NetEase Games, the developer behind popular free-to-play and mobile titles like Marvel Rivals and the upcoming Destiny: Rising, has faced a significant setback. Two top executives were arrested this week amidst allegations of bribery and corruption.
This news, initially reported by Bloomberg Law and the Chinese outlet Leifeng, and later picked up by Game Developer, suggests a complex situation involving alleged bribery related to traffic purchasing. NetEase has launched an internal investigation, and while details remain scarce, reports indicate that two executives and seven other employees are currently in custody. NetEase has refrained from providing specifics due to the ongoing nature of the investigation.
The alleged bribery scheme reportedly revolves around a contract valued at approximately 2 billion yuan (around $278.5 million USD), involving 27 external suppliers. Yicai Global reports that these companies have subsequently been “blacklisted.”
The former esports chief, Xiang Lang, and former head of marketing, Jin Yuchen, are implicated in the scandal and are no longer employed by NetEase. Reports vary regarding the status of the other seven employees involved.
NetEase Games, headquartered in China, has a history of collaborations with Western companies, developing mobile and Chinese versions of popular titles. A notable partnership with Blizzard Entertainment resulted in Diablo Immortal and Chinese versions of games like Overwatch and World of Warcraft. This partnership, though temporarily suspended in 2023, was renewed in April 2024. NetEase also partnered with Marvel Games, leading to the development of the upcoming hero shooter, Marvel Rivals, slated for a December release.
Recently, NetEase began expanding its US presence with the establishment of T-Minus Zero Entertainment, a studio located in Austin, Texas, staffed by veterans from Bethesda and BioWare.
NetEase Executives Arrested
This incident casts a shadow over NetEase’s future endeavors, particularly the highly anticipated Marvel Rivals and Destiny: Rising. The outcome of the investigation will undoubtedly have significant implications for the company’s reputation and ongoing projects.
