Following the failure of KartRider: Drift, the developer Nitro Studio has officially filed for bankruptcy.

Nexon made the disclosure via its official IR page on the 21st, laying bare the financial details behind the move. Nitro Studio, the developer of KartRider: Drift, was established in August 2020 as a joint venture between Wonder Holdings and Nexon Korea. By February 2024, Nexon Korea had acquired all shares held by Wonder Holdings, turning it into a wholly-owned subsidiary.

Nitro Studio launched its global successor to the racing franchise, KartRider: Drift, in March 2023, effectively burning its bridges by shuttering the original game. Despite the hype surrounding the graphical overhaul of such an iconic IP, the title was met with sharp criticism regarding the user experience and general lack of polish. As players headed for the exit, the studio pulled the plug on its global services—excluding South Korea and Taiwan—last August, before finally calling it a day for the remaining regions on the 16th.

According to Nexon’s IR filings, Nitro Studio was saddled with total liabilities of approximately 105.859 billion KRW, 83 billion KRW of which was debt owed to Nexon Korea. The studio recorded operating losses for three consecutive years: 1.816 billion JPY (approx. 17.06 billion KRW) in 2022, 2.303 billion JPY (approx. 21.63 billion KRW) in 2023, and 1.72 billion JPY (approx. 16.15 billion KRW) in 2024.

Nexon stated, "While Nitro Studio launched its own title in March 2023, the game failed to meet performance expectations, and service was terminated on October 16, 2025." They further remarked, "We have concluded that Nitro Studio has fulfilled its corporate role, and that liquidation through bankruptcy is the most appropriate course of action, thus we have decided to initiate the filing."