NetEase shuts down subsidiary Bad Brain Game Studios

Canadian developer Bad Brain Game Studios has announced its closure.

The Netease subsidiary said it was unable to find a new partner for its current project, codenamed Midnight Riders, and its last day of operation will be November 17, 2025.

“We are deeply grateful to NetEase Games for their support and for providing us [a] runway to explore all possible possibilities,” said studio head Sean Crooks on LinkedIn.

“Our team has put everything into this journey – pushing creative and technical boundaries every day with passion, imagination and artistry. What we have achieved together is lasting proof of the extraordinary talent of this team.”

Crooks noted that Midnight Riders and its “core intellectual property” are available for acquisition or partnership, and that Bad Brain Game Studios and NetEase are “open to discussions with publishers or studios who see potential in its continued development.”

“I want to once again express my deepest gratitude to everyone who supported us along this path,” he added.

“Your support and belief in what we were building meant the world to us. Although this chapter ends sooner than we hoped, the spirit of what we created at Bad Brain will live on thanks to the incredible people who made it possible.”

NetEase formed Bad Brain Game Studios in 2023.which included developers from Ubisoft Toronto.

This was NetEase's second studio in Canada after acquisition of SkyBox Labs earlier that year.

Bad Brain Game Studios is the second NetEase subsidiary to shut down this week.

Fantastic Pixel Castle studio head Gregg Street confirmed that the developer will close on the same dayNovember 17.

It was initially reported that NetEase was planning to sell the studio if it failed to find a publisher or investor for its upcoming MMORPG, codenamed Ghost.

Street said there's still a chance [it] can provide financing after [the closure] date, it will depend on how much of the team remains.”

On Tuesday (November 4), the former NetEase studio T-Minus Entertainment was acquired by “a small group of experienced directors and founders.” after that closed its doors in September.

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