Gaming industry: Three studios shut down in 2025.

Gaming Industry Shakeup: Three Studio Closures in 2025

The start of 2025 has seen a wave of studio closures and layoffs in the gaming industry. Three notable studios have shut their doors.

Studios Affected

Toadman Interactive, known for titles like Immortal: Unchained and Bloodsports TV, closed after attempts to improve profitability failed. Parent company Enad Global 7 stated that ongoing work-for-hire contracts would be protected, but other employees would be affected.

Freejam, the developer of Robocraft 2 and CardLife, also ceased operations, announcing the sunsetting of its games in the coming weeks.

Counterplay Games, the studio behind Godfall, was disbanded after a partnership ended, according to a LinkedIn post by Jackalyptic Games.

In addition to these closures, Enad Global 7 laid off 38 employees at its Piranha Games studio due to the underperformance of the latest MechWarrior game. Other companies, including Splash Damage and Rocksteady, also experienced layoffs.

This difficult period highlights the challenges facing the video game industry.