Despite Major Success, Marvel Rivals Team Faces Layoffs

In an unfortunate turn of events, the gaming industry is seeing yet another wave of layoffs. This time, the blow has landed at NetEase Games, the team behind Marvel Rivals. The news broke as employees from the Seattle-based North American team turned to LinkedIn, announcing they had been let go.

“Working with my American colleagues was a fantastic experience, even if it ended on a sad note,” former level designer Jack Burrows shared with a hint of melancholy on Tuesday. “Despite our achievements, it seems we just couldn’t sidestep the axe this time.”

Marvel Rivals has had its development and upkeep split between teams in the U.S. and China. While today’s layoff numbers remain ambiguous, it’s expected the Chinese side will now oversee the game’s ongoing support.

Initially launching as a free-to-play offering in December 2024, Marvel Rivals swiftly climbed to become one of the top five games played across Xbox, PlayStation, and Steam in the U.S., as reported by Circana’s executive director, Mat Piscatella. Currently, the game is in the thick of its inaugural season, thrilling fans with the addition of the Fantastic Four as new playable characters. The thriving success of Marvel Rivals has presented formidable opposition to Blizzard Entertainment’s Overwatch 2, pushing Blizzard to announce several forthcoming adjustments in an effort to regain its footing.

These developments are part of a broader strategy, with NetEase Games retracting support from several North American game development teams it previously funded. This includes teams like Humanoid Origin and Worlds Untold, which were founded by BioWare veterans Casey Hudson and Mac Walters, respectively.

### Reaction: What Are We Doing?

Not long ago, I praised Marvel Rivals for its impressive breakthrough in today’s gaming market. It’s gratifying to see that despite the industry’s turbulent landscape, a new live service game could still make such a significant impact. This success is even more remarkable considering the setbacks several other titles experienced in recent years.

It’s puzzling—not to mention a bit absurd—to think this game isn’t meeting some elusive benchmarks for success. I’m willing to bet the revenue generated from character skins like Invisible Woman and Psylocke easily outshined many games released last year.

Watching this situation unfold is both disheartening and baffling, adding layers to an already intricate industry puzzle. My thoughts, as always, are with those who have been affected by these changes.