I’m ashamed to say that I’ve become pretty numb to the world of videogame layoffs now – it doesn’t mean that I don’t care and feel deep sympathy for every dev that loses their job, it just fails to surprise me anymore. However, when I saw that NetEase has laid off developers working on Marvel Rivals – the scorching hot hero shooter that is one of the most popular live service titles around right now despite being less than three months old – my jaw hit the floor. While NetEase is yet to confirm this news, LinkedIn posts from two developers – including Marvel Rivals’ game director – suggest that those at its Seattle studio are being let go.
Marvel Rivals has been one of the most successful new multiplayer games of recent times. On Steam alone, its daily concurrent player count will peak at around 300,000 people – a number that so many live service titles would kill for. It boasts a frequently expanding roster of over 30 beloved Marvel characters. It’s so far been absolutely packed with content and purchasable cosmetics. It’s even walked back controversial decisions within hours of announcing them to keep players on side. A resounding success, then.
However, posts on LinkedIn have begun to emerge from developers based at NetEase’s Seattle studio, claiming that layoffs have hit their team. Remarkably, this seems to include Thaddeus Sasser, Marvel Rivals’ game director – while clarification is needed (PCGamesN has contacted NetEase for comment) Sasser implies that the entire studio may have been let go.
“This is such a weird industry… My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games…and were just laid off!” he writes. This suggests that Sasser is included in the layoffs, but he has declined to comment to other media outlets about whether he has lost his position too.
In the same LinkedIn post, he endorses level designer Garry McGee who also appears to have been impacted by the layoffs. In a separate post, fellow level designer Jack Burrows confirms he has been let go by NetEase.
This seems like a pretty incomprehensible move, given Marvel Rivals’ initial success. Maybe Marvel Rivals isn’t generating as much money from battle passes and cosmetics as experts have predicted? In reality, it’s likely just a savage cost cutting exercise – salaries and costs in North America are incredibly high compared to other regions, and NetEase clearly thinks it can continue to support Marvel Rivals with fewer resources. Either that, or it will spin up similar roles to those lost in Seattle in more affordable locations.
These layoffs come just a few days before the second half of Marvel Rivals Season 1 kicks off on Friday, February 21. A big update will add two new characters, The Thing and Human Torch.
Recently, another Seattle-based studio that was backed by NetEase, Jar of Sparks, also confirmed that it was “halting” development on its debut game due to financial constraints. The studio was formed by former Halo veteran Jerry Hook.