Marvel Rivals Was Nearly Cancelled Due to NetEase CEO's Reluctance to Pay Disney Licensing Fees

Keerthana S Febraury 22, 2025 | 05:00 PM Technology

"Marvel Rivals is a major success, but its future was once uncertain. According to a new Bloomberg report on developer NetEase and CEO William Ding, there were discussions about cancelling the game before its release. However, NetEase has denied these claims."

According to a source in the report, the issue stemmed from Ding's reluctance to pay Disney for the rights to use Marvel characters. At one point, he even instructed artists to create original designs as a cost-saving measure. However, this decision ultimately led to wasted time and resources, costing NetEase millions.

Figure 1. Marvel Rivals.

A NetEase representative denied the allegation, stating that the company has maintained a strong partnership with Marvel since 2017. However, it's easy to see why Ding might have considered cutting ties [1]. Marvel licenses are undoubtedly expensive, and with live-service games being a risky investment—especially after the failure of Marvel's Avengers—hesitation to commit significant funds is understandable. Figure 1shows Marvel Rivals.

Marvel Rivals has proven to be a huge success, recently surpassing 40 million players, making the idea of cancelling it or removing its licensed characters seem like a major misstep in hindsight. However, according to Bloomberg, this kind of indecision has been a pattern in Ding's leadership in recent years, with frequent changes of direction, withdrawal of support for projects, and even shutting down games in development.

This trend has been evident in North America, where, despite Marvel Rivals’ success, NetEase laid off developers at its Seattle studio and cut funding for the newly launched Worlds Untold and Jar of Sparks studios. According to Bloomberg, the impact is also being felt in China, with cuts so severe that NetEase’s studios there may not release any major games in 2026.

Ding reportedly wants NetEase to prioritize games with mass-market appeal and strong recurring revenue, such as the multiplayer mobile game Eggy Party. Sources told Bloomberg that projects without the potential to generate hundreds of millions of dollars annually are considered not worth pursuing [2]. However, a NetEase representative denied this, stating the company does not use "arbitrary blanket numbers" to determine a game's viability.

While some within NetEase have concerns about Ding's leadership, his approach isn't exactly unusual. Electronic Arts CEO Andrew Wilson recently suggested that Dragon Age: The Veil guard fell short of the company’s expectations because it lacked live-service elements. Wilson emphasized that for games to thrive in the future, they must "directly connect to the evolving demands of players who increasingly seek shared-world features and deeper engagement."

References
  1. https://www.pcgamer.com/games/third-person-shooter/marvel-rivals-was-reportedly-almost-cancelled-because-the-ceo-of-netease-didnt-want-to-pay-disney-for-the-licenses/
  2. https://economictimes.indiatimes.com/topic/netease-layoff

Cite this article:

Keerthana S (2025), Marvel Rivals Was Nearly Cancelled Due to NetEase CEO's Reluctance to Pay Disney Licensing Fees, Anatechmaz,pp 127.

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