Marvel Rivals Developer NetEase Lays Off US Team Despite Game's Success

Image credits: Image: NetEase Games

NetEase, the publisher of the popular free-to-play hero shooter Marvel Rivals, has laid off a significant portion of its US development team, despite the game's massive success. The news was broken by game director Thaddeus Sasser, who expressed his disappointment and confusion on LinkedIn, stating that his "stellar, talented team" had just been laid off after delivering an "incredibly successful new franchise" for NetEase Games. The layoffs have affected several team members, including level designers Jack Burrows and Garry McGee, who confirmed the news on their respective social media profiles.

The move has sparked confusion and concern in the gaming industry, as Marvel Rivals has been a huge commercial success, attracting over 250,000 daily concurrent players on Steam and generating an estimated $136 million in its first month alone. The game's success has been seen as a major breakthrough for NetEase, which has been looking to expand its presence in the Western gaming market. However, the layoffs suggest that the company may be re-evaluating its priorities and scaling back its operations in the US. The gaming industry has seen a significant number of layoffs in recent years, with over 25,000 employees losing their jobs since the start of 2023, and the trend shows no signs of slowing down.

NetEase's decision to lay off the Marvel Rivals development team has been seen as a surprise, given the game's success and the company's previous investments in the US gaming market. The company had previously funded several US-based studios, including Worlds Untold and Jar of Sparks, but has since pulled the plug on these projects. The layoffs have also raised questions about the future of Marvel Rivals, which is still in its early stages and requires ongoing support and development to maintain its player base. The game's success is a testament to the hard work and dedication of the development team, and it remains to be seen how the layoffs will affect the game's long-term prospects.

Some have speculated that NetEase may have planned to cut the team from the start, using the US development team to get the game off the ground before scaling back its operations. However, this theory has not been confirmed, and the company has not provided a clear explanation for the layoffs. The industry is watching the situation closely, as it may have implications for the future of game development and the role of US-based studios in the global gaming market. As the gaming industry continues to evolve, it is likely that we will see more consolidation and restructuring, and the Marvel Rivals layoffs may be just the beginning.

The timeline of events surrounding the layoffs is as follows: * November 2024: NetEase ends funding for Worlds Untold, a US-based studio founded by BioWare veteran Mac Walters * January 2025: NetEase pulls the plug on Jar of Sparks, a US-based studio founded by Halo and Destiny 2 veteran Jerry Hook * February 2025: NetEase lays off the Marvel Rivals US development team, despite the game's success * The layoffs have sparked a wider debate about the state of the gaming industry, with many calling for greater transparency and accountability from game publishers and developers. As the industry continues to grow and evolve, it is likely that we will see more changes and challenges, and the Marvel Rivals layoffs may be just the beginning.