NetEase has announced layoffs affecting its US-based development team for the popular game Marvel Rivals. This decision comes despite the game attracting a substantial player base of 40 million. The layoffs reportedly include key personnel, such as one of the game’s directors.
Analyst Daniel Ahmad from Niko Partners attributes part of this downsizing to geopolitical risks that have influenced various Chinese gaming companies. However, he emphasizes that the situation is more complex, indicating that NetEase is recalibrating its global strategy.
In addition to the Marvel Rivals team, NetEase has made significant cuts across its global games business, including reductions at studios in Japan, Canada, and the US. The company’s aggressive expansion between 2019 and 2023 aimed to enhance its presence in the international gaming market.
Ahmad notes that the core development team for Marvel Rivals remains in Guangzhou, China, which includes another game director. The recent changes reflect a broader trend among Chinese gaming firms, as they reassess their overseas investments and operations.
NetEase’s strategy shift is driven by rising costs and diminishing returns in recent years. This realignment aims to streamline operations and mitigate risks associated with changing US-China policies. Meanwhile, the US video game industry has faced significant layoffs, even as some companies like Electronic Arts report substantial profits.
For more details, visit the original article on GameSpot.