NetEase Streamlines Operations as CEO Focuses on Lasting, Mainstream Successes
Image by courtesy of NetEase/Surprise Games.
Surprise Competitors creator NetEase Games has allegedly dismissed hundreds of developers and terminated numerous projects as of late, according to Bloomberg.
The report claimed that founder and CEO William Ding has concentrated on a “smaller portfolio” of games over the past year with the clear intention of surpassing rival Chinese firm Tencent. This means that NetEase’s gaming division has scaled back on international investments, which has already influenced the numerous subsidiaries it has launched or acquired in recent years.
Bloomberg further revealed that Ding is in search of popular mass-market games that encourage player spending, similar to the mobile title Eggy Occasion. Previously, he maintained a hands-off approach with NetEase Games, yet sources indicated that his level of involvement has been “dramatic” over the past year.
Current employees voiced concerns over Ding’s emphasis on profit-generating titles and disregard for any project that wouldn’t yield “hundreds of millions of dollars annually.” Some claimed he frequently changes his mind and has previously urged employees to work overtime. Additionally, he has reportedly appointed several recent finance graduates to directly report to him and manage or oversee projects within the gaming division.
According to Bloomberg, internal discussions occurred prior to the Surprise Competitors’ release regarding the cancellation of the game. Ding allegedly wanted to avoid paying licensing fees to Disney for the use of iconic characters such as Spider-Man and Wolverine, and supposedly instructed NetEase artists to utilize their own hero designs instead of Marvel’s creations. This attempted cancellation, which NetEase later denied to Bloomberg, was reported to have incurred “millions of dollars.”
Earlier this week, a U.S. support team for Competitors was dismissed. NetEase later disclosed $11.2 billion in revenue for the 2024-2025 financial year and acknowledged these layoffs would “enhance development efficiency.”
NetEase’s new emphasis impacts its latest studios significantly
The report also highlighted Ding’s withdrawal from games lacking that aforementioned profitability potential. Numerous teams based in China at NetEase had projects canceled or support services cut, potentially resulting in a year without significant Chinese releases.
Outside China, several Western developers faced repercussions: Jar of Sparks and Worlds Untold both halted operations after their funding was withdrawn, and NetEase laid off staff at Ouka Studios ahead of Visions of Mana’s release in 2024. Approximately 60 developers were reportedly affected by layoffs at Jar of Sparks and Worlds Untold.
NetEase contended to Bloomberg that its various changes did not constitute a “mass-scale layoff.” Studios located in Japan, like one led by Like a Dragon creator Toshihiro Nagaoshi, have reportedly been allowed time to “complete ongoing projects.” However, those titles will allegedly not receive any marketing or promotional support.
Bloomberg’s complete report on NetEase Games can be accessed here.
About the Author
Contributing Editor, GameDeveloper.com
A native of Kansas City, MO, Justin Carter has written for a wide array of websites including IGN, Polygon, and SyFy Wire. Besides Game Developer, his writings can also be found at io9 on Gizmodo. Don’t ask him about how much gum he chews, as the answer will be more than he’s willing to confess.