NetEase has officially confirmed the layoffs affecting the development team behind Marvel Rivals, as detailed in a statement provided to PC Gamer. A representative from the company stated, “We recently made the difficult decision to adjust Marvel Rivals’ development team structure for organizational reasons and to optimize development efficiency for the game.” This restructuring led to a reduction in the design team based in Seattle, which is part of a broader global design initiative supporting Marvel Rivals. The company expressed its gratitude for the hard work and dedication of those impacted, emphasizing a commitment to treating them with confidentiality and respect for their individual contributions.
Despite the layoffs, NetEase reassured stakeholders that the core development team in China remains steadfast in its mission to deliver an exceptional gaming experience. “We’re investing more, not less, into the evolution and growth of this game,” the representative added, highlighting plans to introduce new superhero characters, maps, features, and content aimed at enhancing the live service experience for players worldwide.
Industry Reactions
While NetEase did not disclose the exact number of employees affected, it confirmed that there are currently no Seattle-based developers working on Marvel Rivals. The game has emerged as a significant contender in the hero shooter genre, boasting over 200,000 active players on Steam alone. Thaddeus Sasser, the game director at NetEase, expressed his disbelief on LinkedIn, stating, “This is such a weird industry. My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games…and were just laid off!”
Another developer, Burrows, shared his sentiments on social media, reflecting on the unexpected nature of the layoffs despite the game’s success. “Welp, just got laid off from my job working on Marvel Rivals with NetEase,” he wrote. “It was an enormous pleasure to work with my American coworkers who join me in this sad culling. Just couldn’t dodge that big boot I guess, no matter how big the success of the gig.”
The rationale behind these layoffs raises questions, particularly given the game’s impressive financial performance, reportedly generating an estimated 6 million in its first month. However, as seen with other titles like Multiversus, a strong launch does not guarantee long-term success. The core development team, primarily based in China, faces the challenge of maintaining momentum while navigating the complexities of such a significant staffing change.
We are thrilled to announce that 20 million players have joined Marvel Rivals! Our gratitude for each of you is immense!
The spray is ready now, and we also included this number in the spray! Thank you for helping us achieve this milestone.
Log in from December 20th,… pic.twitter.com/tr0k6NYZ95December 17, 2024
Some industry observers speculate that this may have been part of a broader strategy: to launch Marvel Rivals and subsequently streamline the team responsible for its ongoing development. NetEase has been scaling back its U.S. operations in recent months, having ceased funding for newly established studios such as Worlds Untold and Jar of Sparks, and reportedly laying off most employees at Ouka Studios prior to the release of their game, Visions of Mana.
While NetEase is known for making decisive cuts when deemed necessary, the timing of these layoffs amidst the success of Marvel Rivals is particularly perplexing. The game, still in its formative stages, may require a stable and dedicated team to navigate the challenges ahead and ensure its continued growth in the competitive gaming landscape.
