Marvel Rivals Team Laid Off, NetEase Assures Game's Future

NetEase, the developer behind the hit game Marvel Rivals, has announced layoffs within its Seattle-based design team, citing "organizational reasons." The news broke overnight when Thaddeus Sasser, the game director of Marvel Rivals, shared on LinkedIn that he and his team were let go despite their significant contributions to the game's success.

Sasser expressed his frustration and confusion over the decision, stating, "This is such a weird industry. My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games... and were just laid off! Oh well! Times are tough all over - Let's find these incredible people new jobs, because we all need to eat, right? :D" His message resonated with the video game development community, sparking reactions of shock and anger, especially given Marvel Rivals' impressive performance since its launch in December. The free-to-play hero shooter has amassed over 20 million downloads and achieved substantial concurrent player numbers on Steam.

Sasser's LinkedIn profile highlights his team's role in game and level design for Marvel Rivals, where they provided "guidance, strategy, and design direction over the last couple of years." In response to inquiries, NetEase confirmed the layoffs to IGN but did not disclose the number of affected employees. The company stated, "We recently made the difficult decision to adjust Marvel Rivals’ development team structure for organizational reasons and to optimize development efficiency for the game. This resulted in a reduction of a design team based in Seattle that is part of a larger global design function in support of Marvel Rivals. We appreciate the hard work and dedication of those affected and will be treating them confidentially and respectfully with recognition for their individual contributions."

Despite the layoffs, NetEase emphasized that the ongoing support for Marvel Rivals will not be affected. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains based in Guangzhou, China. NetEase reassured fans, saying, "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience. We are investing more, not less, into the evolution and growth of this game. We’re excited to deliver new super hero characters, maps, features, and content to ensure an engaging live service experience for our worldwide player base."

This recent round of layoffs at NetEase is part of a broader trend of the company scaling back its overseas investments. It has closed studios in the U.S. and Japan, including Ouka Studios, the developer of Visions of Mana. In November, Worlds Untold, led by Mass Effect alum Mac Walters, announced a pause in operations following a split with NetEase. Additionally, in January, NetEase cut ties with Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022.