NetEase's Western studio retreat is a capital reallocation play, not a cost cut - anchor point development spin-out confirms the pattern
Summary
Anchor Point Studios, NetEase-backed since 2023 and led by Remedy/Smilegate veteran Paul Ehreth, is spinning out as an independent studio
The split is at least the fifth Western studio NetEase has spun out or shuttered, despite reporting record 2025 gaming revenue of RMB 92.1B ($13.2B), up 10.1% YoY
This is deliberate capital reallocation toward domestic IP, not financial distress - a structural signal for VCs and developers relying on Chinese publisher backing
"Now, as an independent studio, we have the opportunity to focus our vision even more sharply and pursue new partnerships that align with our creative ambitions"
01
Anchor Point enters the market mid-build, seeking replacement capital
Studio launched by NetEase in 2023, headquartered in Barcelona with a Seattle office, focused on console and PC action-adventure
CEO Paul Ehreth previously led design on Alan Wake 2 and Control at Remedy and directed at Smilegate Barcelona
Ehreth called the separation an "important milestone" approached with "optimism, clarity, and excitement"
Studio is now opening conversations with prospective investors and partners for its in-progress project
02
Five Western exits and counting despite record domestic performance
NetEase has spun out or shuttered Bad Brain, NetEase Montreal, T-Minus Zero, and Fantastic Pixel Castle
It also sold mobile studio Mattel163 back to Mattel, extending the retreat beyond core development
2025 gaming revenue growth was driven entirely by domestic titles: Fantasy Westward Journey Online, Identity V, Where Winds Meet, Marvel Rivals
No Western studio contributed a named revenue driver to the record $13.2B gaming segment
03
Financial data rules out distress as the driver
NetEase overall 2025 revenue: RMB 112.6B ($16.1B), up 6.9% YoY
Gaming segment: RMB 92.1B ($13.2B), up 10.1% from $12.1B in 2024
Online games accounted for 97.3% of gaming segment revenue
Exiting Western studios at peak domestic returns confirms deliberate portfolio restructuring
04
Funding landscape implications for VCs and Western developers
Repeating structure: Chinese publisher funds formation, builds team, exits before commercial release, studio re-enters funding market mid-development
Spun-out studios carry an asset (existing team, IP foundation) and a liability (active burn rate, no revenue, compressed runway)
Growing supply of publisher-orphaned studios competes for the same VC and partner capital as safety nets contract
For developers in early-stage talks with Chinese publishers, five exits in sequence is a risk pattern worth pricing into deal terms
Events
Companies
Games
Locations
ChinaEurope
COMPILED BY GAMES ATLAS EDITORIAL
RELATED ARTICLES
EXPLORE MORE
Comments (0)
No comments yet. Be the first to share your thoughts!