NetEase, one of the most prominent giants in the video game industry, is facing a concerning situation following the resounding success of its title Marvel Rivals, a hero shooter that has broken records in its category. Despite this triumph, recent reports suggest that the company was close to canceling the game due to its refusal to pay Disney for the use of its iconic characters. This conflict highlights the inherent tensions in the relationship between major video game companies and intellectual property holders in an increasingly competitive market.
Not even being a success protects you from being fired
However, the situation is not limited to the future of Marvel Rivals. The company has announced plans for significant cuts and a restructuring that could affect more than a dozen international studios, many of which have produced acclaimed titles. It is rumored that NetEase may choose to close or divest from prominent studios, which could hinder its recent international expansion.
Among the studios at risk are Nagoshi Studio, founded by the creator of Yakuza, Toshihiro Nagoshi; Grasshopper Manufacture, by Suda51; and Quantic Dream, responsible for Detroit: Become Human. Other prominent teams under review include Studio Flare, Pincool, and GPTRACK50, all led by industry veterans with a considerable legacy. A spokesperson for NetEase has indicated that all projects are under “constant review and evaluation” to determine necessary changes, although the company has refused to confirm the extent of the cuts.
NetEase’s international expansion strategy has been one of its main bets in recent years, but the direction the company could take under these circumstances raises concerns about its future in the increasingly competitive global video game market.
