“Marvels Rivals,” a powerhouse title for NetEase since its debut last year, faced potential cancellation before its release. Reports indicate that the CEO of the company had reservations about compensating Disney for the rights to its characters.

As detailed in a recent Bloomberg article, CEO William Ding’s recent strategic shifts have led to significant job cuts, studio closures, and a reduction in international investments, all in response to slow growth and declining revenue over the past two and a half years.

The game, having reportedly generated over $200 million since its launch in December, was initially considered for cancellation due to Ding’s objection to Disney licensing fees for its beloved Marvel characters. According to Bloomberg, there were suggestions for artists to develop original characters for the game, but this idea was ultimately scrapped.

This decision, portrayed as representative of Ding’s rapid strategic shifts, reportedly cost NetEase millions. However, a spokesperson refuted this claim, emphasizing the company’s longstanding partnership with Marvel since 2017.

Over the past year, Ding’s evolving strategy has affected numerous studios in the West. Last November, BioWare veteran Mac Walters announced a suspension of operations at his NetEase-supported studio, Worlds Untold. Additionally, Jar of Sparks, founded by Jerry Hook, the former head of design for Halo Infinite, also ceased operations in January, resulting in layoffs.

This week, despite the success of “Marvel Rivals,” NetEase initiated job cuts within its US creative team for the game. The company stated that this move was aimed at “optimizing development efficiency.” Furthermore, they clarified that they remain committed to global expansion, even as reports surfaced about downsizing their overseas game studios due to escalating operational costs.