NetEase’s Bad Brain Game Studios Shutting Down: What Led to the Closure

Bad news hit the gaming industry as NetEase’s subsidiary, Bad Brain Game Studios, announced its closure on November 17, 2025. The Toronto-based studio, founded in 2023 by former Ubisoft and Watch Dogs: Legion developers, cited the inability to find a new publisher as the primary reason for shutting down.

This closure marks another hit for NetEase, which has been scaling down its network of internal studios despite previous assurances of support for overseas developers. The announcement comes just two years after the studio’s inception, raising questions about the challenges faced by game developers in the current market.

Despite the closure, Bad Brain Game Studios’ latest title, Midnight Riders, remains open for acquisition. The Canadian developers have been unable to secure a new publisher for the game, leading to the decision to cease operations.

NetEase Games’ decision to close the studio highlights the competitive nature of the gaming industry and the challenges faced by developers in securing funding and support for their projects. The closure serves as a reminder of the risks involved in the industry, where even established studios can struggle to find success.