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UK developer Splash Damage has entered a studio-wide consultation process, confirming that roles across the company are under review and that redundancies are possible. Management has described the move as a difficult but necessary step to respond to an increasingly challenging market and to preserve the studio’s future viability.
What the announcement says
Company leadership informed staff that a formal consultation will now take place to explore a range of options, which could include staff reductions. The statement emphasised that the studio will try to support affected employees and consider alternatives where possible, but made clear that nothing is yet finalised.
Immediate impact on staff
- Uncertainty for all employees: The consultation is studio-wide, meaning no team is exempt from review.
- Stress and disruption: Staff facing potential redundancy will likely experience immediate financial and professional uncertainty.
- Support promised: Management has committed to offering support, but the nature and extent of that support will be clarified during the consultation.
- Internal reorganisation risks: Some employees may be redeployed into different roles or teams as part of a restructuring effort.
What this could mean for Splash Damage’s projects
When a developer enters a consultation process, its live and in-development projects can be affected in several ways depending on the scale and structure of any resulting redundancies:
| Area | Possible short-term effects | Possible long-term outcomes |
|---|---|---|
| Ongoing projects | Delays, temporary slowdown, or reduced feature scope if key team members are affected. | Projects may be scaled back, handed to another studio, or cancelled in extreme cases. |
| Live services | Support cadence could be reduced; fewer updates and slower response to issues. | Longer-term viability depends on remaining team capacity and publisher/partner support. |
| Future pipelines | New initiatives may be paused or deprioritised while the studio stabilises. | Refocused strategy on fewer, more manageable projects is possible (shorter roadmap). |
Why this is happening now
The broader games industry has faced sustained economic pressures — rising development costs, shifting player expectations for live services, and investor demands for clearer returns. For individual studios, a stalled project, cancelled title, or ownership changes can rapidly accelerate cost-cutting measures. A studio-wide consultation usually indicates management is exploring structural change to reduce recurring costs or refocus resources.
How other studios and the community may react
The way Splash Damage handles the consultation will be watched closely by peers and players. Key areas of interest include:
- Transparency: Clear communication with staff and the community helps reduce speculation and protects reputation.
- Employee support: Notice periods, severance terms, outplacement services and references will shape community perception.
- Project continuity: Publishers, partners and players will want reassurance that live services and announced games remain supported.
What to watch next
- Updates from the studio at the end of the consultation process clarifying any redundancies or alternatives.
- Announcements about project status — whether timelines are maintained, delayed or changed.
- Signals from partners, publishers or parent companies about continued financial backing or strategic changes.