NetEase in a rare moment of optimizing resource in middle of the Marvel Rivals hype

In a surprising turn of events, NetEase Games has recently laid off the entire US-based development team behind the successful hero shooter, Marvel Rivals. This decision has sent shockwaves through the gaming community, especially given the game’s massive success since its launch in December 2024.

The news broke on February 18, 2025, when Marvel Rivals game director Thaddeus Sasser took to LinkedIn to announce that his entire team had been let go. Sasser, a veteran in the gaming industry, expressed his disbelief and frustration over the sudden layoffs, highlighting the team’s significant contributions to the game’s success.

Marvel Rivals’ Success

Despite the layoffs, Marvel Rivals has been a runaway success. The game has garnered over 20 million downloads and consistently attracts hundreds of thousands of concurrent players on platforms like Steam. Its popularity has made it one of the most talked-about games in the competitive live service space.

NetEase cited “organizational reasons” and the need to “optimize development efficiency” as the primary reasons for the layoffs. The company emphasized that the core development team based in China remains committed to the game’s ongoing support and future updates.

The layoffs have had a significant impact on the affected employees, many of whom have been with NetEase since the game’s inception in January 2023. Sasser and his team specialized in game and level design, contributing to the innovative mechanics and engaging gameplay that have defined Marvel Rivals.

The gaming community has reacted with a mix of shock and anger to the layoffs. Many fans and industry professionals have expressed their support for the affected employees and criticized NetEase for cutting a team that played a crucial role in the game’s success.

NetEase’s Financial Performance

On February 20, 2025, NetEase announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. The company reported net revenues of RMB26.7 billion (US$3.7 billion), a slight decrease of 1.4% compared to the same quarter of 20231. However, the Games and Related Value-Added Services segment saw an increase in net revenues to RMB21.2 billion (US$2.9 billion), up 1.5% year-over-year.

Despite the layoffs, NetEase has assured fans that Marvel Rivals will continue to receive updates and new content. The company is investing more resources into the game’s evolution and growth, aiming to deliver an exceptional experience for its global player base.

The layoffs at NetEase Games serve as a stark reminder of the volatile nature of the gaming industry. While Marvel Rivals continues to thrive, the affected employees now face the challenge of finding new opportunities in a competitive job market. As the gaming community rallies around them, it remains to be seen how this decision will impact the future of Marvel Rivals and the broader industry.