Phoenix Labs, Developer of Fae Farm, Reduces Workforce by Laying Off Majority of Staff

Phoenix Labs Faces Major Layoffs Amid Uncertain Future

In a recent LinkedIn announcement, Phoenix Labs, known for developing the games Fae Farm and Dauntless, has laid off the majority of its workforce. This decision follows a significant downsizing earlier in May 2024, where over 100 employees were let go and all projects were canceled to focus resources on these two titles. The exact number of staff remaining at the studio at the time of this latest announcement remains unclear.

“Today is another difficult day at Phoenix Labs. We have made the tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations.

We recognize and deeply appreciate the contributions of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games.

We will share more details in the coming weeks about what this means for Dauntless and Fae Farm. For now, our focus is on supporting those affected through this transition.

To our industry peers, we encourage you to reach out to these exceptional individuals – they are some of the best in the business.”

While the total number of layoffs has yet to be disclosed, the mention of Dauntless and Fae Farm in the statement raises concerns regarding the future of these titles. It hints at possible reduced support or even the potential decommissioning of Dauntless due to dwindling resources and revenue. However, this remains speculative, and updates could still be forthcoming.

The Context of Recent Changes

These layoffs come just two years after Phoenix Labs’ acquisition by blockchain company Forte Labs, a move that introduced a host of uncertainties within the studio. Internal challenges were compounded when employees were reportedly instructed to keep the acquisition confidential, forcing many to sign non-disclosure agreements.

Challenges Following Launch

Following the acquisition, Dauntless was launched on Steam, where it faced immediate backlash. Critics pointed to the intrusive in-app monetization strategies and the loss of prior player progress stemming from the controversial Awakening update. This backlash has resulted in Dauntless currently holding an “Overwhelmingly Negative”rating on Steam, highlighting the game’s struggles in retaining its player base.

A Look Back at Dauntless’ Success

Upon its release in 2019, Dauntless was a notable success, debuting on platforms such as the Epic Game Store, Xbox One, and PlayStation 4, with funding and publishing support from Epic Games. The game’s cross-platform play was initially a major draw for players, but with increasing prevalence of this feature in other titles, it has since lost some of its uniqueness.

Industry Trends and Repercussions

March 2023 has seen a wave of job cuts across the gaming industry, with notable companies like Ubisoft also announcing staff layoffs and studio closures. This trend suggests a challenging economic landscape for game developers that may persist in the months ahead.

As Phoenix Labs navigates this difficult period, further updates on the future of Dauntless and Fae Farm are anticipated, which will be critical in shaping the community’s outlook toward these games.

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