NetEase, the developer behind the hit game Marvel Rivals, has announced layoffs affecting its Seattle-based design team, citing "organizational reasons." The news broke overnight when Thaddeus Sasser, the game director for 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 bewilderment at the situation, 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"
The announcement has sparked a wave of shock and anger within the video game development community, especially considering Marvel Rivals' stellar performance. Since its launch in December, the free-to-play hero shooter has amassed over 20 million downloads and achieved significant peak concurrent player numbers on Steam.
Sasser's LinkedIn profile highlights that his team was instrumental in game and level design, providing guidance, strategy, and design direction for Marvel Rivals over the past few years.
NetEase confirmed the layoffs in a statement to IGN but did not disclose the exact number of affected employees. "We recently made the difficult decision to adjust Marvel Rivals’ development team structure for organizational reasons and to optimize development efficiency for the game," the company stated. "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 in Guangzhou, China, remains fully committed to the game. "We want to reassure our fanbase that the core development team for Marvel Rivals...remains fully committed to delivering an exceptional experience," NetEase added. "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 is part of a broader trend at NetEase, which has been scaling back its overseas investments and closing studios in the U.S. and Japan. Notable closures include Ouka Studios, the developer behind Visions of Mana, and Worlds Untold, led by Mass Effect alum Mac Walters, which paused operations after parting ways with NetEase in November. Additionally, in January, NetEase cut ties with Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022.
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