Even more NetEase Games studios are at risk of closure following the company's decision to cut costs across some of its non-Chinese subsidiaries, according to a newly emerged report. However, the Marvel Rivals developer is currently said to be exploring other options.
On February 20, NetEase shared its consolidated financial report for the fourth quarter of 2024, reporting a 1.5% year-on-year revenue growth, but a 2.6% decline in gross profit. The results missed analyst expectations, and were followed by a Bloomberg report claiming NetEase nearly canceled Marvel Rivals and recently started aggressive cost-cutting efforts across its overseas game development divisions. The curtailing of the Chinese company's foreign game business is said to have been initiated by founder and CEO William Ding, who is supposedly wanting to refocus the group's resources on a smaller catalog of titles.
Marvel Rivals publisher NetEase addresses the recent layoffs at one of the game's development teams and shares insight into the situation.
While the downsizing has so far only affected several studios, many more could follow in the near future. Game File's Stephen Totilo reports that NetEase is presently "actively shopping around" multiple overseas studios, citing sources familiar with the company's...
