Counterplay Games, known for creating Godfall, has reportedly become the latest studio to close amid a wave of shutdowns sweeping through the gaming sector. They now join Freejam, famous for Robocraft, and Toadman Interactive, known for their game Immortal: Unchained, marking a troubling trend of ongoing closures in the gaming industry for 2025.
Closure Confirmation
This information comes from PlayStation Lifestyle, which confirmed the details through an anonymous LinkedIn message from an employee at Jackalyptic Games, a part of the Chinese company NetEase. The message indicates that Counterplay Games has been “disbanded,” sharing some LinkedIn profiles of those who were impacted. The studio’s only significant release was Godfall, launched exclusively for the PS5. Upon release, this third-person looter shooter received mixed reviews from critics.
Other Studios Affected
Alongside Counterplay Games, Freejam Games, the developers behind Robocraft and CardLife, has also ceased operations. They decided to cancel the development of Robocraft 2 and shut down CardLife due to “the current market conditions and the server costs required” to continue development being unfeasible. This shutdown was announced via a message on Discord (as reported by TechRaptor).
Industry Impact
Enad Global 7 (EG7), the parent company overseeing Toadman Interactive, shared in a press release that it would be “winding down operations in Toadman.” Toadman Interactive’s last significant release was the co-op shooter Evil V Evil, which came out in 2024. They also developed Immortal Unchained and played a role in the creation of games like Warhammer: Vermintide 2, Killing Floor, and Dead Island.
According to market research from Statista, over 11,250 professionals in the gaming industry lost their jobs in 2023, with that figure rising to 13,000 in 2024. If the early signs of 2025 are any indication, this troubling trend seems set to persist.
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