Marvel Rivals achieves success, yet developers face unexpected layoffs as NetEase cuts jobs

Several members of the Marvel Rivals development team, including the game director, have reportedly been laid off, despite the game remaining in Steam’s top ten since its debut in December.

The development team is based in both China and North America, with the majority of the work being handled in China.

However, only layoffs in North America have been reported.

Marvel Rivals game director responds

“This is such a weird industry," game director Thaddeus Sasser wrote in LinkedIn post. "My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games. And were just laid off."

Game artist Del Walker expressed confusion on Bluesky, stating that it was baffling to create one of the most successful live-service titles of the generation—despite widespread claims that live service is dead—only to be made redundant. He questioned the industry's current direction.

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Marvel Rivals achievements

Marvel Rivals is currently ranked sixth on Steam’s top-seller list and has just received its first major content update for Season 1.

The game has been praised for its engaging Marvel storyline and accessible gameplay. It has reportedly performed exceptionally well in its first month.

It remains one of the few recent success stories among live-service games, particularly in light of Sony’s recent announcement that some of its upcoming live-service projects have been cancelled.

More layoffs in Marvel Rivals?

There are concerns that further layoffs may occur at China-based studios due to US tariffs. However, in a statement to VentureBeat, NetEase denied any plans to reduce its foreign investments or shut down overseas gaming studios.

NetEase has outlined an extensive lineup of titles in development for 2025, spanning various genres, including FragPunk and Ananta, said the company. As part of its investment strategy, the company began downsizing two studios in late 2024, citing business evaluations as the reason. But it emphasised that this move affects only a small portion of its overseas studio portfolio.

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FAQs

1. How many employees from the Marvel Rivals development team were laid off by NetEase?
The exact number of employees laid off from the Marvel Rivals development team by the Chinese publisher NetEase has not been publicly disclosed. But reports indicate that the layoffs primarily affected team members in North America.


2. What is Marvel Rivals about?
Marvel Rivals is a live-service multiplayer game set in the Marvel Universe, developed by a studio under the Chinese publisher NetEase.