505 Games, a prominent video game publisher, has made the decision to close its offices in Germany, Spain, and France as part of a restructuring effort in the games industry.
Although the closure of these offices may come as a surprise to some, 505 Games stated to Eurogamer that this move was actually part of their original announcement made in November regarding a business review.
In their announcement last year, the company also mentioned plans to lay off 30% of its workforce. This decision was influenced by the evolving video game market, which has become more selective due to the pandemic. Consumers are now gravitating towards established IPs and spending more time on these familiar games.
Amidst layoffs, there are acquisitions:
Remedy Entertainment recently acquired the full rights to the Control franchise from 505 Games for €17 million (~$18,300,000). This exciting development is significant news for fans of the popular game.
With this acquisition, Remedy will now independently develop and publish the Control sequel and any future projects related to the franchise. This shift also means that Remedy has complete creative control over the direction of Control 2 and other titles associated with the franchise, without the involvement of 505 Games.
Over the past year, the video game industry has seen a wave of restructuring and layoffs. In just the first two months of 2024, over 8,100 individuals have been impacted by job cuts. We have compiled a comprehensive roundup of all the layoffs that have occurred in 2024 thus far.
This trend has affected various companies and studios, from major players like Sony’s PlayStation division to smaller independent developers.
