MercurySteam announces layoffs after the launch of Blades of Fire

Metroid Dread developer MercurySteam has announced layoffs at the company. The studio describes the move as a "workforce adjustment process." The news comes some time after the release of its latest title, Blades of Fire.

Development of Metroid Dread

MercurySteam worked with Nintendo on Metroid Dread, which launched in October 2021. The game was well received by critics and earned several Game of the Year nominations. Before Metroid Dread, the team released Metroid: Samus Returns in 2017 on Nintendo 3DS, which also drew plenty of praise.

Release of Blades of Fire

Following its successful collaboration with Nintendo on Metroid Dread, MercurySteam released its own IP, Blades of Fire, in 2025. The game was available on PS5, Xbox Series X/S, and PC, but not on Nintendo Switch. It was published by 505 Games. Despite expectations, the game proved less commercially successful, leading to "higher than expected write-downs," according to parent company Digital Bros.

Layoffs at MercurySteam

The layoff announcement casts a shadow over the company’s recent work. In a LinkedIn post, MercurySteam said this kind of restructuring is common in the video game industry between production phases. While it did not specify a number of affected employees, the studio stressed its commitment to helping them find new opportunities. It also shared an email address for employers looking to hire staff impacted by the layoffs.

The video game industry has seen a growing wave of layoffs in recent years, and MercurySteam is no exception. While the company appears to suggest there is no immediate threat to its survival, it remains unclear what impact these layoffs will have on future projects.