NetEase has announced that its popular hero shooter, Marvel Rivals, has reached a milestone of 40 million players. Following the company’s layoffs at its Seattle studio, the news of this significant achievement underscores the game’s enduring popularity. Shortly after its December 6 launch, the game topped Steam’s global top-sellers chart, gaining over 10 million registered users within the first 72 hours. With the game’s momentum continuing to build, the total number of players has exceeded 40 million.
Massive Layoffs Despite Marvel Rivals Success
In January, the game’s Season 1 update sparked a renewed surge in interest, pushing Marvel Rivals to the top of Steam’s top sellers and most-played charts worldwide. Furthermore, NetEase reported a gross profit of $2.2 billion for the quarter, representing a slight decline of $2.3 billion earned in the same period of 2023. Primarily, the downturn in new revenues from mobile games is attributed to this decrease. However, the increased net revenues from PC games, particularly from licensed titles, partially offset this decline. Notably, the success of the hero shooter may have contributed to this uptick in PC game revenues.
William Ding, the CEO of NetEase, highlighted the company’s innovative strides in 2024. Specifically, he showcased its ability to deliver captivating gaming experiences that resonated with players worldwide. Through its new titles, NetEase not only successfully redefined its gameplay but also established new industry standards. Due to significant enhancements in design, storytelling, and immersive content, the company’s legacy franchises experience a resurgence in popularity. NetEase building on its existing successes allowed it to effectively revitalize its portfolio, further solidifying its position it the game industry.
NetEase Adapts to Evolving Geopolitical Landscape
NetEase continues to diversify its game portfolio across various genres and captivate its growing global audience. As a result, the company remains committed to driving creativity and innovation by collaborating with strategic partners and top talent to shape the future of gaming trends. On another note, the company has recently laid off its US-based Marvel Rivals development team despite the game’s popularity. According to NetEase, organizational reasons and the need to optimize development efficiency motivated this decision. Instead of the game’s performance, this move suggests that internal restructuring was the driving force behind the massive layoffs.
Following the layoffs and to reassure stakeholders, NetEase would continue working on Marvel Rivals without interruption. Mainly, it put the core development team for Marvel Rivals, based in China, at the helm of the game’s development. For many, however, the protectionist policies implemented during Donald Trump’s presidency may have played a part in the layoffs of US-based developers. Unfortunately, some of the claims have undertones of racism, but analyst Daniel Ahmad of Niko Partners believes that this speculation may be credible. As an expert on Asian and MENA markets, Ahmed attributes the company’s streamlining of overseas operations to a desire to minimize risks associated with US-China policy changes.
