Tue Feb 25 02:50:00 UTC 2025: ## NetEase’s Global Retreat: Chinese Gaming Giant Cuts Jobs, Shuts Studios, and Scales Back International Ambitions

**SHANGHAI, CHINA –** NetEase, a Chinese gaming giant, is dramatically scaling back its international operations, leading to widespread job cuts and studio closures across North America, Japan, and potentially other regions. The move comes despite recent financial success, including a $2.9 billion revenue quarter boosted by the popular Marvel Rivals game.

According to multiple reports from Bloomberg and Game File, NetEase founder and CEO William Ding is implementing a significant restructuring. This includes hundreds of job losses, the closure of several studios, and reduced funding for projects at Japanese studios, impacting games from former Ryu Ga Gotoku Studio head Toshihiro Nagoshi. The reports suggest a shift towards focusing resources within China, potentially resulting in a lack of major title releases from Chinese studios as early as 2026.

The cuts extend to several high-profile acquisitions and partnerships. This includes the downsizing of the Marvel Rivals team in Seattle, despite the game’s 40 million players. Reports, which NetEase denies, indicate Ding considered abandoning the Marvel license altogether due to licensing fees. Other impacted studios include Worlds Untold (Vancouver), Jar of Sparks (Seattle), Ouka Studio (Tokyo), T-Minus Zero Entertainment, and Fantastic Pixel Castle. While NetEase acquired Grasshopper Manufacture and Quantic Dream in recent years, the future of their projects remains uncertain under the new strategy.

The restructuring reflects a broader trend of uncertainty within the video game industry, characterized by recent widespread cutbacks. While NetEase’s move is drastic, analysts point to it as a clear sign of shifting priorities for the company, focusing resources back towards its domestic market and raising questions about the future of the company’s international presence. For fans of games in development at affected studios, the news is particularly concerning, with potential delays and cancellations looming.

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