NetEase Confirms Marvel Rivals Layoffs
NetEase has confirmed the layoffs of the U.S.-based development team for Marvel Rivals, a game that has seen significant success since its release. The decision has left many in the gaming community confused, given the title’s strong performance and popularity.
This article will break down the layoffs, the game’s success, NetEase’s broader corporate strategy, and the impact on the industry.
Layoffs at NetEase: What Happened?
The layoffs were first announced by Marvel Rivals game director Thaddeus Sasser on LinkedIn. He expressed disappointment and surprise, stating that despite the game’s success, the team had been let go.
Key Details About the Layoffs:
- The layoffs affected the North American development team working on Marvel Rivals.
- The announcement came shortly after the game’s recent successful updates and new content additions.
- Level designer Jack Burrows also confirmed the news, voicing frustration over the industry’s unpredictability.
Many former employees and industry professionals reacted with shock, considering the game was performing well.
Marvel Rivals: A Success Story
Despite the layoffs, Marvel Rivals remains one of the biggest multiplayer games of 2025.
Key Highlights of the Game’s Success:
- Launched in December 2024, quickly gaining a massive player base.
- Ranked in the top 5 games on Steam, PlayStation 5, and Xbox Series X.
- Thousands of active players daily, engaging in superhero battles with beloved Marvel characters.
- Regular updates, including new characters like the Thing and Human Torch, were keeping the game fresh.
Given this momentum, NetEase’s decision to lay off the team appears unexpected.
Why Did NetEase Lay Off the Team?
While NetEase has not provided a detailed explanation, several possible reasons could explain the move:
1. NetEase’s Shift in U.S. Strategy
- In November 2024, NetEase shut down Worlds Untold, a studio led by Mac Walters (a veteran from BioWare).
- In January 2025, NetEase closed Jar of Sparks, a studio founded by Jerry Hook (former Halo and Destiny 2 developer).
- These actions suggest NetEase is scaling back its U.S. operations to focus on other regions, possibly China and Europe.
2. Cost-Cutting Measures
- Even successful games require large development budgets to sustain updates.
- NetEase may be restructuring to cut costs, despite the game’s success.
- The company could be looking to outsource development to cheaper regions.
3. Internal Business Strategy
- NetEase could be shifting development to an in-house team in China rather than maintaining a U.S.-based workforce.
- This strategy aligns with other major gaming companies consolidating their teams for efficiency.
Regardless of the reason, the layoffs raise concerns about job security in the gaming industry.
Industry Reaction: Developers and Gamers Speak Out
Developers Express Frustration
Many industry professionals took to LinkedIn and Twitter to express their concerns:
- Thaddeus Sasser: “This is such a weird industry. We were seeing great success, and then suddenly—gone.”
- Jack Burrows: “It’s heartbreaking to see such a talented team let go despite everything we accomplished.”
Gamers React on Social Media
Fans of Marvel Rivals have also voiced frustration. Many are worried about the game’s future updates and whether NetEase will continue supporting it.
- Some players left negative reviews on Steam and PlayStation Store, criticizing NetEase’s decision.
- Reddit and Discord communities have started campaigns urging NetEase to reconsider.
The Bigger Picture: What This Means for the Gaming Industry
Layoffs in the gaming industry are not new, but the Marvel Rivals situation highlights ongoing issues:
1. Job Security in Gaming
- Even successful projects do not guarantee long-term employment.
- Developers often face sudden job loss despite working on high-performing titles.
2. Industry Consolidation
- Large gaming companies are shifting towards centralized development hubs.
- More outsourcing to lower-cost countries may become the norm.
3. Risks for Players and Developers
- Players investing time in a game may lose content updates if developers are laid off.
- Developers face uncertain career paths, even with high-profile projects.
What’s Next for Marvel Rivals?
Despite the layoffs, Marvel Rivals is still fully operational and continues to receive updates.
What Players Can Expect:
✅ New character releases (such as the Thing and Human Torch)
✅ Ongoing server maintenance
✅ Potential new events and skins
However, with the entire U.S. team gone, it remains unclear who will lead future updates.
Final Thoughts: A Puzzling Decision
NetEase’s choice to lay off a successful development team raises concerns about corporate decision-making in gaming. It also sparks a bigger conversation about the industry’s treatment of developers and the stability of gaming careers.
While Marvel Rivals remains active, the layoffs leave a big question mark over its future. Will NetEase continue supporting it long-term, or will this be the start of a slow decline?
Only time will tell.
