NetEase has recently faced criticism for laying off developers at its Western Marvel Rivals studio, despite the game achieving significant success with over 40 million players. According to a report from Bloomberg, the company’s CEO, William Ding, implemented sudden changes that included job cuts for hundreds of employees and a retreat from extensive foreign investment strategies.
NetEase’s Investment Background
Over the past several years, NetEase has invested heavily in various game studios located in North America, Europe, and Japan. Notable investments include:
- Behaviour Interactive
- Grasshopper Manufacture (acquired)
- Nagoshi Studio (acquired)
- Quantic Dream (acquired)
- Rebel Wolves
- Skybox Labs (acquired)
- Jar of Sparks
- Jackalyptic Games
- T-Minus Zero
- Worlds Untold
- Fantastic Pixel Castle
Impact of Funding Cuts
Recent months have seen funding cuts for studios such as Jar of Sparks and Worlds Untold, both of which are now actively searching for alternative publishers. Additionally, the closure of Ouka Studios, developer of Visions of Mana, occurred despite the game’s favorable launch reception. Other Japanese studios, including Nagoshi’s, have been given limited time to finish ongoing projects, with no additional financial support or marketing efforts planned by NetEase.
Future Prospects
Western studios backed by NetEase, such as Jackalyptic, are also in search of new partnerships. Jackalyptic is currently developing a Warhammer MMORPG that was recently showcased at a trade event, yielding a positive reaction from attendees, indicating potential for securing future support.