NetEase Games recently laid off US-based developers working on the successful mobile game, Marvel Rivals, sparking controversy within the industry. This strategic shift by NetEase affects its North American studios.
On February 19, 2025, Thaddeus Sasser, the director of Marvel Rivals, announced on LinkedIn that he and other California-based developers had been laid off. This news came as a surprise, given the game's recent success. Sasser highlighted the team's significant contribution to launching a new, highly successful franchise. Despite the setback, he proactively began seeking new opportunities for his former team members, showcasing their talents and skills on LinkedIn. He specifically praised Garry McGee, the game's technical designer, highlighting his problem-solving abilities and technical expertise.
Marvel Rivals was developed collaboratively by teams in China and Seattle. While Sasser's team played a crucial role in game and level design, the layoffs underscore a broader trend impacting the gaming industry. NetEase has remained silent on the reasons for the layoffs, but industry speculation points to a potential withdrawal from the North American market. This is supported by previous events, including the termination of funding for Worlds Untold in November 2024 and the severed partnership with Jar of Sparks in January 2025.
Despite the layoffs, Marvel Rivals continues to receive updates. The second half of Season 1, revealed on the game's YouTube channel on February 19, 2025, introduces new heroes (The Thing and Human Torch), a new map (Central Park featuring Dracula's castle), balance adjustments, and tournaments. The update, spearheaded by Guangguang (creative director) and Zhiyong (lead combat designer), includes significant balance changes. Characters with rapid ultimate recharge will see increased energy costs, while the survivability of certain Vanguard characters will be reduced. Overpowered heroes like Storm and Moon Knight are also receiving nerfs. A planned rank reset was later removed in response to fan feedback.
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