What Led to NetEase CEO nearly Scrapping 'Marvel Rivals' Completely?
NetEase, currently riding high on the success of Marvel Rivals, finds itself in an odd position. Reports suggest substantial layoffs are looming, but the company nearly scrapped Marvel Rivals entirely due to Disney's high licensing fees for using its Marvel IP. According to Bloomberg, NetEase CEO William Ding considered cancelling the game over these costs, opting to create original characters instead of using famous Marvel ones, which risked making the game too similar to Overwatch. The attempted cancellation incurred millions in expenses, but Marvel Rivals ultimately persisted, leaving a massive impact on the gaming world.
Disney's high licensing demands were a challenge, and the ensuing negotiations were complex. Ding initially wanted to avoid paying for the rights to use popular Marvel characters like Wolverine and Spider-Man. This reluctance led to discussions about replacing these characters with original designs, significantly increasing development costs. However, the pursuit of these original characters and the subsequent delays resulted in millions of dollars being spent during development. NetEase ultimately reached a licensing agreement with Disney, allowing the game to proceed with Marvel characters.
Despite the initial hurdles, Marvel Rivals was released on December 6, 2024, and became a huge success. Drawing over 40 million players, the game's success underscores the importance of licensed IPs in the gaming industry. NetEase highlighted its strong relationship with Marvel, regularly introducing new characters and aligning them with upcoming MCU projects, as exemplified by Fantastic Four.
The game's success notwithstanding, NetEase's plans to restructure and cut costs have led to layoffs, including the departure of the game's director, Thaddeus Sasser. This move reflects the company's focus on high-profitability projects and strategic restructuring.
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NetEase's attempts to reduce expenses and "shrink" its studios were aimed at competing with rivals like MiHoYo and Tencent. The high licensing costs for Marvel Rivals threatened to derail the project, but the game's success demonstrated the value of licensed IPs. The game's success could not have been achieved with original characters, further highlighting the impact of Marvel Brand.
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NetEase CEO William Ding initially considered avoiding the high licensing fees for using Marvel IP by creating original characters, positioning Marvel Rivals as a rival to Overwatch. However, the pursuit of original characters and subsequent delays resulted in substantial development expenses, making NetEase's Marvel rivals, like MiHoYo and Tencent, take notice. Despite initial challenges and subsequent layoffs, the success of Marvel Rivals largely underscored the importance of licensed IPs in the gaming industry.
