Grasshopper Manufacture is an independent studio again. The Osaka-based developer behind No More Heroes and Killer7 confirmed on September 30, 2026 that it has separated from NetEase Games, ending a five-year run as a subsidiary of the Chinese publishing giant, according to reports from Game Informer and Insider Gaming. The change takes effect October 1, 2026, and arrives seven months after Grasshopper shipped its only NetEase-era release, Romeo Is A Dead Man.
Founder and CEO Goichi Suda, known to fans as Suda51, framed the split as mutual and amicable rather than a forced exit. But the timing lands squarely inside a run of retreats NetEase has made from Western and international studios since 2024, which is why the announcement is being read as more than a routine corporate footnote. This piece walks through what actually happened, what Grasshopper and NetEase said, how the split fits NetEase’s broader studio strategy, and what it likely means for Grasshopper’s next game.
What Happened: Grasshopper Manufacture’s Split From NetEase, Explained
Grasshopper Manufacture published a statement on September 30, 2026 announcing it will operate as an independent developer starting October 1, 2026, ending its ownership relationship with NetEase Games. The studio had been a wholly owned NetEase subsidiary since 2021. Suda51 said the decision followed internal discussions about “the next stage of Grasshopper Manufacture’s future” after wrapping work on Romeo Is A Dead Man, the studio’s first all-new IP in roughly five years.
Both companies characterized the separation as negotiated rather than contentious. Grasshopper said the move followed “thorough discussions” with NetEase and credited the publisher’s “generous cooperation” in reaching the agreement. Neither side disclosed financial terms, and no outlet covering the story has reported a sale price, severance structure, or IP ownership breakdown tied to the exit.
What is clear is the sequence of events: Grasshopper spent five years developing inside NetEase’s structure, shipped a single major release, and then exited on terms both sides describe as friendly. That sequence, on its own, would be a modest trade story. It becomes a bigger one once set against how many other studios NetEase has cut loose, downsized, or defunded over roughly the same stretch, which is the context the rest of this piece works through.
Timeline: From GungHo to NetEase to Independence
Grasshopper’s ownership history has two prior chapters. GungHo Online Entertainment first acquired the studio in January 2013, and Grasshopper spent eight years inside the GungHo Group before NetEase signed an equity transfer agreement in May 2021, with the deal publicly announced that October, per Wikipedia’s company history. That made NetEase the studio’s second corporate parent in under a decade.
| Period | Owner | Key Events |
|---|---|---|
| 1998–2013 | Independent | Founded March 30, 1998 by Goichi Suda; released Killer7, the No More Heroes series, Lollipop Chainsaw |
| 2013–2021 | GungHo Online Entertainment | Acquired January 2013; released Let It Die, Travis Strikes Again: No More Heroes |
| 2021–2026 | NetEase Games | Equity deal signed May 2021, announced October 2021; released one title, Romeo Is A Dead Man (February 2026) |
| October 2026–present | Independent | Split announced September 30, 2026, effective October 1, 2026 |
Seen against that history, the NetEase chapter is the shortest and least productive of the three in terms of shipped games, one title compared with multiple releases under both independence and GungHo ownership.
Suda51’s Statement: Why Grasshopper Is Going It Alone Again
Suda51 tied the decision directly to finishing Romeo Is A Dead Man. In a statement quoted by The Gamer, he said: “Having finally completed this all-hands project, as we reflected on the next stage of Grasshopper Manufacture’s future, we found a strong desire to deliver titles in an even wider variety of styles to video game lovers everywhere. As such, Grasshopper Manufacture has chosen to move forward as an independent developer once again.”
On the terms of the split, Suda51 was quoted by Gaming.net saying: “This decision was reached after thorough discussions with NetEase Games, and with their generous cooperation.” That language, combined with a stated intent to “cherish the amazing relationship” between the two companies, is a deliberate signal that this is not a NetEase-driven shutdown like several others the publisher has carried out over the past two years.
