Supermassive Games layoffs: impact on future horror games and the industry

In brief

• Supermassive Games has announced that up to 75 employees will lose their jobs.
• This is the studio’s third round of layoffs in two years, for the team known for its cinematic horror games.
• The studio recently took over the Little Nightmares series from Tarsier Studios, but the reception to its latest title was mixed.

GAME-scanner analysis

The recent announcement of layoffs at Supermassive Games is a worrying sign of the studio’s current state. With up to 75 employees losing their jobs, the studio’s staffing capacity is being significantly reduced. This is the third time in two years that the studio has been forced to cut staff, pointing to ongoing financial issues or a lack of successful product development. Earlier layoffs in July 2025 and the restructuring in February 2024, which may have put 150 employees at risk, only deepen those concerns. The studio, known for titles such as Until Dawn and The Quarry, has struggled to meet high expectations, especially after the mixed reception to Directive 8020 in May 2026. This raises questions about the future of its projects and the overall stability of the studio.

What does this mean for players?

For players, this news could negatively affect the development of future Supermassive games. The studio holds a unique place in the horror gaming world, but with fewer staff, the quality and frequency of new releases could be at risk. The recent takeover of the Little Nightmares series also raises questions about the franchise’s creative direction and consistency. Players will be wondering whether the studio’s new direction can match the charm and tension of earlier titles, especially now that Supermassive is under pressure.

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