Every Move NetEase Makes Feels More Desperate Than the Last

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It seems that NetEase‘s latest actions are utterly puzzling, as if they’re making one blunder after another without a clear direction.

It seems clear that NetEase is struggling to keep something they’re losing, yet their actions appear less than strategic. Frankly, it gives off an air of panic, which can be risky for such a large corporation.

Among significant concerns, the manner in which NetEase manages its employees has raised some eyebrows. The sudden job cuts at the Seattle Marvel Rivals team left many perplexed and struggling to find a reasonable explanation, particularly following such an impressive debut. What makes this situation even more concerning is that these layoffs align with a broader trend of the company scaling back on international projects.

According to GamesBeat, there are signs that NetEase may be reducing its investments in international game studios, such as those based in the U.S., due to rising costs and political difficulties. However, NetEase has denied the possibility of abandoning their overseas expansion plans entirely. Instead, they have acknowledged a decision to downsize certain studios.

In its initial month, Marvel Rivals generated an impressive $136 million, clearly a significant success. However, rather than basking in this achievement and further developing the game, NetEase opted to reduce the team who had achieved such success. The claim of “improving development efficiency” appears more like an evasion of responsibility.

Not only did Marvel Rivals close down, but Ouka Studios, a subsidiary of NetEase, unexpectedly ceased operations on the same day Visions of Mana was released in late 2024. Worlds Untold also met an unfortunate end. It appears that one by one, NetEase’s international projects and teams are either being terminated or significantly reduced. Upon closer examination, it’s difficult not to notice the recurring trend in these decisions.

The message on the wall is straightforward: NetEase is scaling back from its overseas projects. It seems they are redirecting all resources towards China, where expenses are lower and the local market continues to thrive. By doing this, NetEase might believe it can achieve similar success while eliminating the additional costs associated with managing foreign studios. From their perspective, it’s a beneficial move: reduce expenses, keep production in-house, and continue releasing games that garner global sales.

It’s understandable that managing international studios comes at a high cost, but NetEase is making a serious mistake by cutting back too drastically. A company of its size should be more forward-thinking than this. The truth is, large gaming companies have found they can trim staff while continuing to produce games as usual, and this unfortunate trend seems to be becoming the norm.

Discussion persists on whether the actions taken by NetEase represent a thoughtful reorganization scheme or if they’re merely reacting in a flustered manner following unsuccessful international expansions. If these steps are part of some larger strategic restructuring, it certainly isn’t clear at this point.

Some people believe that the company had to reduce its operations due to stringent government rules and unfavorable economic conditions, while others perceive this move as a cost-cutting measure following their recognition of an overestimation in penetrating the Western market. Regardless, it’s not a flattering image.

If it was well thought out, they wouldn’t be axing successful projects and talented teams so quickly. These decisions feel desperate. It feels like NetEase is scrambling to fix past mistakes and is willing to burn bridges along the way.

Should firms such as NetEase persistently favor profits over employees, the gaming sector may progress towards a time when job stability becomes rare, innovation is suppressed, and only high-ranking executives reap significant rewards.

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2025-02-20 09:42