Since the start of 2025, three studio closures along with multiple layoffs have been reported across the industry.
Studios closing down include Toadman Interactive, which developed titles such as third-person shooter Immortal: Unchained and Hero Defense game Bloodsports TV. The studio also offered support on games including The Lord of the Rings Online and MechWarrior 5: Mercenaries.
Speaking on Toadman’s closure, parent company Enad Global 7 wrote: “This decision does not come lightly and follows several initiatives to turn the subsidiary profitable, including the cost-saving measures executed last year. Ongoing Work-for-Hire (WFH) contracts with Daybreak and Cold Iron will be protected in this process, this means that a complete closure of activities will be optimized to fulfill the contract’s deliverables.
“This will have an immediate effect on all employees not engaged in these contracts.”
To see this content please enable targeting cookies.
In addition, Enad Global 7 announced 38 employees at its Piranha Games studio will be laid off. These layoffs come after the most recent game in the studio’s Mechwarrior series “performed below expectations”.
“The team at Piranha truly delivered a high-quality game that exceeded both internal as well as external expectations in terms of quality, story and gameplay,” said Enad Global 7’s CEO Ji Ham. “Despite the phenomenal work by the team at Piranha, the game failed to reach new audiences and expand its core audience as anticipated and therefore has not met the necessary sales targets, which has forced us to undertake necessary actions.”