Grasshopper Manufacture negotiates independence from NetEase as retrenchment sweeps eight studios
Summary
Grasshopper Manufacture split from NetEase Games on September 30, 2026, five years after NetEase acquired the studio from GungHo Online Entertainment in 2021.
The exit followed negotiated discussions rather than a shutdown, distinguishing Grasshopper from at least eight other NetEase-backed studios closed or defunded since 2024.
"Having improved our own self-publishing know-how, we now have a broad range of options available to us"
Neither company disclosed financial terms of the separation.
01
Deal mechanics: negotiation replaces closure
NetEase acquired Grasshopper Manufacture in 2021 from GungHo Online Entertainment.
Grasshopper was 23 years old at acquisition.
"This decision was reached after thorough discussions with NetEase Games, and with their generous cooperation"
Both companies signal intent to maintain a relationship and pursue future collaboration.
No purchase price, buyout structure, or IP transfer terms were disclosed.
02
Self-publishing know-how underwrites the exit
The split follows completion of Romeo Is A Dead Man in February 2026.
It also follows Grasshopper's 28th anniversary in March, which Suda calls "this all-hands project."
"We found a strong desire to deliver titles in an even wider variety of styles to video game lovers everywhere"
Grasshopper's self-publishing capability improved during NetEase ownership.
Self-publishing is the only concrete disclosed asset from the separation.
03
NetEase's retrenchment spans at least eight studios
T-Minus, FPC, and Bad Brain were closed outright by NetEase.
Tokyo-based Ouka Studio, developer of Visions of Mana, closed in 2024.
Worlds Untold, founded with Mass Effect writer Mac Walters in 2023, paused operations amid funding issues.
Jar of Sparks, founded in 2022 by Xbox veteran Jerry Hook, faces its own funding troubles.
Nagoshi Studio reportedly faces closure after NetEase pulled funding for Gang of Dragon.
GPTRACK50, founded by Resident Evil producer Hiroyuki Kobayashi, self-publishes Stupid Never Dies this month without NetEase backing.
GPTRACK50 is the closest precedent to Grasshopper's move.
NetEase's roster splits into three tiers: outright closure, funding withdrawal, and negotiated independence.
04
Signals to watch next
GPTRACK50 self-publishes Stupid Never Dies this month.
It is the next real-world test of whether a NetEase-orphaned studio can sustain itself.
Nagoshi Studio's fate remains unresolved after NetEase pulled Gang of Dragon funding.
Nagoshi is the clearest case of retrenchment tipping toward closure.
"We hope you will continue to watch over Grasshopper Manufacture as we make this next leap forward and move on to our upcoming 30th anniversary and beyond"
What this means
For Investors & VC: Add parent-funding durability and buyback rights to diligence on any Chinese-backed Japanese studio.
For Service Vendors: Pitch outsourced publishing, porting, and localization to newly independent Grasshopper and remaining NetEase-orphaned Japanese studios.
For Publishers & Developers: Approach Grasshopper now with co-publishing or funding offers for its post-NetEase slate.
Events
Companies
Games
Locations
ChinaJapan
SYNTHESIZED FROM:
COMPILED BY GAMES ATLAS EDITORIAL
RELATED ARTICLES
EXPLORE MORE
Comments (0)
No comments yet. Be the first to share your thoughts!