NetEase has quietly dismantled Spliced, its ambitious remote-first AAA game studio launched in 2023 with a radical mission: to dismantle the toxic crunch culture plaguing the industry. Just eight months after expanding its team, the studio is now shutting down, with layoffs already underway in its UK office and unconfirmed risks for its US and Canadian branches. The move reflects a broader trend of studio closures and job cuts across the gaming sector, as publishers grapple with economic pressures and shifting priorities.
Spliced’s closure was revealed through LinkedIn posts from three senior staff members—including lead animator Matt Johnson and senior environment artists Sergii Zlobin and Kenji Shimomura—who confirmed an ongoing redundancy process. Shimomura, now unemployed, described the situation as surreal: a AAA studio collapsing before releasing any games. The cancellations suggest at least one major project has been scrapped, though no titles have been announced.
- Founded: 2023 as a remote-first AAA studio with anti-crunch policies.
- Key principles: Flexible hours, work-life balance, and realistic project scopes.
- Layoffs: UK office already affected; US/Canada status unclear.
- Impact: Senior roles lost, including lead animator and senior environment artists.
- Project status: At least one AAA game cancelled, no releases confirmed.
- Broader context: Part of a wave of gaming industry layoffs, including Avalanche Studios, Ubisoft, and Wildlight.
- Timing: Hiring spree in November 2025; shutdown announced February 2026.
The studio’s rapid dissolution raises questions about whether its anti-crunch model was sustainable—or simply ahead of its time. While Spliced’s approach resonated with developers tired of crunch, the gaming industry remains volatile, with publishers prioritizing cost-cutting over experimental structures. For now, the studio’s legacy hinges on whether its principles can be salvaged elsewhere—or if it becomes another casualty in the sector’s push for efficiency over innovation.
NetEase has not issued an official statement, leaving affected employees and industry observers to piece together the reasons behind the shutdown. With no games to show for its efforts, Spliced’s fate serves as a stark reminder of the challenges facing even the most well-intentioned studios in today’s gaming landscape.
