Weeks After Launching A Great Game On Game Pass, Dev Lays Off Its Staff

Luna Abyss, a critically acclaimed first-person horror shooter developed by Kwalee Labs, was released just one month ago on May 21 across Xbox Series X|S, PlayStation 5, and PC—including a same-day launch on Game Pass. Despite receiving critical praise with an 81 Metacritic score, the game’s entire nine-person development team, including CEO Hollie Emery, has been laid off.

Emery announced the layoffs via LinkedIn, stating the decision was “completely outside of our control.” The team, which spent seven years developing Luna Abyss since 2019, expressed pride in the game’s achievement and gratitude for the critical reception it received from both the industry and media. However, the game failed to gain commercial traction, peaking at just 317 concurrent players on Steam—a stark contrast to its positive reviews.

Kwalee Labs was established as a subsidiary of UK-based publisher Kwalee (founded over 15 years ago) specifically to develop Luna Abyss, making it the studio’s only released title. While no official statement has been provided by Kwalee addressing the layoffs, the circumstances highlight the challenging landscape for independent game development, where critical success doesn’t guarantee commercial viability. The laid-off team members are now seeking new employment opportunities.

Sources