Several NetEase studios, like Quantic Dream, Nagoshi Studio, and Grasshopper, face potential closure as the company looks to sell off its international operations.
NetEase, once known for its popular PC MMOs and mobile games, has been on an expansion spree, acquiring well-known studios from around the world. However, due to ongoing challenges in the gaming industry, it seems they are reassessing this growth.
Recently, NetEase ended its partnership with Worlds Untold, a studio it created with Mass Effect’s writer, Mac Walters, and with Jar of Sparks, founded by Xbox veteran Jerry Hook. These moves suggest a significant shift in strategy.
Just this week, the company laid off developers from Marvel Rivals, including its director, despite the game’s successful debut. Although a spokesperson denied that these layoffs indicate a broader cutback, insider sources reveal that NetEase is indeed reducing its international footprint and looking to offload some studios.
Reports indicate that NetEase may close several overseas teams unless they find new funding. This could impact renowned studios in Japan, such as those led by Toshihiro Nagoshi (Like A Dragon) and Hiroyuki Kobayashi (Resident Evil), along with Suda51’s Grasshopper Manufacture. They had also set up new studios like Studio Flare, headed by BlazBlue’s producer, and Pincool, led by Dragon Quest producers.
In the West, NetEase owns Quantic Dream, along with other studios featuring talent from franchises like Call of Duty and Control.
A spokesperson from NetEase stated that all studios are under constant review and that necessary changes will be made based on this evaluation. Meanwhile, a Bloomberg report confirms that Japanese studios have been told to finish ongoing projects without additional funding.
In 2023, during a visit to Nagoshi Studio and Grasshopper, developers expressed how NetEase’s support has allowed them creative freedom. Nagoshi highlighted the company’s ambition to succeed globally, particularly in the console market.
NetEase’s Studio Roster
- NetEase Montreal (Watch Dogs creator Jonathan Morin)
- Quantic Dream (Heavy Rain / Detroit)
- Grasshopper Manufacture (Suda51)
- Nagoshi Studio (Toshihiro Nagoshi)
- Pincool (Dragon Quest 8 & 9 producer Ryutaro Ichimura)
- Studio Flare (BlazBlue producer Toshimichi Mori)
- GPTRACK50 (Resident Evil 4 producer Hiroyuki Kobayashi)
- Jackalyptic Games (City of Heroes head Jack Emmert)
- T-Minus Zero Entertainment (Star Wars: The Old Republic producer Rich Vogel)
- Bad Brain Games (Watch Dogs: Legion producer Sean Crook)
- Anchor Point Studios (Control lead designer Paul Ehreth)
- SkyBox Labs (Support for Halo, Age of Empires & Minecraft)
- Spliced (GTA, Call of Duty veterans)
- Fantastic Pixel Castle (remote studio)
- Liquid Swords (Avalanche Studios co-founder)
- Rebel Wolves (Witcher veterans)
This week, NetEase reported a slight increase in revenues, bringing in RMB21.2 billion (about US$2.9 billion) for the last quarter. The company pointed out that it continues to invest in its global efforts while also adjusting its structure for better performance.
According to CEO Mr. Ding, NetEase is committed to supporting high-quality studios and creators. He emphasized that the company frequently evaluates its teams and products to ensure they align with its growth strategy.
