Chinese conglomerate NetEase has told Game Developer it will continue to support its myriad of overseas studios, but warned that structural changes will be a ‘necessary part’ of ongoing growth.
The Marvel Rivals developer has reiterated its stance after Bloomberg reported the company laid off hundreds of workers across its studio network and canceled multiple projects.
The publication claimed NetEase, under the leadership of CEO William Ding, had pulled back on international investments to refocus on a smaller portfolio of evergreen, mass market tiles like Eggy Party.
NetEase has previously established and invested into a huge number of international studios such as Jar of Sparks, Ouka Studios, Bullet Farm, Worlds Untold, Skybox Labs, Rebel Wolves, Anchor Point, and more.
Some of those entities, such as Skybox Labs and Ouka Studios, have reportedly laid off workers in recent months. Others like Rebel Wolves and Anchor Point recently issued statements explaining they remain unaffected by the purported business pivot.
As for NetEase itself, responding to Bloomberg’s reporting and the statements issued by its studios, a company spokesperson told Game Developer the firm remains committed to its global expansion plans but acknowledged “business evaluations” have been taking place.
Recent “business evaluations” at NetEase
NetEase chose to lay off multiple Marvel Rivals developers in the United States after one such evaluation. That decision was made after the multiplayer hero shooter topped 40 million players within months of launch.
“As far as overseas business efforts are concerned, NetEase has not wavered in its global expansion plans. Our ‘two-pronged’ approach (combining self-research and investments to explore global markets), is still actively progressing and yielding positive results,” explained a NetEase spokesperson.
“As part of our investment strategy, every decision was based purely on business evaluations and was not influenced by other factors. Our studios in North America, the UK, Spain, France, and Japan all continue to refine and develop their ongoing game projects.”
NetEase said it’s actively recruiting and nurturing talent across its global business, but added that “organizational structure changes aimed at improving performance are a necessary part of our ongoing growth.”
“Mr. Ding stated on the recent earnings call that NetEase is committed to supporting really high quality studios and master creators,” added the company.
“That is the company’s strategy, and there is no change in this plan. For any studio globally, it behooves us as a responsible commercial business to frequently evaluate the progress, viability and potential for success of our products and teams.”