We have the unfortunate duty to report that the layoffs within the games industry will apparently continue until funny line improves. Enad Global 7, the Swedish company that took ownership of Daybreak Games in 2020 (and then was taken over by Daybreak from within), has released two separate announcements that confirm the effective closure of developer Toadman Interactive and a round of layoffs at Piranha Games.
The Toadman announcement falls within MOP’s wheelhouse as it was the team to which EG7 reportedly moved development on PlanetSide 2 last year following the sale of the PlanetSide IP (though it appeared Daybreak had continued publishing). The 12-year-old MMOFPS actually had seen development since then, with fishing and much-wanted server merges; less than a month ago, the Toadman devs even unveiled a new assault mode on deck for 2025.
But EG7’s Friday night press release claims that the “wind down decision stems directly from the continued industry challenges and the studio’s inability to secure new Work-for-Hire (WFH) contracts at a necessary pace.” The decision will affect 69 employees and sub-contractors, though 49 of them will be protected to continue “ongoing Work-for-Hire (WFH) contracts with Daybreak and Cold Iron.” Readers will remember this new culling of employees follows an earlier layoff round last September.
“This decision does not come lightly and follows several initiatives to turn the subsidiary profitable,” the presser claims.
Meanwhile, at Piranha Games, the studio behind multiplayer PvP ‘Mech battler MechWarrior Online and the co-op title MechWarrior 5: Clans, 38 employees have been handed their walking papers as part of EG7’s “ongoing efforts to ensure that all business units operate in a financially sound manner.” Blame is laid directly at the feet of MW5: Clans, which “failed to reach new audiences and expand its core audience as anticipated and therefore has not met the necessary sales targets,” according to EG7 CEO Ji-Ham.
Neither announcement provides any details on what this means for the life of PS2 and MWO. The confirmation that EG7 will keep contracted employees to work on Daybreak and Cold Iron projects suggests the possible completion of those promised 2025 features, while the Piranha announcement zeroes in exclusively on completing the release of planned DLC for MW5: Clans, and neither game has made any official announcements at the time of this story’s writing.
The notable silence has understandably caused fans of both games to worry, particularly among PlanetSide players as they start saying their goodbyes and express dismay about the game being unable to catch a break. “It’s so toadover,” reads one such remark. The game’s forum isn’t actually buzzing too much over the news, apart from a thread panicked over one influencer’s out of pocket speculation that the game will end in three months – a claim for which there is absolutely no evidence.
We reached out to EG7 this morning for clarity and will update if we get it.
