NetEase pulls funding for another studio: Former Halo Infinite design head says Jar of Sparks is 'halting work' while it looks for a new publisher
NetEase launched a new game studio called Jar of Sparks in 2022, headed up by Halo and Destiny 2 veteran Jerry Hook. The goal, NetEase said at the time, was "to create a new generation of narrative-driven action games, with immersive worlds that will be filled with moments that gamers will want to share with each other." But just a couple years down the road, that's all come to naught, for now at least, as Hook announced on LinkedIn (via VGC) that Jar of Sparks is halting work while it tries to find a new publisher.
"Earlier today, we notified our team that Jar of Sparks will be halting work on our current title as we search for a new publishing partner who can help bring our creative vision to life," Hook wrote in a message posted on January 7. "Throughout this journey, our passionate, driven, and innovative team took bold risks and pushed boundaries, striving to create something truly new and exciting for the industry. We couldn’t be prouder of the groundwork we’ve laid together.
"As we prepare for this next step, our talented team members will be exploring new opportunities. If you’re searching for exceptional professionals who are driven and think outside the box, please reach out. We’d be more than happy to connect you with some of the best developers I have had the pleasure of working beside."
If this feels oddly familiar, you might be thinking about Worlds Untold, the NetEase studio founded in 2023 with BioWare veteran Mac Walters at its head. That studio also had big aspirations—to "create IPs with depth and possibility that can't be contained in a single game, or even a single medium"—and Walters, as did Hook, praised NetEase as the ideal partner for the new venture. In November 2024, it too "paused operations" after NetEase decided to halt financing.
Much like the Worlds Untold situation, Hook's message suggests the situation is temporary, and it may well be: Hook concluded by saying that "we look forward to updating you all with our next step in our journey." But the fact that employees are now "seeking new opportunities"—which is to say, they no longer have jobs—pretty clearly indicates that this is more than just a bump in the road.
It may also point to a broader shift in priorities at NetEase, which said when it ended funding for Worlds Untold that "current market conditions have required us to reassess and prioritise our opportunities." Numerous other companies have cited "market conditions" as justification for layoffs and closures over the past couple years and that's no doubt part of it, but NetEase also recently renewed its deal to operate Blizzard games in China, which the company said in its November 2024 financial results has "reignited historic level of player community enthusiasm" and seen a significant increase in pre-shutdown player numbers. The company may simply be looking to retrench with guaranteed money-makers, rather than rolling the dice on all-new projects.
I've reached out to NetEase for comment and will update if I receive a reply.