Marvel Rivals team hit with layoffs despite huge success of game

NetEase lays off Marvel Rivals team despite game's success.

: NetEase has laid off development team members from Marvel Rivals, including the game director, despite its success since its December debut. The game remains in the top ten on Steam and had its first major content update just prior to the layoffs. Many expressed disbelief at the layoffs, especially since Marvel Rivals is a live service game thriving in a challenging market. NetEase claims the layoffs are part of a broader business strategy, unrelated to foreign investment cuts.

Chinese publisher NetEase has faced backlash after laying off members of its Marvel Rivals development team, including the game director, Thaddeus Sasser. These layoffs coincide with the game’s high performance, having consistently remained in Steam’s top 10 since its release in December, with its first major content update just preceding the cuts.

Despite the game’s success and positive reception, particularly for its integration of Marvel lore and straightforward gameplay, staff expressed confusion and disbelief. Game artist Del Walker commented on the industry's unpredictability, especially given Marvel Rivals' status as one of the rare success stories among live service games.

NetEase, however, contends that the layoffs are part of a strategic business decision to scale down select studios, citing no influence from external factors like US tariffs. The company maintains a strong future pipeline with titles like FragPunk and Ananta and denies intent to reduce overseas investment, aiming for diversity in its gaming genres and future projects.

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