In a surprising turn of events, NetEase recently announced the layoff of Marvel Rivals’ director Thaddeus Sasser and its entire Seattle-based design team, citing “organizational reasons” as the cause.

Despite the storm of upheaval, NetEase assures fans of Marvel Rivals that the game’s momentum will not be hampered. This announcement follows a period of immense success for Marvel Rivals—a free-to-play hero shooter that catapulted in popularity, boasting over 20 million downloads since its December debut and attaining substantial peak concurrent player counts on Steam. Nevertheless, the video game development community has voiced a mix of shock and ire over the layoffs.

Sasser, disclosing the news on LinkedIn, expressed disbelief at the abrupt dismissal of a team that had, by all accounts, delivered a spectacular new franchise to NetEase. His heartfelt post emphasized the need to secure new positions for his talented team, highlighting the harsh realities of the current industry climate.

NetEase, in a statement to IGN, confirmed the “difficult decision” to restructure Marvel Rivals’ development team to optimize efficiency. Although the layoffs affected the Seattle design group, the core development continues under the leadership of Lead Producer Weicong Wu and Game Creative Director Guangyun Chen in Guangzhou, China.

Despite the cutbacks, NetEase reaffirms its commitment to Marvel Rivals’ future, promising new superhero characters, maps, and engaging content to enhance the live service experience. NetEase has faced several strategic pullbacks, including previous overseas closures like the Visions of Mana developer Ouka Studios and the pausing of operations for Worlds Untold and Jar of Sparks.

This development is the latest in a series of shifts within the industry, leaving fans and stakeholders eagerly watching to see how NetEase will navigate these challenges while continuing to deliver the superhero-themed chaos that Marvel Rivals fans adore.

Embedded Image Caption: Marvel Rivals saw massive success with over 20 million downloads, but faces challenges with recent layoffs of its Seattle design team.

Wesley is the UK News Editor for IGN. Reach him at @wyp100 on Twitter or via email at wesley_yinpoole@ign.com.

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