Developers of Robocraft, Godfall, and Immortal: Unchained announce studio closures, layoffs at MechWarrior developer

Less than two weeks into 2025, Freejam, Toadman Interactive, and Counterplay Games have all reportedly shut their doors, with further layoffs taking place at MechWarrior studio Piranha Games.

The details:

• Freejam, the developer behind Robocraft, announced its closure in a message posted to the game’s Discord server last week. The studio stated that "current market conditions" and the costs of Robocraft 2's servers have prevented it from launching the full release of the game, with Freejam sunsetting its library of titles in the coming weeks, including Robocraft and CardLife.

• Following the announcement of Freejam's closure, Enad Global 7 has confirmed (via Eurogamer) that Toadman Interactive, best known as the developer of Immortal: Unchained and a support studio for Lord of the Rings Online, is closing. The parent company explained that despite cost-cutting measures, the subsidiary has failed to turn a profit and that its employees, except those involved in contracts with Cold Iron and Daybreak, will be laid off with immediate effect before the studio's full closure.

• Enad Global 7 also announced that Piranha Games, the developer of MechWarrior, has laid off 38 employees as a result of MechWarrior 5: Clans' poor commercial performance. "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," wrote 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."

• Lastly, Counterplay Games, the developer of Godfall, a PS5 launch exclusive, has reportedly shut down. As reported by PlayStation Lifestyle, an employee of project partner Jackalyptic Games revealed on LinkedIn that the game the two companies were working on had been canceled after Counterplay closed its doors last month. It is unclear how many employees have been affected, but the studio's LinkedIn page states that it employed between 11 and 50 people.

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