Breaking News: Cryptic Studios Confirms Layoffs Amid Ongoing Restructuring by Embracer Group
In a year of relentless challenges for the gaming industry, Cryptic Studios, known for popular MMOs such as Star Trek Online and Dungeons & Dragons MMORPG Neverwinter, has become the latest victim of cutbacks. This comes as a result of the ongoing “comprehensive restructuring” of its parent company, Embracer Group. The unfortunate personnel changes indicate the toll the industry’s tumultuous year has taken on game developers.
Reports of Layoffs Rattle MMO Community
The first whispers of layoffs at Cryptic Studios emerged in October after key members of the development team, including narrative director Winter Mullenix, senior game designer Jesse Heinig, senior technical artist Chris Penny, and community manager Mike Fatum, updated their social media profiles to reflect their job hunt. Mullenix’s post specifically mentioned the layoffs were due to a reduction in the workforce.
GamesIndustry.biz has since confirmed that an undisclosed number of Cryptic Studio’s 100-plus employees have indeed lost their jobs. In a statement, the company expressed its commitment to Embracer’s directive to reduce costs, which requires difficult personnel changes and separating from some team members.
Powerful Developers Among Those Affected
The impact is not limited to lesser-known individuals, as some prominent figures within Cryptic Studios’ hierarchy have also been caught in the layoffs. Vice President of Game Development, Andre Emerson, is among those affected, as well as sound designer Nigel Athanasios Wilson, producer Miles Deponty, senior environment artist Patrick Poage, senior concept artists Kelly Perry and Ahmed Rawi, and senior UI/UX designer Jules Norcross.
New Horizons for Cryptic Studios
Following the restructuring, Cryptic Studios will now operate under the banner of free-to-play publisher-developer DECA Games. This alignment will place Cryptic’s games alongside other DECA Games’ titles, including MMO shooter Realm of the Mad God and popular mobile games such as DragonVale, Crime City, and Kingdom Age.
In these challenging times, Cryptic Studios remains committed to supporting its cornerstone free-to-play games and the passionate communities built around them. The studio’s spokesperson stated that they will provide job assistance and support to those impacted by the layoffs to help ease their transition into new career opportunities.
Embracer Group’s Turbulent Year
Embracer Group’s restructuring endeavors have had wide-ranging consequences throughout the industry. In an announcement over the summer, the company revealed it would be canceling upcoming games, closing studios, and implementing layoff measures across its extensive workforce of over 16,500 employees. This decision followed years of acquiring numerous studios, resulting in more than 130 under the Embracer banner as of June. They also secured licenses for iconic franchises, such as The Lord of the Rings’ Middle-earth and popular titles like Borderlands, Tomb Raider, TimeSplitters, and Alone in the Dark. Cryptic Studios itself joined the Embracer family as part of the Perfect World Entertainment buyout in late 2021.
A Raging Storm of Layoffs Across the Industry
The impact of the Embracer-induced layoffs extends beyond Cryptic Studios to a sector already ravaged by job cuts. Prominent studios like Beamdog, the developers of Baldur’s Gate Enhanced; Crystal Dynamics, behind the Tomb Raider series; Gearbox, known for their work on Borderlands; and Zen Studios, creators of Pinball FX, have all faced layoffs and closures. Notably, revered developers Volition, the team behind the Saints Row franchise, and Campfire Cabal, a studio founded by former Hitman and Hunt: Showdown developers, closed their doors entirely.
The state of the game development industry in 2023 is nothing short of a disaster, with layoffs impacting major players like Epic, Bungie, PlayStation, and Microsoft, as well as revered studios such as Frontier, BioWare, Creative Assembly, and CD Projekt Red.