In a surprising twist, Splash Damage, a well-known support studio in the gaming industry, has entered a consultation process affecting all its staff members. This announcement comes just two months after the studio’s acquisition by a private equity group. Although the full extent of the layoffs remains uncertain, the decision signifies a challenging period for the company.
Company-Wide Consultation Process Begins
Splash Damage recently communicated to its employees that the studio is undergoing a consultation process impacting every role. According to a post on the studio’s LinkedIn page, the decision was not made lightly but is deemed necessary to help the studio remain flexible and adaptable in a tough market. The company expressed its commitment to supporting affected employees with sincerity and care, exploring every possible option to retain talent.
Background and Current Challenges
After separating from its former parent company, Tencent, in September, there was hope that Splash Damage might thrive independently. However, the current situation indicates otherwise. As the consultation process might conclude before the year ends, this would mark the studio’s second round of layoffs in 2025. The studio’s struggle to successfully launch new games, including the cancellation of Transformers: Reactivate, has contributed to these difficulties. Despite releasing Outcasters in 2020 and supporting titles like Star Wars Hunters and Gears Tactics, Splash Damage has not been able to complete a new game since.
A Legacy at Risk
The fate of Splash Damage is uncertain, and its struggles reflect the broader challenges faced by many studios in the industry. With a history spanning two decades, the potential closure of Splash Damage would mark the end of an era for a veteran studio known for its resilience and contributions to gaming.
