By Sagar V. Mankar 
In the latest financial report, Chinese gaming giant NetEase announced that Marvel Rivals has reached an impressive milestone of 40 million players. However, the celebration was short-lived as the company recently laid off several employees from the game’s US development team.
The news first came to light when game director Thaddeus Sasser shared his frustration on a LinkedIn post, noting the irony of his “talented team” being let go right after delivering “a successful new franchise.”
Now, according to VentureBeat’s investigation, NetEase is losing interest in game development outside China, partly due to the high costs associated with US developers. The success of homegrown titles like Black Myth: Wukong has demonstrated that Chinese studios can produce high-quality AAA games, potentially reducing the need for Western development teams.
The ongoing trade tensions between the US and China may have also played a role in this decision, though NetEase strongly denies these claims. In a statement to VentureBeat, the company emphasized its commitment to global expansion, pointing to its “two-pronged” approach announced in 2022 that combines internal development with strategic investments.
The gaming giant, however, acknowledged scaling down some studios but maintained this affected only a small portion of its overseas operations. As reported in their financial documents, NetEase’s studios in North America, UK, Spain, and Japan continue to work on ongoing projects.
The company’s restructuring has already impacted several notable studios, including Worlds Untold (led by Mass Effect veteran Mac Walters), Jar of Sparks (headed by Halo Infinite’s former design chief Jerry Hook), and Liquid Swords (founded by Just Cause creator Christofer Sundberg).
Despite the layoffs, Marvel Rivals continues to receive updates. The game’s season 1.5 update is set to launch with new additions to its hero roster, including The Thing and Human Torch, suggesting that NetEase remains committed to the game’s ongoing development and success.