February 20th 2025.
According to sources close to the matter, the recent layoffs at NetEase's US development team for Marvel Rivals were a surprise to many, especially considering the game's success as an online shooter. This move comes after NetEase has been showing signs of pulling back from their overseas investments, leading some to question their commitment to global expansion. However, the company has stated that they are still dedicated to their plans for international growth.
The layoffs at Marvel Rivals were not an isolated incident, as NetEase has also made cuts at other Western studios they own and even shut down the developer behind Visions Of Mana on the same day the game was launched. Reports have surfaced claiming that NetEase is considering abandoning some or all of their international investments, but the company has denied these rumors.
According to a report by GamesBeat, industry experts believe that NetEase is looking to rely less on overseas personnel for game development. This could result in further layoffs and studio closures. The main reasons behind this decision are said to be rising development costs, particularly in the US, and the rapid growth of China's own games industry. With the recent success of Chinese-made games like Genshin Impact and Black Myth: Wukong, it has become clear that China is capable of producing popular AAA console games.
In addition to their internal development studio, NetEase Games, the company owns 20 other studios around the world, including Grasshopper Manufacture, the studio behind No More Heroes, and Quantic Dream, known for games like Detroit: Become Human and the upcoming Star Wars Eclipse. With such a diverse portfolio, it's no wonder that NetEase is pushing for global expansion.
However, with the current trade tensions between the US and China, some speculate that the tariffs imposed by former US President Donald Trump may have played a role in NetEase's decision. These tariffs not only affect console and game prices, but also impact Chinese game studios, which are often relied upon for support work by the wider industry. The Entertainment Software Association, which represents major game publishers, has expressed concern over the potential harm these tariffs could cause.
In response to these rumors and speculations, NetEase has released a statement addressing their future plans. They state that their "two-pronged" approach, proposed in 2022, is still moving forward and yielding positive results. The company also stresses that they have not wavered in their global expansion plans, citing successful projects like Marvel Rivals and Once Human.
While NetEase does not explicitly deny the possibility of closing down their Western studios, they do mention scaling down two of them by the end of 2024. They assure that this is only a small portion of their overseas studio portfolio and that their studios in North America, UK, Spain, and Japan are still actively working on ongoing game projects.
NetEase also denies that the tariffs have influenced their decision, stating that their choices have been based solely on business evaluations. However, they do acknowledge that they are keeping an eye on international trade developments.
As for the future of NetEase's other studios, like Grasshopper Manufacture, there is no confirmation of any potential layoffs. For now, the company remains focused on their global expansion plans and producing high-quality games loved by players worldwide. To stay updated on the latest news and developments, readers can follow NetEase on social media and sign up for their newsletter. They can also submit any inquiries or comments through email or the Submit Stuff page on their website.
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