Developer Reflector announced layoffs after it confirmed that "Unknown 9: Awakening" was a failure, resulting in the cancellation of an unannounced project.
So far, it is not yet clear just how many people are actually affected by the redundancies but they would apparently include back-to-office staff.
The decision was made in order to "bring support teams in line with the single project approach the studio will adopt for the imminent future."
Reflector Announces Layoffs
It was also revealed that employees who will be made redundant will be given "adequate" severance packages as well as extended health care for themselves and their families. The studio also plans to provide counseling and "proactive career planning support."
Reflector CEO Herve Hoerdt added that proceeding with the project, which was in the "conceptualization phase," would not have been sustainable for the studio moving forward.
The developer, which is a Bandai Namco studio, noted that the decision directly correlates with the failure of its first project and new IP, according to Games Industry.
It noted that the performance of "Unknown 9: Awakening" did not even come close to aligning with the studio's expectations. This was despite Reflector's numerous timeline adjustments and investments into the project.
Hoerdt added that the situation meant that the follow-up project for the game did not warrant any further exploration. The studio CEO added that where possible, colleagues who are affected by the redundancies will be reassigned to a different unannounced project.
Unknown 9: Awakening Fails To Meet Expectations
The studio's first project, "Unknown 9: Awakening," was originally released on Oct. 17, 2024, for PC, PlayStation 5, and Xbox Series X/S. However, the game opened to mixed reviews despite being planned to be part of a larger content universe, Game Spot said.
The action-adventure game's story focuses on a young woman from India whose name is Haroona who is trying to master her powers. The latest layoffs at Reflector does not mean that the studio is about to shut down, which is not the case with other companies.
The studio previously said that it wanted to build a new universe by creating a vast "storyworld" across different mediums. The latest development also comes in contrast to Reflector's previous round of layoffs, which happened last year.
At the time, the company made 18% of its workforce redundant, which it said was not linked to "commercial success or external pressures."
On the other hand, parent company Bandai Namco said that it will continue investing in "Western content for global audiences," according to Game Developer.