NetEase Shuts Down Fantastic Pixel Castle, Studio Behind "Ghost" MMO

11/03/2025

NetEase, a prominent publisher in the gaming industry, has confirmed the closure of Fantastic Pixel Castle, a development studio headed by the influential game designer Greg Street. This decision comes amidst broader restructuring within NetEase's international studio portfolio. Fantastic Pixel Castle, established in 2023, was actively developing an original fantasy massively multiplayer online game known by its codename, \"Ghost.\"

Gaming Studio Fantastic Pixel Castle Faces Closure as NetEase Restructures

In a significant development for the gaming industry, NetEase is intensifying its internal team reorganizations, leading to the imminent shutdown of Fantastic Pixel Castle. This studio, founded in 2023, was under the direction of industry veteran Greg Street, renowned for his pivotal roles in the development of \"World of Warcraft\" at Blizzard and \"League of Legends\" at Riot Games. Fantastic Pixel Castle was in the process of creating \"Ghost,\" an original fantasy-themed massively multiplayer game.

Just weeks before this announcement, Street had disclosed on LinkedIn that Fantastic Pixel Castle's tenure as a first-party studio with NetEase Games was concluding, prompting the team to seek alternative financial backing. Although there's a slim possibility of securing funding post-November 17 closure, Street acknowledged the inherent challenges in attracting investment for large-scale MMO projects. His primary concern remains assisting his team members in securing new employment opportunities, whether within a potential \"Fantastic Pixel Castle 2.0\" or other stable gaming and technology companies.

Greg Street, widely recognized by the \"World of Warcraft\" community as \"Ghostcrawler,\" served as lead systems designer at Blizzard from 2008 to 2013, a period coinciding with the game's peak popularity. Following his time at Blizzard, he joined Riot Games in 2014, contributing to \"League of Legends\" and later an unannounced MMO set within the League of Legends universe, before departing from his executive position in 2023.

The closure of Fantastic Pixel Castle is part of a wider trend of NetEase disengaging from several international studios. Affected entities include Worlds Untold, a Vancouver-based developer led by former BioWare creative Mac Walters; Jar of Sparks, a Seattle-based studio established in 2022 by Xbox veteran Jerry Hook; and Ouka Studio, a Tokyo-based developer known for its work on \"Visions of Mana\" for Square Enix.

Earlier in February, Street had expressed optimism regarding his studio's immunity to NetEase's cutbacks, telling Polygon that he felt they were in a stronger position due to NetEase's perceived focus on their game. Despite the current setback, Street conveyed gratitude to NetEase supporters and the numerous individuals who offered assistance in capital raising, holding onto the hope that a single successful funding effort could still emerge.

The closure of Fantastic Pixel Castle by NetEase highlights the volatile nature of the video game development landscape, particularly for ambitious projects like MMOs. It underscores the critical importance of secure, long-term funding and stable corporate backing for creative ventures. This situation also serves as a poignant reminder of the human element in the industry, with experienced developers facing uncertainty. While the immediate future for the \"Ghost\" MMO and the Fantastic Pixel Castle team remains unclear, the resilience and talent within the industry often lead to new opportunities and innovations, suggesting that this may not be the final chapter for these skilled individuals.