Chinese gaming giant NetEase has issued a statement addressing the recent layoffs of US-based developers working on Marvel Rivals, citing organizational streamlining as the reason behind the move. The layoffs, which were reported on LinkedIn earlier this week, came as a surprise to the gaming community given the game's evident success. NetEase's PR representative, Alex Armour, explained that the decision was made to "adjust Marvel Rivals' development team structure for organizational reasons and to optimize development efficiency for the game."

However, a report by VentureBeat suggests that the real reason behind the layoffs may be more complex. According to sources, NetEase executives have lost confidence in overseas development teams, citing the success of Black Myth: Wukong as proof that blockbuster hits can be made cheaper and closer to home. This has led to speculation that NetEase may be retreating from overseas development, a claim the company has vehemently denied.

In a statement to VentureBeat, NetEase assured that its studios in North America, UK, Spain, and Japan will continue to refine and develop their ongoing game projects. The company also emphasized its commitment to Marvel Rivals, stating that it is "investing more, not less, into the evolution and growth of this game." Despite the layoffs, development on Rivals will continue with a core group of developers based in China.

The layoffs come just two months after Marvel Rivals launched to rapid critical and financial success, with reports estimating that it raised over $130 million in revenue in its first month. The game's success has been a significant boost to NetEase, and the company's decision to continue investing in its development is a clear indication of its confidence in the game's potential.

The incident highlights the challenges faced by gaming companies in managing global development teams. While outsourcing development to overseas teams can provide cost savings and access to diverse talent, it also poses significant logistical and cultural challenges. NetEase's decision to streamline its development team structure may be a sign of the company's efforts to adapt to these challenges and optimize its development process.

As the gaming industry continues to evolve, companies like NetEase will need to navigate the complexities of global development teams while also meeting the demands of an increasingly competitive market. The fate of Marvel Rivals and NetEase's overseas development teams will be closely watched in the coming months, providing valuable insights into the future of game development.