Just months after the release of fighting game Invincible VS, Skybound Entertainment-owned development studio Quarter Up is facing massive layoffs. According to multiple reports from former employees and inside sources, the studio had to lay off most of its team members. The wave of layoffs was caused by a serious failure to meet business expectations. Since the financial budget was simply not enough to maintain the original team size, management had to take drastic personnel measures.
The cuts at the studio are reportedly huge. Affected employees estimate that approximately 75% of employees have been laid off. This equates to about 35 employees out of the original development team of about 50 people.
The layoffs came in two waves over the summer, with the first announced in June and much of the rest of the team having to follow in July. For the remaining tasks, the studio was reduced to an absolute skeleton crew.
The purpose of this skeleton team is to keep the game running and complete work on the first planned expansion, which includes the introduction of new characters Universa and The Immortal into the game. Due to the current staff situation, it is extremely uncertain whether there will be more fighting game content after the first DLC pack.
Skybound Games and Quarter Up management have yet to comment publicly on the layoffs. However, industry insiders said that after the first batch of additional content is completed, it will need to be reorganized to determine the future development direction of the studio and brand. This development once again demonstrates the intense pressure that small studios face to succeed in the fiercely competitive multiplayer gaming market.
