One of the first PS5-exclusive RPG developers has shut down for good. 2025 begins with three studios, including the creators of Godfall, ceasing operations within just two weeks.
While 2024 ended on a grim note for the gaming industry, the beginning of 2025 brought no signs of relief. Rocksteady Studios started the year with major layoffs affecting teams behind the Batman Arkham and Suicide Squad franchises. But the challenges didn’t stop there. Within just 13 days, three studios—Toadman Interactive, Freejam, and Counterplay Games—announced permanent closures.
Toadman Interactive, known for titles like Immortal: Unchained and Bloodsports TV, announced its closure following multiple failed attempts to achieve sustainable profitability. Its parent company, Enad Global 7, clarified that while certain external contracts would continue, all employees not involved in those agreements were immediately laid off.
Freejam, the studio behind Robocraft 2, also announced its closure this week. The studio shared on its Discord server that Robocraft 2, its predecessor, and the survival game CardLife would be removed from stores soon due to licensing issues.
Counterplay Games’ story is particularly poignant. Although not widely recognized, the 140-person team developed Godfall, one of the first PS5 exclusives released four years ago. The game, however, turned out to be a commercial failure, receiving mixed reviews and selling just 5,000 copies in Japan during its first week. In an effort to salvage sales, the game was later ported to PS4, Xbox One, and Xbox Series X|S, but it wasn’t enough to keep the Gearbox Publishing-owned studio afloat.
The situation worsened with Splash Damage’s announcement last week that it was canceling Transformers: Reactivate, revealed at the 2022 The Game Awards. The studio also announced layoffs, though exact figures were not disclosed. These developments paint a challenging picture for the gaming industry at the start of the new year.
Source: 3djuegos
