In a shocking and perplexing move, NetEase has laid off Marvel Rivals game director Thaddeus Sasser and his entire Seattle-based development team, despite the game’s overwhelming success. The layoffs reportedly affected six developers who played key roles in game and level design. While no official reason has been given, speculation is growing that NetEase may be pulling all investments from North America, a move that could have widespread implications for its operations in the region.
The layoffs were first confirmed by Sasser himself in a LinkedIn post, where he revealed that his entire team had been dismissed without explanation. Fellow level designer Jack Burrows echoed the news, stating, “Couldn’t dodge that big boot, I guess, no matter how big the success of the gig.” Their sudden removal has sparked industry-wide confusion, especially considering that Marvel Rivals has been one of the most successful live-service launches in recent memory.
Marvel Rivals has been a major hit for NetEase, with an extremely strong player retention rate and what is presumed to be high revenue generation. Unlike many other live-service games that struggle to maintain an active player base post-launch, Marvel Rivals has managed to keep fans engaged with its fast-paced hero shooter mechanics and a roster of popular Marvel characters. The game quickly became a staple in online multiplayer circles, further proving its viability as a long-term success.
Given this level of achievement, it seems illogical that NetEase would dissolve a crucial part of the development team. While game companies often restructure or shift focus, it is rare to see a team behind such a profitable project being let go so suddenly. This has led to widespread speculation about the real motives behind NetEase’s decision.
Bungie cinematic director John Ebenger added fuel to the speculation by stating on Bluesky that he has heard rumors of NetEase withdrawing all its investments from North America. If true, this would explain why the Seattle-based team was targeted, rather than a broader restructuring across all Marvel Rivals staff. However, without an official statement from NetEase, these reports remain unconfirmed.
If NetEase is indeed pulling out of North America, it could signal a shift in the company’s global strategy. NetEase has long been one of the dominant gaming forces in China, but its presence in the Western market has been growing in recent years with partnerships and ambitious projects aimed at a broader audience. A sudden retreat from North America would be a surprising development, and one that could impact future projects and collaborations.
Unfortunately, layoffs have become an all-too-common occurrence in the gaming industry. The year 2024 saw record-breaking job losses, with approximately one in ten game developers laid off. Even successful studios haven’t been spared, with beloved companies like Tango Gameworks being shut down despite producing critically acclaimed games like Hi-Fi Rush.
The assumption used to be that as long as a team worked on a profitable, highly played game, they would be safe from corporate downsizing. However, the Marvel Rivals layoffs prove that even success doesn’t guarantee job security. If a game as big as Marvel Rivals can’t protect its developers, it raises the question: who is safe?
As the gaming industry continues to face mass layoffs, restructuring, and shifting priorities, the fate of Marvel Rivals remains uncertain. While the game itself is still thriving, the removal of key designers raises concerns about its long-term vision. The people who made Marvel Rivals a success are now searching for new opportunities, while NetEase has yet to explain why they were let go in the first place.
Without further clarification from NetEase, the gaming community is left speculating about what this means for the company’s future in North America—and for the future of Marvel Rivals itself.
Currently, the company has not disclosed if further layoffs will follow, but for those affected, this unexpected decision has undoubtedly turned a dream project into a nightmare. The uncertainty of job security in the gaming industry continues to grow, and as companies shift focus, even those working on multi-million dollar successes aren’t immune to corporate restructuring. It’s an unfortunate reminder that passion and performance don’t always guarantee stability in an industry driven by unpredictable business decisions.
