Marvel Games and NetEase’s Marvel Rivals launched to roaring success in December 2024. It offered iconic heroes to play as, dynamic battlefields, open communication with fans, and consistent content. With the release of the Fantastic Four and new maps, the game was set to dominate 2025.
Despite great success, that still didn’t ward off layoffs.
Marvel Rivals Director and Development Team Laid Off
Thaddeus Sasser updated his LinkedIn profile, announcing he and the entire Seattle team that worked on Marvel Rivals have been laid off from the project.
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!
He uses his profile to highlight some of the team members he worked with, having a positive outlook on the future of himself and his team. In addition, one of the level designers confirms the unfortunate layoffs.
NetEase Official Statement on the Layoffs
A NetEase representative came out regarding the layoffs and said the following:
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 resulted in a reduction of a design team based in Seattle that is part of a larger global design function in support of Marvel Rivals. We appreciate the hard work and dedication of those affected and will be treating them confidentially and respectfully with recognition for their individual contributions.
They have also said the following regarding the game’s future support:
We want to reassure our fanbase that the core development team for Marvel Rivals, which continues to be led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen in Guangzhou, China, remains fully committed to delivering an exceptional experience. We are investing more, not less, into the evolution and growth of this game. We’re excited to deliver new super hero characters, maps, features, and content to ensure an engaging live service experience for our worldwide player base.
Why Is NetEase Doing This?
Considering the game has been a huge success, this news is shocking. The game remains the top-played game across all platforms and hangs alongside live service mainstays like Fortnite. It has recorded revenue numbers with MTX.
By all accounts, Marvel Rivals hits all the desired metrics. Nevertheless, does that matter when you have multiple hero shooters under your belt?
The Old Flame – Resuming Publishing Overwatch 2 in China
In the past, NetEase published Blizzard’s Overwatch 2 in Chinese markets. However, a major falling out between Activision and NetEase resulted in the latter not publishing Blizzard’s content in China. This resulted in their software leaving the region.
During the Microsoft purchase of Activision/Blizzard, discussions were underway regarding restoring the popular hero shooter in Chinese markets.
Said discussions, have had results, with the game set for release in Chinese markets on February 19th, 2025. Additionally, other pillar Blizzard games have returned to the region throughout 2024. What does this have to do with recent news surrounding Marvel Rivals?
I speculate that with Overwatch 2’s return to the region, combined with the return of Loot Boxes and other MTX models, the title will have great success and that NetEase could divert resources from Marvel Rivals, into their old cash cow.
Home Grown Heroes – Marvel Rivals being Soely Developed in China
Funding and supporting development in the United States can be costly, as game development for AAA titles in locations like New York, Seattle, and LA can be expensive.
In comparison, game development in China and Japan is less expensive. This has encouraged AAA developers worldwide to leverage that for support teams making our favorite AAA releases. NetEase, potentially, wants to cut costs and bring the entire Marvel Rivals development team in-house to save money.
Golden Armor – Marvel Licensing Fees for Marvel Rivals
One final factor to consider is that using Marvel IP is costly. Look no further than Marvel’s Spider-Man 2, where a significant chunk of profit PlayStation and Sony made from the title, returns to Marvel and Disney. And that’s just using the Spider-Man IP.
IP Costs for other heroes, like the X-Men and Avengers team members, are costly. Square Enix knows this well, with their Avengers and Guardians of the Galaxy titles costing a lot for the Japanese publisher. They lost so much from both ventures, that they sold off their western teams to Embracer to regain some of the lost profit.
For example, the Insomniac leak revealed if the X-Men projects don’t sell six million within the first year, Sony must pay nine million back to the comic juggernaut.
While deals for crossover projects like Marvel Rivals could be more flexible, NetEase investing in a less expensive hero shooter experience like Overwatch 2 in their home region is something to pay attention to.
Closing Thoughts
As someone who loved their time with Marvel Rivals, I’m saddened to see a successful video game release unable to prevent layoffs. One would assume launching a successful video game, would result in good studio health and retaining talent.
Hopefully, future layoffs aren’t in the future for the Marvel Rivals development team in China but if one of the industry’s most successful releases is affected by layoffs… Who isn’t?
