The studio was formed by NetEase in 2023 but has been kicked to the curb by its parent company.
NetEase has severed ties with internal studio Fantastic Pixel Castle less than two years after it was formed.
Fantastic Pixel Castle broke cover in November 2023 to develop a new triple-A MMO codenamed 'Ghost' under the NetEase banner. Yesterday, however, studio head Greg Street explained Fantastic Pixel Castle's time as an internal NetEase studio is coming to an end.
Notably, he stated the entire team could be made redundant if it doesn't find another publisher or investor soon.
"NetEase Games has been very gracious and supportive of looking for another publisher for our game. However, in the current market environment very few deals are getting made for any game, let alone something on the scale of an MMORPG," said Street in a post on Linkedin.
"We’re doing everything we can to find a publisher or investor. At the same time, we’re encouraging our team members to explore future opportunities and supporting them through the uncertainty."
In a statement sent to Game Developer, NetEase said it's working with Fantastic Pixel to find partners that could help the studio survive.
"We are supporting Fantastic Pixel Castle in its efforts to find publishing and investment partners, as the studio shared earlier. We cherish and value the hard work, dedication, and creativity of every individual and team across all of our studios," said a NetEase spokesperson.
"Developing and investing in video game projects is inherently a long and complex process that requires ongoing evaluation and adaptation. We continue to refine our approach with diligence and discipline, carefully assessing both opportunities and risks in content development to guide investments across our global portfolio."
Earlier this year, NetEase said it remained committed to supporting its overseas studios after Bloomberg reported the Marvel Rivals developer had laid off hundreds of staff across its global studio network and scrapped multiple projects.
Bloomberg claimed NetEase was pulling back on international investments to refocus on a smaller number of evergreen, mass market projects. In response, NetEase said it "has not wavered in its global expansion plans" but added that "organizational structure changes aimed at improving performance are a necessary part of our ongoing growth."
Over the past few weeks, however, NetEase has shuttered Austin-based internal studio T-Minus Zero Entertainment and now jettisoned Fantastic Pixel Castle.
Game Developer asked NetEase whether the company remains as committed to its overseas studios as it claimed at the beginning of the year. The company failed to address that specific query when providing the statement shared above.