Highlighting years of dismal performance, Mettlesome and Fae Farm creator Phoenix Labs is letting go of “most of the studio” precisely two years after it was acquired by blockchain firm Specialty.
The studio’s latest round of layoffs was announced on LinkedIn. “We have made the challenging choice to let go of the majority of the studio as part of unfortunate yet essential changes to our operations,” the post states.
In acknowledgment of players, Phoenix Labs mentions: “We will share further information in the upcoming weeks regarding what this means for Dauntless and Fae Farm. At present, our priority is to assist those affected during this transition.”
Fae Farm is an excellent small farm simulation RPG that functions quite well on its own, but the outlook for Mettlesome appears particularly bleak. The multiplayer Monster Hunter-inspired action RPG was significantly overhauled in December alongside its Steam launch, and these modifications were universally criticized as drastic reductions in quality and monetization. At the time of writing, Mettlesome boasts just 16% positive user reviews on Steam, and its average daily player count has plummeted.
The “obviously not player-centric” changes to Mettlesome provoked the anger of former Phoenix Labs producer Jesse Leigh Gagnon, who was part of the studio’s early days and who agreed that the December update “destroyed the core gameplay and crafting.”
After today’s layoff news, former Phoenix Labs artist Nicholas Kole, who was part of the more than 140 developers laid off last year after Specialty scrapped a three-year project that was weeks away from being revealed, expressed on Bluesky: “And [that] feels like the final blow. I am so furious at the overlords I can’t even find the words.”
As Game Developer has reported, the Specialty acquisition was managed with unusual secrecy, and the period since the deal has been characterized by a sequence of cancellations, layoffs, and currently poorly received updates. The new ownership has allegedly pressured its team of developers to find ways to incorporate blockchain technology – which has proven unpopular, unsuccessful, and generally infeasible for numerous games – into their projects. Phoenix Labs has never disclosed any blockchain initiatives or projects, but Mettlesome players are concerned that its new monetization strategy is a sign of upcoming troubles. At this point, it remains uncertain whether anything will emerge from Phoenix Labs again.
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“One in 10” game developers were laid off in the past year, GDC survey of over 3,000 developers indicates: “We set unattainable targets and then dismiss everyone if they turn out to be unachievable.”
