Three Studios Have Already Shut Down In 2025, Including Godfall Developer

Three video game developers have already closed their doors this month, including the studio behind Godfall, Counterplay Games.

Spotted by PlayStation Lifestyle, a developer from Jackalyptic stated that the studio was working with Counterplay Games on a project together. However, the partnership couldn’t continue into 2025 due to Counterplay Games closing down.

Toadman Interactive was also shut down on January 9. The studio worked as support for games such as the Warhammer Vermintide series. Its parent company, Enad Global 7, said in a press release that the studio was unable to secure new work-for-hire contracts at a “necessary pace.”

Robocraft 2 developer FreeJam closed on the same day, with the studio posting a message to its Discord, saying, “We’re simply unable to launch or sustain development. In the coming weeks, both Robocraft titles and CardLife will be sunset. RoboCraft 2 has already been delisted on Steam, while at time of writing, the original game and CardLife are still available on the platform.”

Godfall was the most recent release from Counterplay Games, and it initially launched as a PlayStation 5 and Epic Game Store exclusive before going over to Steam, Xbox, and even PlayStation 4 after a period of time.

The video game industry has suffered through layoffs and studio closures over the past few years, and it doesn’t seem to be slowing down any time soon as 2025 continues on.