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February 23, 2025

How NetEase Almost Canceled Marvel Rivals and Why It Didn’t

Despite the massive success of Marvel Rivals, behind the scenes, NetEase faced significant challenges. Internal restructuring, widespread layoffs, and steep licensing fees nearly led to the cancellation of the game.

According to Bloomberg, NetEase’s founder and CEO, William Ding, almost scrapped Marvel Rivals due to cost-cutting measures and an expensive licensing deal with Disney. In an effort to streamline operations and compete with industry giants like MiHoYo and Tencent, Ding considered pivoting away from Marvel characters. This would have meant replacing beloved superheroes with original designs, making the game resemble Overwatch even more closely.

The decision to cancel the project was on the table, a move that would have cost NetEase millions. Thankfully, the game survived—and not only survived but thrived—drawing an impressive 644,269 players on Steam and peaking at over 437,000 concurrent users.

Marvel-branded games have had a mixed history. While some mobile titles have enjoyed longevity, high-profile releases like Marvel’s Avengers flopped due to design missteps that clashed with the Marvel IP. Similarly, despite positive reviews, Guardians of the Galaxy underperformed because licensing costs overshadowed its sales.

In contrast, Marvel Rivals fits naturally within the Marvel universe—a PvP shooter featuring iconic superheroes and villains. The Marvel brand was instrumental in cutting through the noise and building a passionate fanbase, ultimately proving the risky investment was well worth it.

Launching a successful multiplayer shooter is no easy task. Yet, Marvel Rivals has managed to sustain strong engagement across platforms such as Steam, Xbox, and PS5. The game’s success is attributed not only to the Marvel name but also to solid gameplay mechanics and a diverse character roster. Had NetEase abandoned the project, a game with entirely original heroes would have struggled to compete against established titles like Overwatch 2 and Apex Legends.

Despite Marvel Rivals’ current success, NetEase continues to navigate a period of uncertainty. The ongoing studio cuts and internal challenges could impact future projects. However, the survival and triumph of Marvel Rivals highlight that the investment in the Marvel license was a pivotal decision.

As NetEase streamlines its operations and adapts to market pressures, the future of Marvel Rivals and other projects remains a closely watched story. One thing is clear: had the game been canceled, the gaming landscape would look very different today.

Marvel Rivals stands as a testament to taking calculated risks. Against all odds, the game not only came to life but has thrived—proving that the Marvel brand and strategic vision were the keys to its success.

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