If this statement sounds like PR spin, it’s no accident. They didn’t want to say “layoffs” or “firings” outright.
The Spanish studio MercurySteam has initiated a process to reduce its workforce. Since its founding in 2002, MercurySteam has collaborated with renowned partners such as American McGee, Clive Barker, and Konami on the Castlevania franchise. Their most recent game, Blades of Fire, was released in 2025. However, due to the industry’s production cycle, downsizing became a necessary, albeit difficult and painful, decision.
“There is no easy way to share this kind of news, but today we must communicate that MercurySteam has initiated a workforce reduction process. While this is common within our industry’s production cycles, it is nonetheless difficult and painful. We want to express our deepest respect, gratitude, and support for those affected, whose talent, effort, and commitment have played an important role in the studio’s history. Over the coming weeks, we will focus all our efforts on handling this process with the utmost responsibility, humanity, and respect for everyone involved,” the statement reads.
The number of employees affected by the layoffs is not yet clear. The developer did not specify the reasons for the downsizing, though it is likely linked to the disappointing sales of Blades of Fire. The God of War-inspired action-adventure game underperformed in June, and Digital Bros, the company behind the 505 Games publishing label, announced in a press release that it expects an 8 million euro write-down, partly due to the game’s commercial struggles. Blades of Fire‘s status as an Epic Games Store exclusive on PC during a month when heavyweights like DOOM: The Dark Ages and Elden Ring: Nightmare were also released likely didn’t help the situation.
However, there is still a chance that Blades of Fire’s fortunes will improve. After a year of Epic exclusivity, the game has arrived on Steam with a significant 2.0 update. New features include New Game Plus, a new Titanium difficulty level that increases enemy stats and makes boss attacks more precise, an arena system that allows players to re-fight bosses after defeating them, and expanded death and dismemberment animations. Full Steam Deck support is also included.
Whether the update will resolve the issues plaguing the initial release remains to be seen, but we hope that with its Steam launch, MercurySteam’s latest game will turn the team’s fortunes around.
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