A short two months after it was acquired by an unnamed private equity group, veteran support studio Splash Damage has announced it has entered a consultation process that will impact all staff members. While all current staff could potentially be laid off, it's unclear at the time of this writing how many will be impacted.
"Today we announced to our teams that we are entering a studio-wide consultation process affecting all roles," a post on the studio's LinkedIn page began. "This was a difficult step for us to take, but we believe it is necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market. We know this kind of change is emotionally tough, and we will do what we can to guide our people through this process with honesty and care. We're committed to exploring every option to retain talent and making sure those affected have meaningful support throughout."
After quietly pulling away from its previous parent company in September, Tencent, though the studio's future was unclear, there was a bit of a sense that it could fare better away from Tencent than under it. Now, however, it's clear that's not the case, and if the consultation process wraps up before the end of the year, it'll be the studio's second layoff in 2025.
Since 2020, Splash Damage has only been able to ship one game, Outcasters, which launched and died with Google Stadia. It supported games like Star Wars Hunters and Gears Tactics, but has been unable to get a game over the finish line since Outcasters. Its last major project, Transformers: Reactivate, was cancelled, which led to the layoffs in January 2025.
It's unfortunate to see Splash Damage struggle like so many other studios, especially because if this does end with the studio essentially shutting down, it'll be the latest veteran studio to be killed off. Splash Damage has been around for 20 years now, and that kind of staying power isn't easy to obtain.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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