Marvel Rivals Layoffs At US Team Influenced In Part By "Geopolitical Risks," Analyst Says

The recent announcement that NetEase was laying off some of its US-based Marvel Rivals developers, including one of the game's directors, prompted concern and questions given that the hero shooter is performing well in the market with 40 million players. Now, a clearer picture of what's going on and the context behind the shocking decision is coming into focus.

Niko Partners analyst Daniel Ahmad published a report in which he offered his take. Ahmad said there is "some truth" to how various Chinese game companies are downsizing their US operations due in part to "geopolitical risks" under the new Trump administration. However, there may be more to the story. Ahmad said the "full picture is more nuanced" and might also reflect NetEase performing a "recalibration of its global strategy."

In addition to the layoffs at the Marvel Rivals team at NetEase is Seattle--under a dozen people were reportedly affected--NetEase made a number of other significant drawbacks to its global games business. Ahmad pointed out how NetEase either closed or scaled down funding for Ouka Studio in Japan, Worlds Untold in Canada, and Jar of Sparks in the US. More recently, Just Cause creator Christopher Sundberg's new studio Liquid Swords announced cuts, as did Halo Infinite co-developer SkyBox Labs in Canada. Both teams were funded in part by NetEase.

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