Sources: Chinese game publisher NetEase has been directed to divest its overseas holdings, starting with hit game Marvel Rivals, which laid off its Seattle team
Chinese game publisher NetEase raised fears with recent moves that it is unloading as much as all of its overseas holdings …
VentureBeat
Context & Ripple Effects
The reported divestment directive would extend a broader pullback: NetEase was already reassessing Japanese studio investments with Tencent after limited hit production and a stronger domestic market, and its CEO subsequently cut jobs, closed studios, and reduced international investment.
It also follows a more fragile international operating context for NetEase after its long-running Activision partnership broke down, making ownership of overseas development and publishing assets more consequential.
First-order effects
NetEase would need to begin a sale process for overseas holdings, with Marvel Rivals identified as the starting point; the Seattle team’s layoffs leave affected staff facing immediate disruption.
Potential buyers and remaining teams around Marvel Rivals would face uncertainty over who will fund, operate, and set the game’s international roadmap.
Second-order effects
A forced or accelerated sale process can narrow NetEase’s bargaining power and require prospective acquirers to price in operational continuity, staffing, and live-service commitments.
If divestments broaden, Chinese game groups may shift from owning overseas studios and portfolios toward smaller, more selective international exposure, concentrating development decisions closer to their core markets.
That would make cross-border game investment more contingent on policy and portfolio priorities, increasing ownership turnover for independent studios and live-service teams.
The trend: This is one data point in Chinese game publishers tightening overseas portfolios as domestic priorities and cross-border operating risk reshape global expansion strategies.
NetEase rep tells me the cut of the Marvel Rivals team in Seattle was a “difficult decision” made “to optimize development efficiency for the game” Full statement below Very unusual move given Rivals' massive success. But clear focus here is on “core” development in China [image]
Worth noting this round of layoffs only impacts the team in the US, not the core dev team in China. It's part of a broader reconsideration of NetEase's overseas investments and studios. The firm has pulled funding from a number of overseas teams over the past year.
⚖️ Balance Adjustments Incoming! We're making key hero balance adjustments to refine gameplay and expand strategic options. Check out the full details here >> https://www.marvelrivals.com/ ... 🛠️ Maintenance starts on February 21 at 1 AM PST and is estimated to last around 3 hour…
Very gross for people to “um actually” the Netease layoffs with “they were just a support group, not the Real Developers” like support devs do not bust their asses on live-service games, it's why some of them exist and still get work
The same day NetEase revealed two new character releases and the changes coming to the new season, it turns out their entire Seattle based dev team got laid off today. The game has literally made $136 million in the first month of release and they still just culled a whole team […
The unfortunate reality is that the main team at NetEase is in China and the western studio was the support arm. As western development costs rise, eastern studios will move development back to their main team and shutdown western arms. Marvel Rivals is one such example.
I know this is only the American team, but it's hard not to see this and think that even if a success like Marvel Rivals doesn't equal a safe job, the industry is probably pretty deeply fucked.
Why even work in an industry where no matter how successful you are, you can and will be tossed like trash in an instant. Very grim things happening in AAA companies.
Marvel Rivals Game Director and his entire Seattle based team has been laid off by NetEase according to LinkedIn posts Following one of the most successful game launches we have seen in a long time... [image]
If you're confused on the Marvel Rivals layoffs news, the team that got laid off were part of a smaller arm in Seattle. NetEase is primarily based in China, they used them to help launch the game and now they're gonna cut costs, replace, and get out of the US. So much greed.