Iron Galaxy Lays Off More Developers Amid Financial Struggles
▼ Summary
– Iron Galaxy is laying off dozens of employees, following its recent work on the well-received Tony Hawk’s Pro Skater 3 + 4 remaster.
– The layoffs could affect up to 90 people, as the company states it must adapt to permanent changes in how games are made and consumed.
– The studio, known for porting and co-developing major titles like Killer Instinct and Batman: Arkham games, previously laid off 66 employees in early 2025.
– Its attempt at an original live-service game, Rumbleverse, was shut down within a year, though the studio continued support work to avoid layoffs longer.
– The company cites a stagnating console market and scarce outside investment as reasons it must evolve and reduce its team size.
The video game industry continues to face a harsh reality, with another major studio announcing significant workforce reductions. Iron Galaxy, the Chicago-based developer renowned for its co-development and porting expertise, confirmed a new round of layoffs affecting dozens of employees. This decision arrives on the heels of the studio successfully launching the well-received Tony Hawk’s Pro Skater 3 + 4 remaster collection, highlighting the disconnect between critical success and financial stability in the current market. Sources indicate the cuts could impact as many as 90 staff members.
In a statement posted on LinkedIn, the company framed the move as a necessary adaptation to a permanent shift in market conditions. “Ever since 2020, when everything about making video games started to change, people have been waiting for business ‘to get back to normal,'” the studio wrote. “This year, we’re adopting a new posture to accept these current market conditions as permanent.” The statement pointed to fundamental changes in how players consume games and the evolving investment criteria of publishers, pressures that have impacted all of Iron Galaxy’s partners.
Founded in 2008, Iron Galaxy built its reputation as a work-for-hire studio, providing crucial development support on major franchises like Killer Instinct, the Batman: Arkham series, and Borderlands. The studio’s attempt to launch its own original intellectual property, the live-service brawler Rumbleverse in partnership with Epic Games, proved unsuccessful. The game was shut down within a year, a high-profile setback that preceded the departure of co-CEO Adam Boyes in 2024.
Following that failure, the company relied on its co-development support work to avoid layoffs, contributing to projects like the PC version of The Last of Us Part 2 Remastered. However, the financial pressure became unavoidable by early 2025, leading to an initial round of cuts affecting 66 employees. At that time, the studio described the action as a “means of last resort” for long-term survival.
The latest layoffs suggest that previous measures were insufficient. The company cited a stagnant console gaming market, the increasing difficulty of achieving hit titles, and a scarcity of outside investment as ongoing challenges. “We are terribly sorry to lose them as we take steps to adapt to the climate of the video game industry,” Iron Galaxy stated. “It’s time for us to evolve again.” The statement underscores a painful period of contraction and recalibration for a veteran studio navigating an industry that has fundamentally changed.
(Source: Kotaku)
