NetEase has closed its subsidiary, Bad Brain Game Studios

Developer Bad Brain Game Studios, located in Canada, has disclosed that it will cease operations.

A division of Netease, the company stated it couldn't secure a partner for its existing project, codenamed Midnight Riders, with operations set to conclude on November 17, 2025.

Studio Head Sean Crooks expressed his appreciation on LinkedIn for the support from NetEase Games, acknowledging the efforts made to explore every potential option. He praised the team’s commitment and creativity, highlighting their achievements as a testament to their remarkable abilities.

Crooks also mentioned that the rights to Midnight Riders, along with its intellectual property, are open for sale or partnership. Discussions with other studios or publishers interested in continuing the project are welcome.

Expressing further gratitude, Crooks acknowledged the support and confidence shown by others throughout their journey, stating that although this chapter ends earlier than expected, the essence of Bad Brain will persist through its talented team.

NetEase established Bad Brain Game Studios in 2023, incorporating talent from Ubisoft Toronto. This marked NetEase's second studio in Canada, following their earlier purchase of SkyBox Labs that same year.

This closure is the second instance of NetEase shutting down a subsidiary this week. Fantastic Pixel Castle, led by Gregg Street, is also slated to close on November 17. The studio's closing happens amid reports that NetEase planned to divest it unless a publisher or investor for its MMORPG project, Ghost, could be found.

Street noted the slim possibility of securing funding post-closure, depending on team retention. Earlier, on November 4, T-Minus Entertainment was acquired by veteran directors and founders after being shut down by NetEase in September.