Sweden’s Liquid Swords is navigating a challenging landscape in the gaming industry, prompting the studio to make significant workforce reductions. In a heartfelt message posted on the company’s website, CEO Christofer Sundberg addressed the difficult decision, attributing it to “the present challenges” that have emerged within the sector.
Background and Funding
Founded in 2020 by the visionary behind Avalanche Studios, Liquid Swords quickly garnered attention and support, securing funding from the Chinese tech giant NetEase just two years later. This backing positioned the studio for ambitious growth and innovation in game development.
While the exact number of affected employees has not been disclosed, Sundberg expressed deep regret over the layoffs, emphasizing the impact on the talented individuals who have contributed significantly to the studio’s journey. “I promised our employees and shareholders success and to build a studio redefining game development with a small, expert-driven team and a sustainable work model,” he stated.
Despite the achievements made thus far, Sundberg acknowledged that shifting market conditions hindered the studio’s ability to meet its initial timeline for success. “As a result, we must part ways with talented individuals who have been instrumental in our journey. This is incredibly difficult, but we remain committed to our vision and will continue to work on our IP and first game with a dedicated team,” he reassured.
Industry Trends
Liquid Swords is not alone in facing these challenges. The studio joins a growing list of NetEase-backed ventures that have recently announced job cuts. In November, Worlds Untold revealed it was pausing operations, followed shortly by Jar of Sparks, which also sought a new publishing partner amidst similar struggles.
The current climate in the gaming industry underscores the volatility and unpredictability that many studios are grappling with, as they strive to adapt and thrive in an ever-evolving marketplace.
