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Digital Bros, the owner of 505 Games, has revealed plans to cut its global workforce by 30%, “with the predominant portion concentrated within the studios”. The company made its plans public on Tuesday, November 14 saying it was part of an “organizational review” across its development studios and publishing units.

The decision will affect UK-based developer DR Studios and Italian studio Kunos Simulazioni. Digital Bros also has offices in Australia, Canada, China, France, Germany, Japan, Spain, and the United States. The company confirmed that these layoffs will have “no significant impact” on its financials for the 2023 – 2024 fiscal year.

According to Digital Bros, the pandemic has sort of reset the video game market with players now yearning for “established Intellectual Properties”. In a press release, the company noted that players are now spending more time playing old IPs which has necessitated their organizational review.

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“Digital Bros strategy has had to adapt to this new and evolving competitive scenario and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions,” the company said in a press release.

The statement by the company may mean that their recent games may not have hit their expected sales targets. Some of the games that have been released by 505 Games this year include Miasma Chronicles, Crime Boss: Rockay City, and Ghostrunner II.

“In order to prioritize high-quality and long-standing successful titles, Digital Bros has reconsidered the number of projects under development and as such, will review the organization structure accordingly to align with the evolving competitive environment in the medium to long-term to ensure maximum operational efficiency.”

Digital Bros press release

Although the press release hinted that some of the projects under development have been “reconsidered”, there was no specific mention of the projects. Also, the press release did not expressly mention if Digital Bross will shut down any studio. Some of the games currently lined up in 505’s publishing future include Control 2 and Eiyuden Chronicles: Hundred Heroes.

Digital Bros’ 505 Games enters into an agreement for Ghostrunner II post-launch support

Back in July, 505 Games entered into an agreement with One More Level, the developer of Ghostrunner II, to support the game for 12 months after its global launch. The agreement will see the studio actively develop the game including its paid and free add-ons.

“We know how much potential there is in Ghostrunner 2, which is why we are extremely excited about the decision to expand our cooperation with 505 Games,” said Szymon Bryla, head of One More Level studio in a press release.

“We are glad that the publisher recognizes the capabilities of our team and the project to which we have devoted our hearts in recent years. Additional post-launch support funds will be used to create unique gameplay and cosmetic content—both paid and free—so players will be able to enjoy Ghostrunner 2 even longer.”

Szymon Bryla, head of One More Level studio

At that time, it was revealed that 505 Games had allocated €0.59 million ($640,000) for the post-launch development of Ghostrunner II. The game was launched globally on October 26, 2023, on PC via Steam, PS5, and Xbox Series X|S.

It is unclear if Digital Bros’ organizational review will impact that deal. Perhaps, we have to wait to find out in the coming months. Layoffs in the video game industry have been rife in recent months. In just a week, Amazon, Digital Extremes, Unity, and Ubisoft all announced job cuts. As of October, 6,000 jobs have been lost in the industry.

Do you think Digital Bros’ organizational review will affect the development of Control 2? Share your thoughts in the comment box below.

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