Layoffs and studio closures seem to be the norm in today’s gaming industry, and today, another blow has been struck. A highly anticipated MMO project is facing cancellation as the studio behind it faces closure. What makes this particularly painful is that the ambitious studio was led by veterans from Blizzard, who have an incredible track record with the popular MMO World of Warcraft. Sadly, unless a miracle happens or the studio receives funding elsewhere, this project will never see the light of day. According to the studio, there are efforts being made, but it remains uncertain if they will pan out.
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Fantastic Pixel Castle is a game development studio led by veterans of Blizzard that had support from NetEase. They were behind the upcoming MMO, Ghost, but this project has now been canceled as the studio is set to close its doors on November 17th. This announcement comes only two years after the studio opened its doors.
“Fantastic Pixel Castle will close its doors on Nov 17. While there is still a chance we can secure funding after that date, it will depend on how much of the team remains.”
Ghost was set to be a new MMO, but not much was known about it. Greg Street, the Studio Head and Game Director, shared his appreciation for these and other supporters. It wouldn’t be a surprise to see someone come forward later and share details regarding the game. This could be concept art, gameplay videos, or more. Fantastic Pixel Castle also teased that it may share content regarding Ghost as well in the upcoming weeks.
NetEase is a publishing giant, perhaps best known right now for Marvel Rivals. It started in 2025 by laying off numerous developers as well as other studios, including T-Minus Zero. There was no specific reason given for the layoffs, but considering how often this type of thing happens in the industry, it usually pertains to revenue.
This isn’t the only MMO to have been canceled. Amazon’s New World was just revealed to be canceled and will no longer receive support. This is a part of a growing problem within the gaming industry. Microsoft is another studio that has performed numerous layoffs and studio closures. As AI becomes more prevalent in game development, studios are relying less on individuals. Furthermore, shareholders are pushing for larger profits and continual growth. This has led to a bubble in which it is more important than ever for a game to be successful or promising.
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