NetEase Games has Acquired Grasshopper Manufacture
(nichegamer.com)
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Disappointing but not unexpected. Those smaller Japanese games that still try to push for big budgets just don't sell enough, and China has money to burn.
I wouldn't say it's an immediate death knell for the company. They still may be able to make 1 or 2 good games while talent still is there, but eventually they will probably get replaced.