studio closures

AppWizard
March 28, 2026
Mohawk Games, established in 2013 by former Firaxis developers, is preparing to launch new downloadable content (DLC) for their 2021 grand strategy game, Old World. The studio, which employs 15 individuals, has sustained its operations through revenue from Old World. The upcoming expansion, titled Empires of the Indus, will introduce three new civilizations and is scheduled for release on March 30. Co-founder Soren Johnson expressed a desire to explore creative avenues beyond grand strategy and has ambitions to develop a light tactical RPG. While there are no immediate announcements for new projects, Johnson has a list of game ideas he finds exciting.
AppWizard
March 25, 2026
Sony has decided to close Dark Outlaw Games, a studio founded by Jason Blundell, just over a month after announcing the closure of Bluepoint Games. Dark Outlaw was still in the early stages of development on an unannounced project. Reports indicate that Sony laid off an undisclosed number of employees, with estimates suggesting around 50 individuals were affected. Blundell had previously expressed enthusiasm for the studio's partnership with Sony, highlighting the privilege of being a new first-party studio. Before Dark Outlaw, Blundell was involved with Deviation Games, which closed in 2024 without releasing a game. The gaming industry has faced significant layoffs and studio closures in 2023, with Epic Games announcing layoffs of over 1,000 employees due to insufficient revenue.
AppWizard
January 2, 2026
In 2026, the gaming industry is experiencing a push for unionization among developers, highlighted by a legal dispute involving Rockstar Games and former developers of GTA 6. The proposed billion-dollar acquisition of Electronic Arts (EA) could reshape North American gaming, potentially leading to significant cuts and debt for EA. A healthier dialogue about the portrayal of sex in gaming is emerging amid a crackdown on adult-themed games. Microsoft faces job cuts and project cancellations while announcing record profits, raising ethical concerns about its partnerships and creative stagnation. The ongoing conflict in Ukraine presents challenges for developers, influencing future game narratives. Additionally, the generative AI boom is disrupting RAM availability and pricing, potentially increasing costs for gaming hardware.
AppWizard
December 10, 2025
Netflix has acquired Warner Bros. Discovery in a deal valued at nearly billion, which includes assets such as HBO, HBO Max, the DC Universe, and game studios. Despite this acquisition, Netflix's interest in expanding its gaming initiatives appears limited, as the company is shifting focus towards investments in generative AI. Warner Bros. has experienced both successes and challenges in its gaming division, with notable titles like Hogwarts Legacy and failures such as Suicide Squad: Kill the Justice League leading to restructuring and project cancellations. The future of Warner Bros. Discovery and its gaming division remains uncertain amidst ongoing industry changes.
AppWizard
November 19, 2025
Hytale was originally developed by Hypixel Studios and acquired by Riot Games in 2020. Riot announced the cancellation of Hytale in June, but a deal was made with Hypixel's co-founder, Simon Collins-Laflamme, to revive the project. Hypixel has shared gameplay footage and aims to combine elements from Minecraft and platforms like Roblox. The game faced delays under Riot's management, but Hypixel is now focused on delivering a playable version and will announce an early access release date soon. They have decided to revert to the original engine for development while planning future cross-platform functionality. Collins-Laflamme noted that the current version has imperfections but shows promise, and he assured that Hytale will not take any revenue from modders and server owners for the first two years.
AppWizard
November 5, 2025
Amazon's gaming strategy has shifted, leading to the decision to discontinue updates for the MMO New World, which will eventually be retired. New World achieved a peak of 913,634 concurrent players shortly after its launch in 2021, but player numbers declined by early 2022. The game secured an expansion in 2023 and is set to launch on consoles in 2024. Other tech companies have faced challenges in gaming, with Google retreating from its ambitions and Microsoft continuing to invest in its Game Pass service and releasing games on Steam. The gaming landscape has changed, with a focus on creating engaging experiences rather than solely pursuing profit. Concerns about studio closures and layoffs persist, highlighting the tension between creativity and financial expectations in the industry.
AppWizard
October 23, 2025
Microsoft has set a profit margin target of 30 percent for its Xbox division, which is higher than the industry standard of 17 to 22 percent. This directive has led to layoffs, project cancellations, and studio closures as the company shifts its focus to align resources with its strategic vision. An Xbox representative emphasized the need to balance creativity, innovation, and sustainability in their offerings.
AppWizard
October 5, 2025
A Bloomberg report indicates that Microsoft's Game Pass may be struggling, as the company estimates significant revenue loss from Call of Duty: Black Ops 6 due to its availability on the service. Game Pass lacks real-time performance metrics, unlike platforms such as Steam. Microsoft claims Game Pass is growing, but this is contradicted by recent layoffs and studio closures within Xbox. To offset the revenue loss from Black Ops 6, Game Pass would have needed around 15 million new Ultimate-tier subscribers for one month or 1.25 million over a year before any price increases. As of 2024, Game Pass had 34 million subscribers, a figure not updated this year. The subscription model's pricing structure is complex, and flagship titles like Black Ops 6 are expected to generate more revenue than the subscription model provides. Despite Black Ops 6 setting records for new Game Pass subscriptions, 82% of its sales occurred on PlayStation 5. Concerns about Game Pass's effectiveness in maximizing revenue for high-profile titles have arisen, alongside worries about the gaming industry's overall health due to studio closures and price hikes.
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