More proof that a single flop can destroy a studio as Alone In The Dark dev shut down-Adam Starkey-Entertainment – Metro

The search for infinite growth goes on (THQ Nordic)

Just three months after it launched Alone In The Dark, developer Pieces Interactive has announced it’s closing its doors as the industry’s cutthroat layoffs continue.

If Microsoft’s decision to shut down Tango Gameworks proved anything, it’s that no studio is safe from the chopping block in the current climate.

As development costs rise and companies scramble to ensure ‘growth’ in the wake of the pandemic, the games industry has been subject to widespread layoffs over the past two years, with over 10,000 already having lost their jobs.

Now, Embracer Group has shut down Swedish studio Pieces Interactive after 17 years, just three months after it launched the reboot of Alone In The Dark.

After going on an ill-advised shopping spree of developers, Embracer has already shut down Saints Row developer Volition and TimeSplitters’ Free Radical Design, amongst others, as part of its ‘restructuring programme’ following the collapse of a $2 billion investment deal.

Pieces Interactive confirmed the closure on Monday in a post recapping the studio’s history, which says: ‘Thanks for playing with us.’ The studio released over 10 games, including Magicka 2, Leviathan Warships, and Puzzlegeddon, before they were acquired by Embracer Group, under THQ Nordic, in 2017.

‘Out last release was the reimagining of Alone In The Dark,’ it concludes.

Last month, Embracer Group stated, in a financial report, that Alone In The Dark had ‘performed below management expectations’. This was after reports of layoffs at the studio back in April, a month after it launched.

It’s another example of how studios, in the current climate, are often only one flop away from being shut down entirely. We’ve already seen this concern hang over Rocksteady, following the failure of Suicide Squad: Kill The Justice League, even though that studio is apparently safe.

Pieces Interactive’s closure is likely not just due to the failure of Alone In The Dark but the fact that the studio now has no imminent game for release, making it an easy target for closure at a company that is looking to cut costs.

Given how long it takes to make a modern video game they wouldn’t be able to make any substantial contribution to their parent company’s bottom line for several years, which is a danger for all other developers in the current climate.

Embracer Group’s ‘restructuring’ has led the company to sell off Borderlands creator Gearbox and Saber Interactive in a bid to recover costs. In April, Embracer also outlined plans to split into three separate companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

The closure of Pieces Interactive signals a bleak outcome if any of Embracer’s future projects fall below expectations. The company’s future slate includes Kingdom Come: Deliverance 2, Disney’s Epic Mickey: Rebrushed, and Killing Floor 3.

Alone In The Dark is a reboot of the classic series (THQ Nordic)

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