Home News Godfall Developer May Have Shut Down

Godfall Developer May Have Shut Down

by David Feb 26,2025

Godfall Developer May Have Shut Down

Counterplay Games, the creator of Godfall, may have ceased operations, according to a LinkedIn post by an employee from another game studio. The post suggests Counterplay Games has "disbanded," leaving the future of the studio uncertain.

Godfall, despite being a PlayStation 5 launch title, failed to gain significant traction. Critics cited repetitive gameplay and a weak narrative as contributing factors to its poor sales and small player base. While not universally panned, its overall performance likely proved unsustainable for the studio.

The news emerged from a LinkedIn post by a Jackalyptic Games employee, detailing a cancelled collaborative project between the two studios. The post implies Counterplay's closure occurred recently, possibly towards the end of 2024. This aligns with the studio's lack of announcements since Godfall's Xbox release in April 2022.

Counterplay's Closure: Part of a Broader Industry Trend

This potential closure reflects a concerning trend in the gaming industry. Sony's shutdown of Firewalk Studios and Neon Koi in 2024 highlights the challenges faced by even studios backed by major publishers. Counterplay's situation differs, as it wasn't directly impacted by a parent company, but underscores the difficulty smaller studios face in navigating the increasingly competitive and expensive game development landscape. Even established studios like 11 Bit Studios (developers of Frostpunk) experienced layoffs in late 2024 due to profitability issues.

While the precise reasons for Counterplay's reported closure remain unclear, the combination of high development costs, demanding player expectations, and the saturated market likely played a significant role. Until an official statement is released by Counterplay Games, this remains speculation. The news, however, casts doubt on the future of any potential projects and leaves Godfall fans with an uncertain outlook.

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