Layoffs Hit Mountaintop Studios After Disappointing Spectre Divide Launch Earlier this Month

Image Credit: Mountaintop Studios

Mountaintop Studios has announced that they are laying off 13 of their staff after the launch of highly anticipated game Spectre Divide earlier this month failed to meet expectations, with the number of players having dwindled by more than 2/3rds thus far already, now struggling to reach 6k at peak hours. It is worth noting that, according to LinkedIn, they are stated to have somewhere between 11-50 staff in total.

Critics of the game have pointed to a variety of issues, including gameplay mechanics, graphics, lack of engaging content, and predatory microtransaction prices, which have reportedly contributed to the game’s struggles. As many players move on from the game, the studio is attempting to deal with the reality of a shrinking playerbase and potential financial instability.

The decision to lay off staff only a mere 3 weeks after a major launch is particularly concerning (although obviously it is not quite as bad as it was with Concord), as it reflects deeper challenges within the studio despite having the backing of popular streamer Shroud, among others. Mountaintop Studios, which was founded with the vision of creating immersive multiplayer experiences, now faces the harsh realities of a competitive gaming market where player engagement is crucial for success and, to some, it looks like they went all-in on attempting to price-gouge players rather than focusing on simply making a fun game.

Unfortunately, the recent layoffs at Mountaintop Studios are not an isolated incident in the gaming industry; 2024 has seen a troubling trend of workforce reductions across several prominent companies, not confined to the gaming sector. As the market adjusts to post-pandemic realities, massive inflation, and therefore changing consumer preferences, many studios have been forced to reevaluate their operations.

Earlier this year, Activision Blizzard made headlines when it laid off hundreds of employees as part of a restructuring plan aimed at streamlining operations. Despite the company’s success with blockbuster franchises like Call of Duty, a new World of Warcraft expansion, and more, the layoffs raised concerns about the impact of rising development costs and the need for continuous innovation, or, on the other hand, corporate greed and the need for even more profit gains above all else.

Similarly, Riot Games, known for its immensely popular titles League of Legends and Valorant, also announced layoffs as part of a broader effort to focus on key projects and improve overall efficiency. This decision came as the company faced increasing competition in the competitive multiplayer market, as they recently announced significant price increases to regions around the world, including a 76% price increase for their Ukranian playerbase.

In another notable move, Epic Games reduced its workforce as it sought to cut costs amid a challenging economic environment where families generally have less disposable income. While the company remains a leader in the gaming industry and Fortnite is still an absolute powerhouse, these layoffs have highlighted the necessity for even established studios to make tough decisions in response to the current market, whether one agrees with the decisions or not.

While it remains to be seen how Mountaintop studios will handle the future of Spectre Divide, the immediate focus is likely to be on evaluating its resources and simply figuring out what to do now.

Below you can read a statement from Nate Mitchell, CEO and Cofounder of Mountaintop Studios on the topic of the layoffs that have been made:

"To make sure we're set up to support Spectre and its community for the long term, we made the very difficult decision to reduce 13 full-time roles at the studio. We can't thank these team members enough for their hard work and dedication to Spectre these past few years." - Nate Mitchell, CEO and Cofounder of Mountaintop Studios