Last week, the video game industry was thrown into confusion when NetEase axed the US team who worked on Marvel Rivals, notwithstanding the success of the franchise. New reports allegedly paint a gloomy picture of the company’s intent.
A new report published by Stephen Totilo on Game File hinted that Chinese gaming giant is going through a reform that could see over a dozen studios the gaming giant has opened or invested in either being shut down or layoff employees.
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Liquid Swords last week announced redundancies which was soon followed by the revelation that Seattle-based Marvel Rival teams have also been laid off. Totilo’s report gave insights into the ongoing reforms.
“NetEase is actively shopping around more of its non-Chinese studios—many of the very same ones it announced over the last three years—two people familiar with the company’s efforts tell Game File. Neither individual was authorized to speak about NetEase’s plans publicly.”
The unnamed sources told Game File that the Chinese gaming titan was planning to divest oversea teams which could lead to studio closures around the world. It is believed when NetEase cuts off funding, their previously backed studios can only continue to exist if they can secure new funding sources.
The Chinese gaming giant rarely comments on reports on its operations, although it was noted that the company and its studios are “in constant review and evaluation, and NetEase will determine changes needed to be made”.
The NetEase saga bears semblance to the reforms that Embracer took in 2023, which saw over 4,000 employees laid off, including the shutdown of prominent studios like Volition, the maker of Saints Row.
Is it possible that the decision taken by NetEase has something to do with the United States and China trade war which President Trump has ignited again? If it does, it yet again reinforces the bon mot that when two elephants fight, the ground suffers.
