The ghost of layoffs and game studio closures continued to hover around the game industry in 2024. Barely a month passed without the announcement of a game studio closure. We are down to the last month of the year, and there is no better time to recap some of the notable events that have transpired throughout the year.
The trend of layoffs and studio closures continued in 2024. The number of layoffs this year nearly doubled those of last year. Worse even was the staggering number of video game studios that announced they were closing shop this year—some after being in existence for over a decade.
From indie to established studios, the closure of these game studios has impacted both the employees and players, some of who are now forced to sever ties with studios that are part of their memories. Without further ado, here are 21 game studios that shut down in 2024—and the month they were shuttered. Number 20 was a colossal disaster that set the media on fire for days.
Little Red Dog Games (January 22)
On January 22, 2024, it was announced that indie developer Little Red Dog Games best known for making Rogue State Revolution and other positively reviewed strategy games was closing shop. The game studio had around 27 employees at the time of closure and the circumstances leading to the closure remain unclear.
PlayStation Studios’ London Studio (February 27)
On February 27, 2024, the then Sony Interactive Entertainment’s president and CEO Jim Ryan announced sweeping changes in the company that led to the reduction of its workforce by 900 people. Affected by that change was PlayStation London Studio which had over 100 employees. The closure of the studio made every staff redundant.
Deviation Games (March 9)
Deviation Games received backing from PlayStation a year after it was formed and was working on a debut IP. Deviation Games’ closure was particularly surprising because one of the founders Dave Anthony had previously said that the studio had “complete financial security for years and years to come”.
Smilegate Barcelona (March 27)
Smilegate Barcelona opened its doors in 2019 but was shut down barely five years later. The studio was created in partnership with game industry veterans. The studio’s game director Stephane Blaise said in a farewell message that the industry was starting to look more like a game of Battleship. Around 50 employees were impacted by the closure.
Possibility Space (April)
We believe the events that followed the closure of Possibility Space was a new low in layoffs with the studio founder blaming the employees for the closure. We learned of the layoff through posts of former employees, some of whom could not hide their frustration at the management for the decision. The studio was founded in 2021 by Jeff Strain.
Paladin Studios (May 2)
Paladin Studios CEO shared a lengthy message on May 2, 2024, announcing that the studio is permanently shutting down. At its peak, the studio had 55 employees but had 45 employees at the time of the closure. Paladin Studios was founded in 2005. The studio’s management blamed the closure on their inability to “land enough work to cover our burn rate”. The studio will continue to support its games.
4 Bethesda Studios (May 8)
In a decision that surprised many, Xbox announced the closure of four Bethesda studios including Tango Gameworks, the studio behind the multiple award-winning game Hi-Fi Rush. Arkane Austin, Alpha Dog, and Roundhouse Games were also impacted. Xbox Game Studios head Matt Booty said the decision was due to reprioritization of titles and resources. Later in August, Tango Gameworks was revived through the studio’s acquisition by Krafton, a deal hailed by Hi-Fi Rush fans.
Timbre Games (June 12)
In June, Sumo Group announced that it was laying off 15% of its global workforce and shutting down Timbre Games—although this was not included in the company’s official statement. The shuttering came at a time when Timbre Games was planning to transition from remote to hybrid work. Just like Tango Gameworks, Timbre Games was given a second chance in September through a deal with its parent company that will see it transition to an indie studio.
Pieces Interactive (June 17)
Three months after the release of Alone in the Dark, Pieces Interactive announced that it was shutting its doors. The decision was blamed on the poor commercial performance of Alone in the Dark. Pieces Interactive was founded in 2007 and has released over ten titles across PC, console, and mobile. Two months before the closure, the studio laid off an undisclosed number of employees.
Galvanic Games (June)
Wizard with a Gun maker Galvanic Games announced its closure in June which it blamed on the studio’s inability to attract new project funding. The studio founder and president Patrick Morgan said, “Despite the promising start of Wizard with a Gun, sales are not strong enough to sustain our studio”. Galvanic Games was founded in 2015.
Piranha Bytes (July)
Embracer struck again in July with the shuttering of Piranha Bytes. The studio was behind the development of ELEX, Gothic, and Risen. Two veterans of the studio launched a new indie company called Pithead Studio. They said they will continue to make role-playing games which Piranha Bytes was known for. Piranha Bytes was founded in 1997.
Rumble Entertainment (July)
Mobile game developer Rumble Entertainment permanently shut its doors in July. The entire studio staff was laid off with one month of pay. The news was particularly sad because it came weeks after the passing away of the studio’s former CEO. Rumble Entertainment was founded in 2011 and created several free-to-play games including Towers and Titans.
Ouka Studio (September)
September began with the announcement that the legendary studio behind Vision of Mana was facing closure. The decision was due to the scaleback of NetEase’s investment in the Japanese market. The report claimed NetEase has cut all but a handful of jobs and those remaining will oversee the rollout of its final games.
Merge Games (September)
Merge Games was shut down after being in the industry for 15 years. The 22-person-team game studio brought hundreds of indie gems to storefronts around the world. Merge Games was founded in 2010 by managing director Luke Keighran. Fingers pointed at the management for the decision.
Team Blue (October)
October almost seemed like a great month for the industry until Netflix announced the shuttering of Team Blue. The studio was put together to spearhead the streaming giant’s foray into AAA game development. Weeks later, Mike Verdu, Netflix’s VP, of GenAI for Games announced that the company was tinkering with the use of AI to make games. Many immediately attributed the news as the reason for closing Team Blue.
Studio Thunderhorse (October 23)
Flynn: Son of Crimson developer Studio Thunderhorse is one of the game studios to bite the dust in 2024. The studio blamed the closure on unsurmountable development hurdles. According to management, shutting down the studio was “the right choice for the long-term health of the team and the studio”. Before its closure, Studio Thunderhorse was working on its fourth game titled Ronin Rush.
Firewalk Studios (October 30)
Arguably the biggest game studio closure news in October was the shutting down of Firewalk Studios and Neon Koi by Sony. The ripples of Firewalk Studios’ shutdown reverberated through the media for days owning to how much Sony sunk into the making of the studio’s debut game, Concord. By the way, Concord was taken offline less than two weeks after its launch. The closure ended the jobs of around 200 people.
Humanoid Origin (November 26)
Humanoid Origin, the indie studio founded by former BioWare general manager Casey Hudson announced its closure in November. The studio’s management blamed the closure on “an unexpected shortfall of funding”. The studio was founded in 2021 and was working on a new science-fiction universe before its closure.
Last year, some studios were shut down a few days before Christmas. Many called it a wicked act because of how it would ultimately ruin the holiday celebrations for those impacted. Hopefully, we won’t experience a repeat of that this year.
By the way, which of the studio closures did you find most devastating? Share your thoughts in the comment box below.
