NetEase shuts down Bad Brain Games Studio; The Midnight Riders paused and seeking a new home
Another blow to the Canadian game development scene: NetEase has closed Bad Brain Games Studio, its Toronto-based team formed in 2023 by veterans who previously worked on the Watch Dogs series. It’s the publisher’s second closure in a week, following the shutdown of Fantastic Pixel Castle.
Studio head Sean Crooks shared the news on LinkedIn, saying it’s “with a heavy heart” that the team will halt operations on November 17, 2025. According to Crooks, the studio explored every avenue to secure external investment but couldn’t land the funding needed to continue. He praised the team’s creativity and commitment, noting how they pushed “creative and technical boundaries” daily.
Bad Brain’s in-development project, codenamed The Midnight Riders, is now on ice—though not necessarily forever. Crooks confirmed the game and its IP are available “with acquisition or partnership,” adding that the team still believes strongly in what they built and hopes it can reach players.
What was The Midnight Riders? A stylish, retro-themed action-adventure about a group of school kids pedaling through mysterious worlds on bicycles, confronting eldritch horrors with everyday tools like slingshots and baseball bats. A short sizzle reel had already drawn praise for its distinctive art direction and intriguing gameplay ideas.
Bad Brain employed nearly two dozen developers, many hired from major studios. The closure forces staff to seek new roles amid a difficult year for the industry, where tens of thousands of developers have been affected by layoffs.
This marks the third high-profile studio connected to NetEase to shutter in recent months. Earlier, T-Minus Zero Entertainment also closed but later reached a deal with a consortium of veteran directors and founders for its name and assets. Whether The Midnight Riders can secure a similar lifeline now depends on interested partners stepping in to acquire or revive the project.
Key takeaways:
– NetEase has closed Toronto-based Bad Brain Games Studio, founded in 2023 by Watch Dogs veterans.
– The Midnight Riders, a retro-themed action-adventure, is paused; the IP is available for acquisition or partnership.
– The studio cited unsuccessful funding efforts; leadership praised the team’s work and creativity.
– Nearly two dozen employees are affected amid widespread industry layoffs.
– This is the second NetEase studio to close this week and the third in recent months.
If you’re a publisher or investor looking for a distinctive, marketable concept with existing momentum, The Midnight Riders could be a timely opportunity—and a chance to bring a promising new world to players.
