UK Developer Splash Damage Begins Studio-Wide Cut, Shroud’s Dream Game Faces Challenges

Splash Damage has begun a studio-wide consultation process that is expected to result in significant redundancies across its Bromley-based team.

The announcement was shared internally with employees this week and later posted publicly on LinkedIn, confirming that every department at the studio is affected.

Image via Gaming Amigos

This isn’t the first major shake-up of the year. Earlier in 2025, Splash Damage already went through a round of layoffs following the cancellation of Transformers: Reactivate, an online action game revealed back in 2022 but never showcased publicly.

The situation comes just months after Splash Damage was acquired by unnamed private equity investors in September. At the time, the new owners said the studio would continue under its existing leadership team. Before that, the company was owned by Tencent, which acquired it in 2020 through its purchase of poultry firm Leyou. Leyou had earlier taken over the studio from its original founder, Paul Wedgewood, in 2016.

While these transitions didn’t immediately change the day-to-day of the studio, the long-term impact is becoming clearer now. According to reports by GamesIndustry.biz, Tencent and fellow Chinese giant NetEase began pulling back on their Western expansion throughout 2024, triggering divestments, closures, and job cuts across multiple UK operations. Sumo Group, another Tencent-owned company, cut 15% of its staff in 2024 and continued layoffs into January, even selling off its publishing arm Secret Mode earlier this year.

Square Enix also recently cut staff at what used to be Eidos, affecting more than 100 jobs, and Sony fully closed its London Studio in 2024.

Project Astrid and Future Plans Now Uncertain

Shroud and Sacriel announced their open-world survival shooter game, Project Astrid, in 2023 | Image: Splash Damage

One of the biggest questions many of us have right now is about Project Astrid, the studio’s ambitious open-world survival FPS developed alongside streamers Michael “Shroud” Grzesiek and Christopher “Sacriel” Ball.

The game was announced in 2023 and pitched by Shroud as his “dream project,” with a focus on tight gunplay, open-world exploration, and encounters that he felt the industry hasn’t yet nailed. However, with the entire studio going through a consultation process, the future of this AAA collaboration is unclear.

Neither Shroud nor Sacriel have commented on the layoffs so far. And considering how many influencer-led game projects have struggled—Spectre Divide, the 3v3 shooter Shroud supported, shut down just six months after launch—concerns around Project Astrid are understandable.

Splash Damage’s Legacy and the Road Ahead

Splash Damage was founded in 2001 by developers who met through the Quake modding community. They quickly made a name for themselves with Wolfenstein: Enemy Territory, later working on Enemy Territory: Quake Wars, Brink, and the popular F2P shooter Dirty Bomb. The studio also collaborated heavily with Microsoft, including on Gears 5, Gears Tactics, and remasters of Gears of War and Halo.

Its last major release was Outcasters for Google Stadia back in 2020—a platform that didn’t survive long enough to support the game’s lifespan.

“A Difficult Step,” Says Splash Damage

In its public statement, Splash Damage acknowledged the emotional and practical toll this process will have on its team, saying: “This was a difficult step for us to take, but we believe it is necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market.”

The studio added that it plans to “retain talent” where possible and support those affected as the consultation progresses. But for now, both employees and fans are left waiting to see what the restructuring means for Splash Damage’s future and the fate of Project Astrid.