After being acquired by unknown private equity investors, Gears Tactics developer Splash Damage puts entire studio at risk of redundancy

After being acquired by unknown private equity investors, Gears Tactics developer Splash Damage puts entire studio at risk of redundancy

UK studio Splash Damage has entered a studio-wide consultation process ahead of extensive redundancies.

The studio has suffered difficulties this year after the cancellation of its Transformers: Reactivate project back in January, which left roles “at risk of redundancy”. Then, in September, it was acquired by unnamed private equity investors (thanks GamesIndustry.biz). Previously it was owned by Tencent, which acquired the studio back in 2020.

Staff were notified of redundancies yesterday, and a public statement was shared on LinkedIn. “This was a difficult step for us to take, but we believe it is necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market,” it reads.

TRANSFORMERS: REACTIVATE Official Announce Trailer | The Game AwardsWatch on YouTube

“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 making sure those affected have meaningful support throughout.”

The last game shipped by the studio was Outcasters, a shooter exclusive to Google’s now-defunct Stadia.

Before that it worked on Gears of War and Halo games for Microsoft in a support capacity.

In 2023, Splash Damage announced its “AAA open-world survival game” Project Astrid, but no further details were ever shared.

News of these layoffs follows a “restructuring plan” at Square Enix and the allegedly unfair dismissal of staff from GTA developer Rockstar Games, both hugely impacting the UK games industry.

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