NetEase Funding Leads to Closure of Two Game Studios

NetEase, a major player in the gaming industry, has once again made headlines for the closure of two game studios that it had previously funded. The latest casualties of NetEase’s funding decisions are Bad Brain Game Studios and Fantastic Pixel Castle, both of which are shutting down after just a few years of operation.

Bad Brain Game Studios, founded in 2023 and led by former Ubisoft and Watch Dogs developers, is one of the studios that is closing its doors. Despite the talent behind the studio, it was unable to secure a new publisher and ultimately had to cease operations.

Similarly, Fantastic Pixel Castle, a studio led by a former World of Warcraft designer, is also shutting down as its funding from NetEase comes to an end. The closure of these two studios marks the fifth and sixth Western studio closures by NetEase in recent years.

It is a reminder of the risks associated with relying on external funding in the gaming industry. While partnerships with major companies like NetEase can provide a significant boost to a studio’s resources, they also come with the risk of sudden closures if the funding dries up.

As the industry continues to evolve, it is crucial for game developers to carefully consider their funding sources and have contingency plans in place in case of unexpected changes. The closure of Bad Brain Game Studios and Fantastic Pixel Castle serves as a cautionary tale for aspiring developers in the competitive world of video games.