Splash Damage Enters Consultation Process Affecting All Staff as More Layoffs Loom

Splash Damage, the long standing British studio known for its work on major franchises including Gears Tactics, Halo The Master Chief Collection support and Brink, has announced that it has entered a studio wide consultation process that will impact all employees. The update arrives only two months after the company was acquired by an undisclosed private equity group, raising renewed concerns about the studio’s future.

In a statement shared on the company’s official LinkedIn page, Splash Damage confirmed that every role at the company is included in the consultation. While this does not guarantee that all staff will be laid off, the scope of the announcement means that the entire studio is at risk.

“Today we announced to our teams that we are entering a studio wide consultation process affecting all roles,” the statement reads. “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 are committed to exploring every option to retain talent and making sure those affected have meaningful support throughout.”

The announcement comes only weeks after Splash Damage quietly separated from its former parent company Tencent in September. Some observers believed the studio might thrive under new ownership outside the Tencent ecosystem. Instead, the consultation indicates a far more precarious situation. If the process concludes before year end, this would mark the studio’s second round of layoffs in 2025.

The studio’s recent output has been limited. Since 2020, Splash Damage has only released one internally developed title, Outcasters, which was tied to Google Stadia and ultimately shut down alongside the platform. The studio contributed support work for projects such as Star Wars Hunters and Gears Tactics but has struggled to bring a full new title to market. Its most recent major development effort, Transformers Reactivate, was cancelled earlier this year, resulting in layoffs in January 2025.

This latest development adds Splash Damage to the growing list of long standing studios facing significant challenges during one of the game industry’s toughest periods in recent memory. Founded over 20 years ago, Splash Damage has been an influential presence in the British development landscape and is known for its expertise in multiplayer design and co development support for triple A franchises.

If the consultation process ends with widespread layoffs or closure, it would mark yet another loss for an industry already struggling with widespread consolidation and financial instability.

Do you think private equity ownership can help veteran studios survive or does it create more instability during difficult market cycles