Inside Romeo Is A Dead Man: Grasshopper’s Only Game Under NetEase
Romeo Is A Dead Man launched February 11, 2026 on PlayStation 5, Xbox Series X/S, and PC via Steam, as confirmed by the PlayStation Blog. It is a sci-fi action title in which the player hunts wanted criminals across space and time, and it marked the first time Grasshopper self-published one of its own games rather than working through an outside publisher. That self-publishing experience is the detail Suda51 leaned on hardest when explaining the independence move.
In the studio’s public statement, reported by Push Square, Grasshopper said: “Having improved our own self-publishing know-how, we now have a broad range of options available to us, and regardless of how our games may be published we remain committed to creating unique titles featuring the ‘NO GAME NO LIFE’ gaming experience expected of Grasshopper Manufacture with our own signature flavor and further enhanced quality.” The studio closed its statement with a direct appeal to its audience: “We sincerely hope for and deeply appreciate your ongoing support for our studio and the titles we will create in the future.”
NetEase’s Pattern: A String of Western Studio Retreats (2024–2026)
Grasshopper’s exit does not happen in isolation. NetEase Games has spent the past two years pulling back from a number of the overseas studios it spent heavily to acquire during its 2020-2022 expansion push. Industry outlets have documented a steady drumbeat of closures, funding cuts, and layoffs across the publisher’s global portfolio, and Game Developer reported that NetEase leadership has been prioritizing “evergreen, mass-market hits” over the kind of auteur-driven, niche titles Grasshopper is known for.
| Studio | Location | Reported Action | Year |
|---|---|---|---|
| Worlds Untold | Canada | Closed by NetEase | 2024 |
| Jar of Sparks | United States | Project reportedly paused (“on ice”) | 2025 |
| Liquid Swords | Sweden | Layoffs reported | 2025 |
| T-Minus Zero Entertainment | United States (Texas) | Shuttered | 2026 |
| Bad Brain Game Studios | Canada | Shuttered | 2026 |
| Fantastic Pixel Castle | United States | Effectively shut down; was building a triple-A MMO codenamed “Ghost” | 2026 |
| Nagoshi Studio | Japan | Funding cut by NetEase | May 2026 |
| NetEase Games Montreal | Canada | QA staff layoffs | 2026 |
| Grasshopper Manufacture | Japan | Mutually agreed split, studio returns to independence | September/October 2026 |
Every row above is drawn from separate reporting by Game Developer, Insider Gaming, Checkpoint Gaming, and TweakTown on NetEase’s restructuring moves. Grasshopper’s case stands apart from most of that list because it is the only one both companies describe as negotiated rather than imposed, and because Grasshopper walks away as a functioning, independent studio rather than a closed one. It is a similar dynamic to what played out at Microsoft, where Xbox’s own restructuring folded four studios and, separately, cost the team behind Aliens: Fireteam Elite 2 staff and a project delay, both cases where the publisher, not the studio, drove the outcome.
Market Impact: What the Split Means for NetEase’s Global Games Strategy
For NetEase, losing Grasshopper trims one more name from a Western and international studio roster that has shrunk noticeably since the company’s acquisition spree earlier in the decade, a period that also brought Detroit: Become Human developer Quantic Dream under the NetEase umbrella in 2022. The Grasshopper split reinforces a strategic narrowing: rather than running a wide bench of stylistically distinct studios, NetEase appears to be concentrating resources on projects it believes can scale into the kind of “evergreen, mass-market” performers that anchor its live-service and mobile revenue base.
For Grasshopper, the calculus is different. The studio exits with a completed, self-published game under its belt, functional publishing infrastructure, and 28 years of brand recognition built on cult titles rather than blockbuster sales. Losing NetEase’s balance sheet is a real risk for funding future projects, but it also removes any pressure to chase the “mass-market” mandate that has reportedly driven cuts elsewhere in NetEase’s portfolio.
There is also a talent-market angle worth noting. Every studio closure or funding cut on NetEase’s 2024-2026 list represents developers who either lost their jobs or are now working under tighter creative constraints. Grasshopper walking away intact, with its staff and brand together, gives those displaced or unsettled developers elsewhere in the industry a visible example of an exit that did not end in a studio being shut down.
