A difficult but crucial restructuring is underway at Sharkmob, a Tencent-owned studio, with an unknown number of jobs potentially at risk. This news comes amidst a series of cutbacks and closures across the gaming industry, leaving many wondering about the future of game development.
Sharkmob's Malmo studio, currently developing the sci-fi shooter Exoborne, is facing planned job losses. The London studio met a similar fate in 2024, with local staff redundancies following the cancellation of an undisclosed project.
In a statement, Sharkmob acknowledged the "challenging environment" for game developers, describing the restructuring as "difficult but necessary steps" to "sharpen our focus" on Exoborne's development and ensure "sustainable growth."
Exoborne, Sharkmob's second release, recently completed its second public playtest in October, but a release date remains unknown.
The company has remained tight-lipped about the specifics, citing an ongoing employee consultation process. Under Swedish employment law, proposed redundancies must undergo internal consultation and negotiation with union representatives, and affected staff are bound by confidentiality.
Sharkmob's parent company, Tencent, has also been making moves. Last month, they laid off staff at their Funcom studio following the successful launch of Dune: Awakening. As part of that restructuring, The Outsiders, the studio behind Metal: Hellsinger, was closed.
In September, Tencent VP Yong-yi Zhu assured GamesIndustry.biz that Tencent had "no plans to pull out" of the Western market, but acknowledged a potential "reduction in investment" in certain areas, citing industry dynamics. Tencent has invested heavily in Western studios in recent years, acquiring Sumo Digital and taking a minority stake in Fatshark.
This news follows a wave of cutbacks at NetEase, another Chinese publisher, resulting in the closure of several studios it founded or funded, including Fantastic Pixel Castle, T-Minus Zero Studios, and Bad Brain Games.
And here's where it gets controversial: with these industry giants making significant changes, what does the future hold for game development? Will we see a shift in the industry landscape, and what impact will these moves have on the games we love? These are questions worth pondering, and we'd love to hear your thoughts in the comments below.
Related Topics:
- Game Development
- Industry Restructuring
- Tencent's Western Investments
- Studio Closures and Layoffs
