Sweden-based developer Liquid Swords has today announced an unspecified number of layoffs.
The NetEase-backed studio was formed in 2020 by Christofer Sundberg, whose name you may recognise from Just Cause’s Avalanche Studios, which he co-founded.
Liquid Swords is yet to launch its first game, and today announced plans to “reduce its workforce as part of an effort to scale back operations and adapt to current business conditions”.
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In a message on the company’s website, Liquid Swords cited “the present challenges of the video game industry” as a reason for the layoffs. It said this move is “intended to ensure the studio’s long-term sustainability” as it continues to work on its debut game.
“I promised our employees and shareholders success and to build a studio redefining game development with a small, expert-driven team and a sustainable work model. While we achieved much of this, shifting market conditions prevented us from succeeding within our timeframe,” Sundberg said in a statement.
“As a result, we must part ways with talented individuals who have been instrumental in our journey. This is incredibly difficult, but we remain committed to our vision and will continue to work on our IP and first game with a dedicated team.”
Despite changes within its team, Liquid Swords believes these layoffs “will not prevent” the studio from “realising its original ambition”.
Liquid Swords is not the only NetEase-backed studio to have been impacted recently. In November, Mac Walters – the veteran writer and producer who worked on Mass Effect for almost two decades – announced a “pause” in operations at his NetEase-backed AAA game studio, Worlds Untold. Its team had been developing a near-future action adventure game set “in a breathtaking world filled with mystery and exploration”, backed by investment cash from the Chinese game giant.
Then, last month, Jar of Sparks – the Seattle-based “AAA” studio established by Halo Infinite head of design Jerry Hook back in 2022 – halted work its currently-unannounced first title as it searched for a new publishing partner, stating it’s looking to “find all of our team new homes” as a result.
When Jar of Sparks was initially unveiled in July 2022, it was described as a first-party developer for Chinese publisher NetEase that would focus on creating the “next generation of narrative-driven action games”.
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