NetEase Games has recently laid off staff at its Marvel Rivals development studio in Seattle, marking a significant shift for the Chinese publisher. Despite Marvel Rivals attracting over 40 million players since its December launch and generating $2.9 billion in revenue, the company is making cuts.
Reports indicate that these layoffs are part of a broader strategy initiated by NetEase’s founder and CEO, William Ding. The company has reportedly reduced its workforce, closed studios, and tightened control over its Japanese teams.
In addition to the Seattle studio, NetEase has divested from several other international studios, including those in Vancouver and Tokyo. This trend reflects a shift in focus back to China, with predictions suggesting that major releases from its domestic studios may be limited in 2026.
Furthermore, NetEase is expected to divest from the majority of its overseas teams, impacting over a dozen studios. This includes recent establishments such as T-Minus Zero Entertainment and Fantastic Pixel Castle.
As part of this restructuring, funding and promotional efforts for new titles from Japanese studios have been curtailed. Despite these changes, fans of Ryu Ga Gotoku Studio can look forward to upcoming projects.
This situation mirrors a larger trend of uncertainty within the video game industry, which has seen significant cutbacks in recent years. For more details, visit the original article on Polygon.