Competitive Comparison: How Grasshopper’s Exit Differs From Other Studio Breakups
Studio divorces from major publishers are not new in gaming, but they tend to follow one of two patterns: an outright shutdown with layoffs, or a negotiated release that lets a studio keep operating. Grasshopper’s situation reads far closer to the second category. That distinction matters for how the announcement should be interpreted next to NetEase’s other 2024-2026 studio actions.
- Grasshopper Manufacture (2026): Negotiated split, studio remains open and independent, both sides describe the relationship as ongoing.
- Fantastic Pixel Castle (2026): Effective shutdown of a triple-A MMO project with no announced continuation path.
- T-Minus Zero Entertainment / Bad Brain Game Studios (2026): Studios shuttered outright by NetEase, per Game Developer and related reporting.
- Nagoshi Studio (2026): Funding cut by the publisher rather than a studio-initiated split, leaving the studio’s future in question.
Grasshopper’s outcome is the one other developers courted by large publishers would most want to see, an exit that preserves the studio’s name, staff, and creative direction, rather than one that ends in closure. It echoes the creative-identity tension Bethesda has had to manage since absorbing Obsidian sixteen years after Fallout: New Vegas, where a distinct studio voice had to be weighed against a larger publisher’s priorities.
Historical Context: 28 Years of Grasshopper Manufacture
Suda51 founded Grasshopper Manufacture on March 30, 1998, making 2026 the studio’s 28th year in operation. Its back catalog is one of the more distinctive in Japanese development: Killer7, co-developed with Capcom and released in 2005 for GameCube and PlayStation 2, remains a reference point for the studio’s surreal, genre-bending style. The No More Heroes series, Lollipop Chainsaw, Shadows of the Damned, Let It Die, and Travis Strikes Again: No More Heroes followed across its independent and GungHo-owned years.
That catalog is the reason the studio’s independence carries weight beyond a standard corporate filing. Grasshopper has built its identity on being a boutique, author-driven studio, and industry watchers have consistently framed Suda51’s creative voice as central to that identity, the exact kind of studio personality that gets diluted inside a publisher chasing broad, repeatable hits. It is the same tension that shaped how critics approached this year’s Silent Hill Townfall, another release where a distinctive creative team operated under a much larger corporate parent.
Self-Publishing as the New Model for Independent Japanese Studios
The self-publishing angle deserves its own look. Digital storefronts, cloud distribution, and marketing tools have made it realistic for mid-sized studios to release games without a traditional publisher fronting the budget and handling retail logistics. Grasshopper tested that model directly with Romeo Is A Dead Man, and Suda51’s own statement credits that experience with giving the studio “a broad range of options” for what comes next.
That does not mean Grasshopper is ruling out working with publishers again. The studio’s language leaves the door open to future partnerships, including, as Suda51 put it, further collaboration with NetEase “when the opportunity arises.” The independence move looks less like a rejection of the publisher model and more like Grasshopper keeping every option on the table for its next project.
What the Verified Statements Actually Confirm
Because a story like this invites speculation about motives, it is worth separating what Grasshopper and NetEase have actually confirmed from what outside analysts are reading into it. Confirmed: the ownership relationship ends October 1, 2026; Grasshopper released one game under NetEase; both companies describe the split as negotiated; Grasshopper plans to keep making games in its own style, self-published or otherwise. Not confirmed by either company: a sale price, a reason tied specifically to NetEase’s broader cost-cutting, or any change to Romeo Is A Dead Man‘s ownership or future support.
Suda51’s quote, “Grasshopper Manufacture has chosen to move forward as an independent developer once again,” reported by Game Informer, is the closest either party has come to a formal rationale, and it centers on creative range rather than finances.
Predictions: Where Grasshopper Manufacture Goes From Here
- A self-published next project is likely. Given how directly Suda51 credited self-publishing know-how gained from Romeo Is A Dead Man, Grasshopper’s next announcement may arrive without a publisher attached at all.
