Devastating Layoffs Hit Striking Distance Studio Behind The Callisto Protocol

Striking Distance Studios Faces Additional Layoffs Amid Development Challenges

Recent reports reveal that Striking Distance Studios, the creative force behind The Callisto Protocol, has experienced another wave of layoffs, as confirmed by its parent company, Krafton. The news gained traction earlier today when Jesse Lee, the former Director of Concept Art, shared a post on LinkedIn, indicating, “most of the devs were laid off.”

Official Statement from Krafton

Later in the day, Krafton released a statement to PC Gamer confirming the layoffs but chose not to disclose the specific number affected. The organization stated that these workforce reductions were necessary to maintain a more agile development team:

“Striking Distance Studios has reduced the size of its team to remain agile, which creates a sustainable environment for the studio at its current stage of development. The studio remains operational, and these changes will not impact any planned ongoing support. No further changes are planned at this time, ”

— Krafton representative.

A History of Layoffs and Challenges

This recent event marks not the first instance of layoffs at Striking Distance. In August 2023, the studio faced significant downsizing, resulting in the loss of 32 jobs. The launch of The Callisto Protocol was met with mixed reviews, particularly due to performance issues such as stuttering during gameplay, especially noted on PC. Although the experience improved on console platforms, the game did not meet the high expectations set for it; it received a rating of 7.2 from critic Kai Tatsumoto.

The challenges deepened for Striking Distance when its co-founder, Glen Schofield, departed from the studio just a month after the layoffs were initially announced, further signaling instability within the company.

Post-Callisto Developments

Following the mixed reception of The Callisto Protocol, Striking Distance attempted to pivot by developing a top-down shooter. Unfortunately, this game also struggled, achieving only 169 peak concurrent players on Steam. Given that the budget for The Callisto Protocol exceeded $160 million, this performance undoubtedly represents a heavy financial blow for the studio.

Looking Forward: New Ventures on Unreal Engine 5

Despite the setbacks, there are indications that Striking Distance is shifting its focus toward new projects. Reports suggest the studio is actively working on an upcoming title utilizing Unreal Engine 5. According to the LinkedIn profile of the lead gameplay programmer, the team is currently composed of 12 gameplay engineers dedicated to this new venture.

The Layoff Trend in the Gaming Industry

The layoffs at Striking Distance reflect a broader trend this year where numerous gaming studios, large and small, have faced substantial workforce reductions. Most recently, teams from Marvel Rivals and Bossa Games have also seen significant layoffs, underlining the unpredictable nature of the industry.

As Striking Distance Studios navigates these turbulent waters, both the gaming community and industry observers will be watching closely to see how the studio adapts and evolves in response to these ongoing challenges.

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