Summary
- Liquid Swords, a studio founded by Christofer Sundberg, has announced a round of layoffs.
- The gaming industry continues to reel from growth stagnation.
- NetEase Games has a minority stake in Liquid Swords.
Liquid Swords, a studio founded by Just Cause creator Christofer Sundberg, has announced a round of layoffs due to the “shifting market conditions” of the gaming industry (nice spot, PC Gamer). It’s a story we’ve read countless times since the beginning of the industry’s stagnation period in 2023.
Gaming is still in the midst of a turbulent post-pandemic period. Driven by COVID-19, the gaming industry saw massive growth during quarantine-filled years as consumers searched for ways to occupy their newfound free time. Unfortunately, this unprecedented growth drove hiring sprees and risky investments from which the industry is still currently reeling.
Layoffs and Downsizing
Liquid Swords, founded by Sundberg in 2020, is currently working on its debut title, described as a “narrative-driven, open-world hardboiled AAA revenge story, built and developed in Unreal Engine 5.” Sundberg is best known for founding Avalanche Studios, the developer of the Just Cause series. He departed the studio in 2019.
Sundberg provided a statement regarding the layoffs, saying “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. 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.”
One of Liquid Swords’ shareholders is NetEase Games, developer of the hugely popular hero shooter Marvel Rivals. NetEase acquired a minority stake in Liquid Swords in 2022, investing an unspecified sum in the studio. At the time, Liquid Swords expressed its desire to grow its team to 100 employees by 2023. Unfortunately, the studio has now undergone downsizing.
Despite the success of Marvel Rivals, NetEase Games recently announced layoffs of its own. A design team based in Seattle was laid off for “organisational reasons” and to “optimise developmental efficiency.”
NetEase Games
- Date Founded
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June 1, 1997
- CEO
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Ding Lei
- Parent Company
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NetEase, Inc.
- Headquarters
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Hangzhou, China