Kwalee lays off the entire Luna Abyss development team as one of this year’s overlooked bullet-hell games falls victim to an overcrowded release schedule

The entire 9-person development team at Kwalee Labs has been laid off just weeks after the launch of their critically acclaimed sci-fi bullet-hell shooter, Luna Abyss. The game was released on May 21, 2026 to positive reviews from critics and players, but appears to have been overshadowed by a crowded May release schedule.

Kwalee Labs CEO Hollie Emery announced the layoffs on June 16, 2026, describing the decision as “completely outside of our control.” The company praised the talented team as specialists in Unreal Engine with AAA-class quality standards. Luna Abyss launched on PC (Steam) and PS5, with 12,000 units sold on Steam.

The studio, formerly known as Bonsai Collective, was acquired by Kwalee from administration in September 2025 and subsequently rebranded as Kwalee Labs. This shutdown represents another casualty in the volatile games industry, where even critically acclaimed titles struggle to find commercial success in crowded release windows.

Kwalee lays off the entire Luna Abyss development team as one of this year’s overlooked bullet-hell games falls victim to an overcrowded release schedule

Sources