studio closures Archives

AppWizard

May 22, 2026

Fallout lead Tim Cain argues games industry crisis hasn’t reached the level of the 1983 crash: ‘I don’t think there’s ever been a worse time in the games industry’

Tim Cain, a veteran RPG developer, discussed the challenges in the current video game industry, noting that approximately 10% of game developers are affected by layoffs and studio closures. He emphasized that while the situation is serious, it does not compare to the catastrophic crash of 1983, during which many developers were abruptly unemployed and the U.S. video game market collapsed. Cain reflected on the lasting impact of that crash, stating it resulted in the loss of an entire generation of game developers and took nearly a decade for the PC market to recover. He identified contemporary issues such as an oversaturation of games, a devaluation of games due to subscription services, and an uneven crisis that largely bypasses consumers. In contrast, industry veterans John and Brenda Romero expressed a more pessimistic view, feeling that the current crisis seems more severe than the earlier collapse.

AppWizard

May 13, 2026

Sega has canceled its live service ‘Super Game’ due to ‘intensifying market competition,’ and I really, really hope it’s a sign that the industry is finally correcting itself

Sega has canceled its "Super Game" project, originally intended to redefine gaming by March 2026, and is redirecting around 100 developers to create traditional "Full Games" that require upfront payment. This decision reflects a reevaluation of the company's priorities in light of competitive market dynamics and the challenges posed by established titles. Sega aims to focus on nurturing existing franchises like Sonic, Crazy Taxi, and Jet Set Radio, avoiding layoffs or studio closures. The gaming industry is experiencing a shift towards a preference for quality single-player titles over live service models, as seen with other companies like Capcom and NetEase.

AppWizard

March 28, 2026

Soren Johnson on keeping his game studio small: ‘You get better games if you take longer to make games’

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

Call of Duty veteran’s new studio, which was just announced in 2025, is reportedly being closed by Sony

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.

BetaBeacon

January 26, 2026

Ubisoft’s game cancellation announcement leads to sinking share prices

Ubisoft shares have fallen by as much as 35% after the cancellation of six upcoming games and the restructuring of the company, which includes layoffs and the closure of two studios.

BetaBeacon

January 26, 2026

‘We’re going to let VR be what it is and what it does great,’ says Meta execs regarding Quest changes

Meta is shifting its focus from first-party development to third-party games for Meta Quest headsets, with Horizon Worlds taking a mobile-only approach. Oculus Founder Luckey Palmer refuted claims that Meta is abandoning VR.

AppWizard

January 2, 2026

The most important PC gaming news stories in 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

‘We actually didn’t attribute any value’ to Warner’s game studios, Netflix boss says about the acquisition deal: ‘They’re relatively minor compared to the grand scheme of things’

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

Rescued “Minecraft challenger” Hytale finally shows off gameplay, and it has the building blocks of something great

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

The tech industry came for Steam and whiffed so hard that it’s had to admit that it didn’t even really like making games in the first place

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.