Last week, Swedish gaming company Enad Global 7 (EG7) began the “liquidation” of Toadman Interactive and laid off 38 Piranha Games employees.
EG7 said the decision to close Toadman Interactive was due to “ongoing industry challenges and the studio’s inability to secure new contract work deals at the pace necessary.”
Current contract work contracts on current projects, including Daybreak and Cold Iron, will be protected during the process that will take place in the second half of 2025.
69 employees and subcontractors will be affected by the liquidation, and 42 will remain to fulfill protected project contracts.
Last September, Toadman closed its offices in Stockholm, Visby and Oslo, in addition to layoffs at its Berlin studio.
As for Piranha Games, 38 employees will be laid off as part of a “business optimization plan” following the release of MechWarrior 5: Clans.
“The Piranha team truly delivered a high-quality game that exceeded both internal and external expectations in terms of quality, story and gameplay,” said EG7 CEO Ji Ham.
“Despite the phenomenal work done by the Piranha team, the game failed to reach new audiences or expand its core audience as expected and therefore failed to meet the necessary sales targets, forcing us to take the necessary measures”.
Toadman, publisher Sold Out and creative agency Petrol came together in January 2020 to form EG7. Later that year, the company acquired Piranha Games for $24.1 million.
