SteamWorld makers announce 100 layoffs, cancel projects, and say they’ll publish more games by other studios – but fewer of their own

Thunderful Games, the creators of the popular SteamWorld series, have announced significant layoffs within the company, resulting in the loss of jobs for approximately 80-100 employees. This restructuring also includes the cancellation of several game projects, as stated in a press release issued by the company. In a surprising move, Thunderful Games plans to shift their focus towards publishing games from external developers rather than developing their own.

CEO Martin Walfisz expressed his regret over letting go of 80-100 employees as part of the strategic shift towards external publishing. The company aims to reduce fixed costs and increase flexibility by leveraging external talent for game development while maintaining some internal capacity.

Despite experiencing layoffs earlier in the year, Thunderful Games continues to face challenges with revenue targets and negative cash flow. The company attributes this financial struggle to over-investment in recent years, leading to the sale of distribution companies in an effort to stabilize finances.

As for the future of the SteamWorld series, it remains uncertain how these changes will impact upcoming projects. While the company plans to retain some internal development capacity, the focus may shift towards the steampunk robot world of SteamWorld. Other projects from studios now under Thunderful Development, such as Lost In Random and The Gunk, may be affected by the restructuring.

Given the industry trend of risk-averse decisions by major game companies, it is possible that non-SteamWorld projects will be prioritized for cancellation. Further details on the impacted projects are yet to be disclosed by Thunderful Games.