NetEase lays off its Marvel Rivals Seattle-based development team

China’s NetEase laid off its Seattle development team for Marvel Rivals on February 18. Multiple developers from the studio announced the sudden layoffs, but the company did not offer an explanation. 

NetEase reportedly laid off the Seattle-based development team responsible for its hit action game Marvel Rivals on February 18. Multiple developers, including game director Thaddeus Sasser, confirmed the layoffs. The director revealed his frustration over his team’s dismissal on LinkedIn. 

China’s NetEase lays off a Marvel Rivals development team 

Thaddeus Sasser mentioned some of his team members, including level designer Garry McGee, who was also part of the layoffs. He praised his work, saying he was a proactive problem solver. 

Marvel Rivals director and team laid off according to posts https://t.co/pphzvfDBYF pic.twitter.com/KRHDgjq2pq

— Wario64 (@Wario64) February 18, 2025

He added that they spent their time at an R&D branch developing new-level design and gameplay mechanisms.  The director added that gameplay mechanics significantly accelerated the team and often enabled the team to progress. 

Jack Burrows also confirmed the layoffs, saying that he could not dodge the big boot despite the game’s success. Gary McGee, in a separate post, also commented, “All good things must come to an end.”

NetEase Games later acknowledged the layoffs, saying they had made the decision for organizational reasons. The team added the layoffs were also meant to optimize the game’s development efficiency. 

A NetEase spokesperson noted that this led to the reduction of a design team based in Seatle that was part of a larger global design function supporting Marvel Rivals. He added that the company appreciated the hard work of all the development team members and would treat them respectfully, recognizing their individual contributions. 

The spokesperson assured the game’s fanbase that the Marvel Rivals team is still committed to delivering an exceptional experience and has invested more in the game’s evolution and growth. 

The spokesperson expressed the company’s excitement about delivering new superhero characters, maps, features, and content to ensure engaging live service for the worldwide player base.

Industry players weigh in on NetEase’s layoff decision 

Niko Partners director of research and insights Daniel Ahmad also commented that the layoffs only impacted the Seattle-based team, not the core Marvel Rivals development studio based in China. He added that the move was part of a broader reconsideration of NetEase’s overseas investments and studios. 

Ahmad added that the decision would not affect the game and that the current roadmap was still in motion. The director revealed the parent company, NetEase, began its reevaluation last year, resulting in the pulling of funds and the closure of studios in Japan and the United States. 

Ahmad noted the reevaluation was ongoing and being advanced for several reasons. He, however, acknowledged it was a bad look for NetEase to lay off a successful team despite its size. Ahmad added that, unlike other studios where performance and lack of results were issues, the same was not the case in Seattle.

Journalist Patrick Dane commented that, based on his experience at Marvel Rivals, there was a lot going on behind the scenes. He expressed that Marvel Rivals had always been pitched as a China-US hybrid. He expressed his initial confusion on why there were two development teams and the role of each team. The journalist suggested the layoffs were part of the US side being sloughed off.

The layoffs came as Marvel Rivals continued to experience its initial success, which saw over 10 million players download the hero shooter game. Data from Steam revealed the game’s live service title continued to peak at over 300,000 concurrent players daily on the platform two months after its launch. 

Marvel Rivals debuted on December 5 as a free-to-play action game for PC, Playstation, and Xbox. Players can take the role of different characters from the Marvel universe, including Iron Man and Spider-Man.

According to a community tracker, more than 14,600 positions were eliminated in the games industry in 2024. The total number of laid-off individuals since 2022 currently stands at 34,000. 

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