Developer Counterplay Games reportedly shut down after some fans saw on LinkedIn that the studio had disbanded after a supposed partnership with Jackalyptic fell through.
The company has not yet officially confirmed the rumors that have spread since the post was spotted on LinkedIn. The statement noted that over the past six months, Jackalyptic's project has been supercharged by the world-class devs at Counterplay Games.
Counterplay Games Shuts Down
It added that it was impossible for them to overstate the developers' impact on their projects and work in general. It said that from the very first day, the studio's workers have put their shoulders to the wheels like it was their own child.
However, the post noted that while unfortunate, Jackalyptic has been unable to continue its partnership with Counterplay Games into the new year. It added that the latter has since been disbanded.
After it concluded the announcement, the company shared profiles of the people who have been impacted by the changes. It has since been edited to erase the mention of the closure itself, according to Games Industry.
So far, there is no information just exactly how many individuals have been impacted by the closure of Counterplay Games. The studio's sole published game is "Godfall," which was originally developed in collaboration with Disruptive Games as a PlayStation 5 launch title.
However, the game, despite backing and support from Gearbox, released to middling critic and player reviews. It seems like the waves of job cuts that plagued 2024 are continuing to make splashes in 2025.
Godfall's Disappointing Release
"Godfall" was originally released in November 2020 for PC and PlayStation 5, the PlayStation 4 in August 2021, and for Xbox Series X/S and Xbox One in April 2022, VGChartz said.
Other studios that have been closed recently include Toadman Interactive and Freeja, which are known for "Immortal: Unchained" and "Robocraft," respectively. Counterplay Games' "Godfall" was said to have a satisfying combat system but not much else to offer.
Many players argued that the game suffered from an inconsequential loot system, recycled environments, and a frustrating mission structure. They claimed that these factors stopped them from engaging even further with the title, according to Push Square.
The closures of Freejam and Toadman Interactive, the latter of which resulted in a total of 69 job losses and 38 layoffs at Piranha Games.
In just the first two weeks of this year, more than 150 developers have already been laid off, including people from Splash Damage and Jar of Sparks.