NetEase Divests Fantastic Pixel Castle, Stock Rises Amid Studio Uncertainty
NetEase shares climbed 2.08% Tuesday following its divestiture of game studio Fantastic Pixel Castle, extending a 71% year-to-date rally. The MOVE leaves the studio's flagship MMORPG 'Ghost' in limbo, with founder Greg Street warning of potential closure without new investment.
Street confirmed NetEase actively sought alternative publishers before the separation, ultimately opting for divestment when no partners emerged. The studio now independently seeks funding to continue development—a race against time to prevent team dissolution.
Market response appears bullish despite the operational uncertainty, with NetEase stock maintaining its meteoric 82% 12-month trajectory. The divestment signals strategic portfolio optimization by the Chinese gaming giant, though the human cost remains palpable through Street's LinkedIn disclosure.
