Multiple Game Studios Forced to Close Due to Funding Issues

Recent reports in the video game industry have highlighted a troubling trend of game studios being forced to shut down due to funding issues, particularly related to NetEase pulling their financial support. This has led to a domino effect of closures, leaving many developers without jobs and projects unfinished.

Canadian Developers Announce Closure

One of the latest casualties of this trend is a Canadian game studio that announced its closure and the cessation of operations on November 17th, 2025. The studio cited the inability to secure a new publisher for their latest title, Midnight Riders, as the primary reason for their closure.

Former WoW Designer’s Studio Also Closes

Another studio, founded by former World of Warcraft designers, has also announced its closure amid funding issues. Despite the talent and experience of the team, they were unable to find a new publisher, leading to the decision to shut down.

NetEase Implicated in Series of Closures

NetEase, a major player in the gaming industry, has been implicated in several studio closures after pulling their funding. This has raised concerns about the long-term stability and support for game developers who rely on external funding to bring their projects to life.

Impact on Developers and Industry

The closures of these game studios not only impact the developers and employees directly involved but also send ripples through the industry as a whole. It raises questions about the sustainability of relying on external funding sources and the need for more stable financial models in the gaming world.

Looking Ahead

As more game studios face closure due to funding issues, it is essential for developers to explore alternative funding options and for industry stakeholders to consider the long-term implications of relying on external investors. The gaming community must come together to support those affected by these closures and work towards a more sustainable future for game development.