- A smaller-scope announcement should come before a new triple-A pitch. Studios re-establishing independence typically lead with a lower-budget or catalog-adjacent project to rebuild cash flow before committing to another large production.
- NetEase’s Western studio pullback is not finished. Based on the pace of closures and funding cuts through 2026, additional restructuring at NetEase-owned studios outside Japan looks probable in the coming months.
- Expect continued goodwill messaging from both sides. Suda51’s language about future collaboration suggests neither company wants this framed as a falling-out, which could matter if Grasshopper seeks new funding partners who might ask NetEase for a reference.
- Watch for other Japanese studios to test the same self-publish-then-split path. If Grasshopper’s return to independence goes smoothly, it becomes a template other creator-led studios inside larger publishers may point to.
Why This Story Matters Beyond One Studio
Grasshopper Manufacture is a small studio by industry revenue standards, but its ownership changes have become a recurring bellwether for how much creative latitude big publishers are willing to give distinctive, author-driven developers. The 2013 GungHo deal, the 2021 NetEase deal, and now the 2026 split all mark points where a large company weighed how much control to keep over a studio whose value is tied almost entirely to one person’s creative voice. NetEase’s broader 2024-2026 retrenchment from acquired studios adds a second layer: publishers that spent heavily to build global studio networks during the pandemic-era growth years are now actively trimming those networks back, and Grasshopper’s negotiated exit is one of the cleaner examples of how that trimming can happen without a shutdown.
For players, the practical outcome is narrower: Grasshopper says it intends to keep making games, keep its identity, and keep the door open to future publisher relationships. Whether that translates into a quick follow-up to Romeo Is A Dead Man or a longer gap while the studio rebuilds its independent operations is the detail worth watching over the next several months, in a release calendar already crowded by heavyweights like GTA 6’s confirmed November 19 launch, this year’s Golden Joystick Awards nominee slate, and other recent survivor-of-a-big-publisher stories like Control Resonant’s post-launch review climb.
Related
- Xbox Restructuring Hits 75%, Folds 4 Studios [2026]
- Aliens: Fireteam Elite 2 Dev Cuts Staff, Switch 2 Slips 2027
- Bethesda Absorbs Obsidian 16 Years After New Vegas [2026]
- Silent Hill Townfall Review: 92% Praise, 1 Big Flaw [2026]
- GTA 6 Confirms Nov. 19 Launch After 2 Delays [2026]
Frequently Asked Questions
When did Grasshopper Manufacture split from NetEase Games?
The split was announced September 30, 2026, and takes effect October 1, 2026, according to Insider Gaming.
How long was Grasshopper Manufacture owned by NetEase?
About five years. NetEase’s equity deal was signed in May 2021 and announced that October, following Grasshopper’s move from GungHo Online Entertainment’s group.
What games did Grasshopper Manufacture release under NetEase?
One: Romeo Is A Dead Man, released February 11, 2026 on PS5, Xbox Series X/S, and PC.
Who owned Grasshopper Manufacture before NetEase?
GungHo Online Entertainment, which acquired the studio in January 2013 and owned it for eight years.
Why did Grasshopper Manufacture become independent again?
Founder Suda51 said the decision followed “thorough discussions” with NetEase after completing Romeo Is A Dead Man, and cited a desire to pursue “an even wider variety of styles” along with improved self-publishing capability.
Is the split connected to NetEase’s other studio layoffs?
No direct link has been confirmed by either company. However, the announcement follows a broader pattern of NetEase closures and funding cuts at other studios, including Fantastic Pixel Castle, T-Minus Zero Entertainment, Bad Brain Game Studios, and Nagoshi Studio, reported between 2024 and 2026.
Will Grasshopper Manufacture work with NetEase again?
Neither company has ruled it out. Suda51 said Grasshopper will “cherish the amazing relationship” and looks forward to “further collaboration when the opportunity arises.”
What is Grasshopper Manufacture best known for?
Killer7 (2005), the No More Heroes series, and Lollipop Chainsaw, developed across its 28-year history under founder Goichi Suda.
