Summary
Continuing layoffs in the video game industry have now struckFae Farmdeveloper Phoenix Labs, with approximately 140 staff members facing termination and multiple in-development games getting axed. Last year’s unfortunate trend ofmajor gaming studio layoffshas carried over into 2024, and audiences remain uncertain of the future of the industry, as both AAA and indie studios have been plagued by “restructuring.”
Released in 2023,Fae Farmis a 3D farming life-sim with magical RPG elements and has been compared to the likes ofStardew Valley,Animal Crossing, andDisney Dreamlight Valley. The game’s developer, Phoenix Labs, also worked onDauntless, a free-to-play action RPG published by Epic Games. In spite of both games proving popular and growing dedicated player bases, Phoenix Labs has suddenly announced major cutbacks in its workforce and development projects.
First revealed by insiders and employees on May 16, Phoenix Labs is expected to let go of roughly 140 staff members, specifically axing those working on any and all projects outside ofFae FarmandDauntless. According to a series of LinkedIn posts from Phoenix Labs developerNoah Watkins, a new game he and others had been working on for over five years has now been canceled and many of its development team laid off. He notes that this latest string of cutbacks is in addition to another recent round of layoffs, resulting in approximately 200 total layoffs at Phoenix Labs within the past few months. Phoenix Labs has stated that the layoffs are part of a “restructuring” process that aims to ensure a sustainable business in the long-run and will place full development and employment priority onfuture additions toFae FarmandDauntless.
Layoffs Continue To Bombard The Video Game Industry
From major AAA brands to smaller indie studios, the video game industry has seen layoffs, cutbacks, and cancelations popping up left and right for almost a year straight. Top companies like Microsoft, Embracer Group, Sony, Sega, and evenInsomniac announced staff layoffs, with many leaders pointing to “restructuring” as a necessary move to ensure corporate sustainability. However, audiences have remained tentatively skeptical and openly critical of the decisions by CEOs to ax hundreds of employees for seemingly short-term gains. Many have pointed to record profits and rising executive salaries in counterarguments against the alleged necessity of the cutbacks. As tensions continue to grow between companies and their workers and consumers, fans remain worried about the tumultuous conditions of the gaming industry.
Companies across industries continue to struggle to find a balance between wavering economic conditions and internal procedures, with many resorting tomajor layoffs and cutbacksto satisfy investors and shareholders. With audiences remaining uneasy in the face of almost constant layoffs and cancelations in the video game industry, it will be interesting to see if Phoenix Labs will be able to bounce back and achieve its desired future forFae FarmandDauntless.
Fae Farm
WHERE TO PLAY
Escape to the world of Fae Farm and create your own cozy home in the enchanted world of Azoria. As you nurture and grow your homestead, you’ll get to meet charming characters, foster deep relationships and discover ways to infuse magic into everything you do. Customize your character, master the arts of crafting, cooking, potion-making and discover so much more.Unfold the mysteries of the island on your own or with up to three other players. You can invite your family and friends or visit their homestead to progress together, playing beside you or online. As the seasons change, you’ll be able to unlock new areas and restore the world around you. Embark on a ship and set sail to Azoria, there’s a magical world waiting for you!
