In a surprising turn of events within the gaming industry, the successful launch of the free-to-play hero shooter Marvel Rivals by NetEase was overshadowed by recent layoffs affecting the US development team. Despite achieving over 20 million players and maintaining a daily concurrent player base of 250,000 on Steam, job cuts have been made, leaving many in shock.
Thaddeus Sasser, the game director of Marvel Rivals, took to LinkedIn to announce the unfortunate news of the layoffs at NetEase’s Texas-based studio. Expressing his disbelief, he stated, “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!”
While the exact number of individuals impacted by NetEase’s decision remains undisclosed, level designers Jack Burrows and Garry McGee both confirmed their job status changes through separate social media posts. Burrows shared, “Welp, just got laid off from my job working on Marvel Rivals with NetEase. Was an enormous pleasure to work with my American coworkers who join me in this sad culling. Just couldn’t dodge that big boot I guess, no matter how big the success of the gig.” McGee echoed similar sentiments, remarking, “My team recently helped develop and launch Marvel Rivals, which turned out to be a bigger hit than any of us expected! Unfortunately my team was also laid off. Strange times all across the industry indeed.”
The launch of Marvel Rivals last December was met with enthusiasm and the game quickly garnered a dedicated player base. However, the recent layoffs at NetEase’s US studio are not isolated incidents within the gaming industry. Several western studios associated with NetEase have also faced similar challenges in recent months. For instance, projects at Worlds Untold and Jar of Sparks, both backed by NetEase, experienced setbacks resulting in pauses and layoffs.
Moreover, Swedish developer Liquid Swords, founded with NetEase funding, recently announced an unspecified number of layoffs, adding to the industry-wide trend. With over 25,000 employees having lost their jobs in the gaming industry since the start of 2023, the latest round of layoffs continues a concerning pattern. In the first two months of 2025 alone, nearly 900 more individuals have been affected across various companies, including Unity, HiRez Studios, Sumo Digital, Ubisoft, Splash Damage, and Midnight Society.
The ongoing challenges faced by employees in the gaming industry highlight the volatile nature of the business, where success and setbacks often coexist. As the community rallies around those impacted by the recent layoffs, it serves as a poignant reminder of the human stories behind the games we love.
