Marvel Rivals owner Netease says heck no we didn't shut down our AI department or warn devs off it: "The situation described did not occur"

Marvel Rivals owner Netease has responded to a strange situation in which Japanese developer Goichi Suda (Suda51) suggested the company had shuttered its generative AI research department and instructed its development teams to avoid the technology. Eager to set the record straight, Netease says no, it is still very much investing in AI tech.

As Eurogamer reports, Suda said, "They originally had a section researching and developing AI-related stuff, but at one point they decided not to do that any more. They folded that section and told their studios to not use AI in games, to not use it at all."

It seems there was a misunderstanding. Netease says it remains pro-AI in games. A company spokesperson told Eurogamer: "The assertion that NetEase Games has closed an AI department or that we've mandated teams or studios not to use AI is not true." A separate statement to Insider Gaming simply reads: "The situation described did not occur."

Moreover, Netease is set to host at least two panels explaining applications of AI in game development at this year's Game Developers Conference. A search shows that the GDC 2026 schedule has two AI-related talks from Netease employees listed – including one game AI designer, one technical manager, and one technical art manager.

The first talk, set for mid-day on March 12, reads like a more conventional application of AI. "How AI Turned MMO Players into TikTok Creators," it's titled, promising an explanation of how AI video tools can be used to "extract motion and camera, swap avatars, and refilm the scene" from live-action clips or in-game footage to repackage it for short-form video content.

The second talk, coming later on March 12, sounds more like the type of thing you'd expect from a company that's apparently worried about the optics of not investing in AI and inserting it into games. "We'll explore principles for successful AI integration: establishing effective human-AI collaboration workflows, building value-oriented technical services, and creating cross-domain integration strategies," the summary reads, echoing much of the chatter around purported gen AI efficiency.

"Through concrete case studies, we'll demonstrate how AI asset optimization toolchains and intelligent workflow transformations delivered over $6 million in cost savings and 50% efficiency improvements."

There is clear emphasis on "AI implementation opportunities in game development" and "specific techniques for leveraging AI in art production."

Meanwhile, many other publishers and developers are keen to avoid any association with generative AI and the many issues – and backlashes – it brings. Even Rockstar owner Take-Two, whose CEO, Strauss Zelnick, has championed AI as a "great thing for every industry," has been quick to say "generative AI has zero part in what Rockstar Games is building" with GTA 6.

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