Only one word comes to mind when describing the team’s last two months: turbulent.
Two months after being acquired by an anonymous group of private equity investors, veteran support studio Splash Damage announced it had begun a consultation process affecting all employees. Although all current employees may be laid off, it is unclear how many will be affected by the downsizing.
“Today, we informed our teams that we are initiating a studio-wide consultation process that will affect all roles. This was a difficult step for us to take, but we believe it is necessary for Splash Damage to remain agile and adaptable in this challenging market. We know this kind of change is emotionally tough, and we will do what we can to guide our people through this process with honesty and care. We’re committed to exploring every option to retain talent and ensuring those affected have meaningful support throughout,” read a post on the studio’s LinkedIn page.
After quietly breaking away from its former parent company, China’s Tencent, in September, the studio’s future was uncertain. However, there was a sense that it could fare better independently than under Tencent’s umbrella. Now, however, it is clear that this is not the case. If the consultation process is completed before the end of the year, it will mark the studio’s second downsizing in 2025. Incidentally, the team has only released one game since 2020: Outcasters, which was lost along with Google Stadia. The team also supported the development of Star Wars: Hunters and Gears Tactics. Its last major project, Transformers: Reactivate, was canceled, leading to layoffs in January.
Unfortunately, Splash Damage is struggling like so many other studios. If this studio closes down, it will be the latest veteran studio to liquidate. Splash Damage has been around for 20 years—an achievement few teams in the gaming industry can boast.
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