NetEase is divesting Fantastic Pixel Castle as studio head admits that if the studio doesn’t soon find a publisher or investor for its upcoming MMORPG codenamed Ghost, “the reality is that the studio would likely close.”

In a statement posted to LinkedIn, studio head Greg Street confirmed that “Fantastic Pixel Castle’s time as a first party studio within NetEase Games is coming to an end,” adding “NetEase Games has been very gracious and supportive of looking for another publisher for our game” but acknowledged “in the current market environment, very few deals are getting made for any game, let alone something on the scale of an MMORPG.”

“We’re doing everything we can to find a publisher or investor,” Street added. “At the same time, we’re encouraging our team members to explore future opportunities and supporting them through the uncertainty.

“If we’re unable to find a publisher soon, the reality is that the studio would likely close, and the entire team, leadership included, would be affected.”

Street finished by thanking the Ghost community, playtesters, and “the literally hundreds of people who have given us advice on how to find funding in this absurdly challenging time for our industry. I hope you all will have a chance to play Ghost.”

“I also want to thank the FPC team who has made a game that we all should be proud of. I know it’s cliche to say this, but demonstrably this is the best team I have ever worked with,” he concluded. “We are rigorous in collecting data, and the data on our team morale and performance is higher than I have ever seen. Despite the challenges, the past two years have been the most satisfying of my career.”

NetEase and industry veteran Street formed Fantastic Pixel Castle in late November 2023.