Marvel Rivals, the latest hit in the third-person shooter genre, has taken the gaming world by storm, amassing over 40 million players. However, according to a Bloomberg report, the game's very existence was once in jeopardy. The report suggests that NetEase CEO William Ding was initially hesitant to pay Disney for the rights to use Marvel characters, leading to discussions about canceling the game altogether.
A Costly Consideration
As per the report, Ding at one point instructed NetEase artists to create their own superhero designs, attempting to bypass Disney’s expensive licensing fees. While this move could have saved NetEase millions, it ultimately proved to be a costly misstep, wasting time and resources before the decision was reversed. NetEase has denied these claims, stating that the company has maintained a strong relationship with Marvel since 2017.
The Financial Gamble of Live Service Games
Ding’s hesitation is understandable, considering the unpredictable nature of live service games. The gaming industry has witnessed massive failures in this space, with Marvel’s Avengers being a prime example. Launching a high-budget multiplayer game carries financial risks, and executives are often wary of investing in projects without guaranteed long-term success. Despite this, Marvel Rivals has defied expectations, securing its place as a major title for NetEase.
Studio Layoffs Despite Success
Ironically, even as Marvel Rivals soars in popularity, NetEase has laid off several developers from its Seattle studio who worked on the game. Additionally, the company recently pulled funding from two newly established studios—Worlds Untold and Jar of Sparks—raising concerns about its long-term commitment to new game development. The Bloomberg report also suggests that due to financial restructuring, NetEase may not release any major games in China in 2026.
The Future of NetEase and Live Service Games
Recent decisions by NetEase indicate a shift toward mass-market games with high revenue potential. The company has been focusing on titles like Eggy Party, a multiplayer mobile game designed for mainstream appeal and microtransaction-driven profits. According to sources, NetEase views games without the potential to generate hundreds of millions of dollars per year as unviable investments. However, a company representative clarified that there is no “arbitrary revenue threshold” for game viability.
A Close Call That Paid Off
Despite Ding’s initial reluctance, the success of Marvel Rivals proves that the risk was worth it. The game continues to gain traction, and if NetEase can maintain its momentum, it could enjoy years of profitability. In hindsight, canceling the game or removing its Marvel characters would have been a critical misstep. For now, Marvel Rivals stands as a testament to the unpredictable yet rewarding nature of the gaming industry.
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