The Fantastic Pixel Castle studio is on the brink of closure as NetEase has withdrawn support
In the fall of 2023, NetEase launched the studio Fantastic Pixel Castle, appointing veteran Riot Games producer Greg Street to lead it. After two years, the company decided to terminate this relationship.
Concept art of Ghost
Greg Street announced that Fantastic Pixel Castle would soon depart from NetEase's lineup. He wrote on LinkedIn that the studio is currently seeking an investor or publisher for an MMORPG code-named Ghost — its debut game. As the senior manager added, NetEase has agreed to support Fantastic Pixel Castle during the search for a new partner, but eventually, their paths will diverge.
Street admitted he's not confident in a successful search outcome. According to him, in the current market conditions, it's very difficult to convince anyone to invest in a large-scale game. But if an investor/publisher is not found soon, Fantastic Pixel Castle will have to shut down.
Fantastic Pixel Castle is willing to make concessions. For instance, Street indicated that it's ready to significantly scale down Ghost or, if there's no other choice, abandon its game in favor of working on another project.
Recall, Bloomberg sources reported about issues at Fantastic Pixel Castle as early as the end of August. They claimed that NetEase considered Ghost's budget (over $100 million) too large for its current business strategy and decided to reduce the studio's funding.