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In the ever-evolving world of game development, even big names aren’t immune to turbulence — and lately, all eyes are on NetEase. Once celebrated for expanding into Western markets with bold investments in new studios, the Chinese gaming giant now finds itself under scrutiny as another partner, Bad Brain Game Studios, shuts its doors just two years after its creation.

Founded by Sean Crooks, a former Ubisoft developer best known for his work on Watch Dogs, Bad Brain Game Studios was one of several teams funded by NetEase to bring fresh creative visions to life. Their debut project, The Midnight Riders, promised a nostalgic mix of Stranger Things-style mystery and 1980s adventure — what Crooks once described as “Steven Spielberg meets Stephen King in an open world coming-of-age story.”

Sadly, that vision is now in limbo. In a recent LinkedIn post, Crooks confirmed that Bad Brain will close on November 17, the same day several other NetEase-backed studios are expected to shut down. Despite the closure, he remains hopeful:

“The game and its underlying IP are still available for acquisition or partnership,” he wrote. “We believe strongly in what was created, and would love to see this world find its way to players.”

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A Pattern of Closures

Bad Brain’s fate is far from isolated. In just the past year, multiple NetEase-supported studios have folded — including Worlds Untold, led by a Mass Effect writer; Jar of Sparks, founded by former Halo Infinite developers; and Fantastic Pixel Castle, helmed by industry veteran Greg Street, who’s still searching for last-minute funding to survive beyond November 17.

Even T-Minus Zero Entertainment, which faced an early shutdown, managed a small revival after its leadership team decided to self-fund and retain the studio’s name. Others, like Ouka Studios, managed to release their games (Visions of Mana) before being closed anyway.

What’s Going On at NetEase?

The timing and frequency of these closures suggest a significant shift in NetEase’s global strategy. While the company initially aimed to challenge Western giants like Activision Blizzard and Sony by empowering independent studios, recent reports indicate a pullback in funding and marketing support.

One particularly worrying sign: Toshihiro Nagoshi, the famed creator of Yakuza, has reportedly been given only enough resources to finish his current project — and NetEase allegedly won’t finance its marketing campaign.

Meanwhile, Jackalyptic Games, the studio behind an ambitious Warhammer MMO, is rumored to be looking for a new publisher as well, though no official statement has been made.

The Broader Implications

For developers, these closures are more than financial setbacks — they’re creative heartbreaks. Many of these teams were formed around the promise of freedom and stability, allowing industry veterans to experiment outside traditional AAA constraints. Instead, they’re now left seeking new homes for projects that may never see the light of day.

For players, it’s a sobering reminder that even promising titles can vanish before release. In an industry driven by risk and return, creative ambition often collides with corporate pragmatism — and lately, the latter seems to be winning.

Still, as Crooks and others have shown, not all hope is lost. Games like The Midnight Riders could yet find new life under different publishers or through independent means.

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In the end, NetEase recent pattern raises a pressing question for the industry:

Can massive publishers truly nurture creative freedom, or are these partnerships doomed to be short-lived experiments in a volatile market?

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