Three Studios Shut Down Just Two Weeks into 2025: Industry Faces More Layoffs

Godfall and Robocraft Developers Among the Affected

The gaming industry has been hit hard just weeks into 2025, with the closure of three studios and multiple layoffs reported across the sector.

Studios Closing Doors

Toadman Interactive, known for developing Immortal: Unchained and Bloodsports TV, announced its closure. Parent company Enad Global 7 cited financial struggles, stating, "This decision does not come lightly." The company has promised to honor ongoing work-for-hire contracts, but the closure will immediately impact all other employees.

Piranha Games, also under Enad Global 7, faced significant layoffs, with 38 employees let go. Despite critical acclaim for its latest MechWarrior title, sales failed to meet expectations. Enad Global 7's CEO Ji Ham remarked, "The team delivered exceptional work, but the game did not attract the new audiences we anticipated."

Freejam, the creator of Robocraft 2 and CardLife, announced its closure via Discord. The studio confirmed it will sunset its games over the coming weeks.

Counterplay Games, known for the PlayStation 5 launch title Godfall, was also "disbanded" after its partnership with Jackalyptic Games ended last month.

Wider Industry Impact

These closures follow recent developments, including Splash Damage halting production on Transformers: Reactivateand scaling down its operations. Suicide Squad: Kill the Justice League developer Rocksteady also laid off staff late last year.

Ongoing Challenges

The wave of layoffs and studio closures reflects ongoing struggles in the gaming industry, with economic pressures and shifting audience demands taking a toll. For more insights into this trend, read Chris Dring's feature: What is going on with layoffs in the video games industry?