Bad Brain Game Studios to shut down after partner search falls through

• Bad Brain was formed in 2023 with former Ubisoft Toronto developers.
• It was NetEase’s second Canadian studio after acquiring SkyBox Labs.
• The closures come amid reports that NetEase is scaling back overseas operations.

NetEase subsidiary Bad Brain Game Studios is shutting down after failing to secure a new partner for its project Midnight Riders.

The Canada-based developer said it will cease operations on November 17th, 2025 but is open to partnerships and acquisition opportunities. 

“Despite our continuing efforts to seek a new partner for the project, a path forward has yet to materialise," studio head Sean Cooks in a post. “We are deeply grateful to NetEase Games for their support and for giving us a runway to explore every possible opportunity. 

“Our team poured everything into this journey pushing creative and technical boundaries every day with passion, imagination, and craft. What we achieved together stands as lasting proof of this team's extraordinary talent.

He added: “As we close this chapter, the game and its underlying IP is still available for acquisition or partnership, and we/NetEase are open to discussions with publishers or studios who see potential in continuing its development."

Scaling back

NetEase established Bad Brain Game Studios in 2023 with former Ubisoft Toronto staff, marking its second Canadian studio after acquiring SkyBox Labs. 

It’s now the second NetEase subsidiary to close, following Fantastic Pixel Castle, which is also set to shut down on November 17th, 2025. 

This comes after Game File reported that NetEase has been scaling back and attempting to offload some of its overseas studios, though the company previously denied this.