Tencent closes TiMi Montreal studio after five years

Tencent has shut down its TiMi Montreal studio less than five years after its founding, without the team releasing any games. The closure marks another retreat by Chinese publishers from investments in North American development. Employees expressed heartbreak over the end of the promising venture.

TiMi Montreal, established in 2021 as the third North American office for Tencent's TiMi Studio Group, focused on creating AAA open-world multi-platform games. The studio joined existing locations in Los Angeles and Seattle as part of TiMi's efforts to expand beyond mobile hits like Honor of Kings and Arena of Valor into larger blockbusters. However, it primarily handled projects inherited from its predecessor, Jade Studio, along with mobile spin-offs such as Pokémon Unite and Call of Duty: Mobile.

The studio was led by Ashraf Ismail, former creative director on Assassin's Creed Valhalla at Ubisoft, who joined TiMi in 2022 following his departure from Ubisoft in 2020 amid personal allegations. Despite attracting talent from studios like Ubisoft, TiMi Montreal never announced or shipped any original titles, nor disclosed involvement in recent co-developments.

News of the closure emerged late last week, around February 20, 2026, as reported by Game File, with sources indicating a shutdown was imminent. A senior gameplay programmer shared on LinkedIn: "I am genuinely heartbroken that the public will never get to experience what this team was capable of producing." Another employee, a senior designer, reflected: "This team was exceptional not just in talent, but also in camaraderie. It’s one of those experiences that sticks with you for a very long time, and I feel privileged to have been part of it."

The closure aligns with broader trends among Chinese publishers reducing investments in Western studios due to high development costs. TiMi's Los Angeles-based Team Kaiju, which included former leads from Halo and Battlefield, shut down in 2023. Competitors like NetEase have similarly scaled back recent studio startups. TiMi Group overall employs between 5000 and 10,000 people.

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Illustration of Nagoshi Studio employees in shock amid office closure due to funding cut, with Gang of Dragon game art and rainy Tokyo backdrop.
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NetEase halts funding for Toshihiro Nagoshi's Gang of Dragon, allows studio to continue independently

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NetEase has notified Nagoshi Studio it will stop funding from May 2026 for its debut game Gang of Dragon, after the studio requested an additional ¥7 billion ($44.4 million) to complete the project unveiled at The Game Awards 2025. The studio may continue independently if it secures alternative funding and negotiates to buy back IP rights.

Former Blizzard designer Jeff Kaplan described the cancelled MMO Titan as a major failure on the Lex Fridman podcast. He highlighted its chaotic development, lack of cohesion, and Blizzard's hubris after World of Warcraft's success. Kaplan warned executives to shut it down years before its cancellation.

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Several developers from Warner Bros. Montréal have announced on LinkedIn that they have been laid off, with most finishing on Friday, 13th March. No formal confirmation from the company has been issued yet. The reports come amid ongoing struggles in Warner Bros.' games division.

The developer behind Soulslike action-RPG Wuchang: Fallen Feathers has reportedly dissolved its core team following the departure of producer and director Xia Siyuan. Staff were asked to shift to outsourcing or support roles on other projects, but most declined. The game has received no updates since November 2025.

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Ubisoft's recent company-wide reset has led to the cancellation of six games, studio closures, and a proposed 200 voluntary redundancies in France, prompting unions to vote for strikes. The move includes the scrapping of the long-delayed Prince of Persia: The Sands of Time remake and a price increase for the Just Dance+ service. Shares fell 34 percent, marking the company's lowest value in 15 years.

Swedish studio 10 Chambers, known for GTFO, has confirmed significant layoffs affecting a large number of roles, including several co-founders, as it restructures to focus on upcoming game Den of Wolves. The news emerged on February 13, 2026, via LinkedIn posts from affected employees. Co-founders Ulf Andersson and Simon Viklund remain committed to the project.

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Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

 

 

 

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