Piranha Games to Cut Jobs Following Underwhelming Performance of Mechwarrior 5: Clans
Piranha Games is set to lay off employees after its latest game, Mechwarrior 5: Clans, failed to meet sales expectations. Additionally, Toadman, the studio behind EvilVEvil, will be shutting down.
Enad Global 7 has announced that 38 employees at its Piranha Games studio will be laid off after the most recent game in its Mechwarrior series, Mechwarrior 5: Clans, “performed below expectations.” Separately, the company also revealed that Toadman, known for developing the 2024 shooter EvilVEvil, will be closed entirely.
“The team at Piranha truly delivered a high-quality game that exceeded both internal as well as external expectations in terms of quality, story and gameplay,” Ji Ham, CEO of Enad Global 7, said. “Despite the phenomenal work by the team at Piranha, the game failed to reach new audiences and expand its core audience as anticipated and therefore has not met the necessary sales targets, which has forced us to undertake necessary actions.”
We praised Clans quite a bit upon release, stating it “delivers a strong story of struggling young warriors alongside the best-ever version of its iconic, lumbering mech combat” in our 82% review. However, player numbers on Steam were disappointing, peaking at just 5,600 concurrent players, according to SteamDB, which is not significantly more than the older Mechwarrior Online.
The layoffs will enable Piranha to continue operating with “sound profitability” while still producing new content for Mechwarrior 5: Clans, as confirmed by Enad Global 7, emphasizing the importance of sustainable development in the gaming industry.
In addition, Toadman will be shut down following unsuccessful attempts to turn the subsidiary profitable. EG7 indicated that the shutdown relates directly to ongoing industry challenges and Toadman’s failure to secure new Work-for-Hire contracts at an adequate rate, resulting in 69 employees and subcontractors losing their jobs.
The unfortunate trend of layoffs continues in the gaming sector, marking a troubling start to 2025. Recently, Splash Damage suggested layoffs might follow the cancellation of Transformers: Reactivate. Meanwhile, Jar of Sparks, a studio led by former Halo Infinite design head Jerry Hook, halted its projects and effectively closed after parent company NetEase ceased funding.
