieved significant success.

However, the downsizing continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," underscore this trend. Over the past year, NetEase has halted investments in overseas projects, previously active in partnerships with studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests Ding's prioritization of games projected to generate hundreds of millions annually, although NetEase denies using arbitrary revenue targets for game viability.

Internal sources paint a picture of instability within NetEase, highlighting Ding's volatile leadership style. He's described as impulsive in decision-making, prone to frequent changes of heart, and demanding long working hours from employees. The recent appointment of numerous recent graduates to senior leadership positions further adds to the internal uncertainty. The report suggests the sheer number of canceled projects might even prevent NetEase from releasing any new games in China next year.

NetEase's retreat from game investments coincides with a period of widespread uncertainty in the global games industry, particularly in Western markets. Recent years have witnessed numerous layoffs, cancellations, and studio closures, alongside the underperformance of several high-budget, high-profile titles.