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Godfall Developer Reportedly Shuts Down

By ThomasApr 21,2025

Godfall Developer Reportedly Shuts Down

Summary

  • Counterplay Games, the developer of Godfall, may have shut down.
  • A LinkedIn post from an employee at another studio suggests that Counterplay Games has 'disbanded.'
  • Godfall struggled with a small player base due to repetitive gameplay and a lackluster story.

Counterplay Games, known for developing Godfall, may have quietly shut down, as suggested by a LinkedIn profile update from an employee at another studio. The company has been notably quiet since the release of its loot-heavy hack-and-slash game, Godfall, which was a launch title for the PlayStation 5 in 2020. There have been no new game announcements from the studio since then, and recent indications point towards the Godfall developers having disbanded.

Despite being the first title announced for the PS5, Godfall failed to make a lasting impact on the gaming community. Even after a significant update in 2021, the game continued to suffer from repetitive gameplay and a story that didn't resonate with players. Consequently, it didn't achieve strong sales and struggled to retain a sizable player base. While the reception wasn't entirely negative, the game's overall performance may have been too detrimental for the studio to continue operating.

The news of the potential shutdown stems from a LinkedIn post by an employee of Jackalyptic Games, which was shared by PlayStation Lifestyle. The post revealed that Jackalyptic had been working with Counterplay on a new title that didn't progress to 2025, leading to Counterplay Games' disbandment. There has been no official statement from Counterplay, but the post implies that the disbandment happened around the end of 2024. It's also noteworthy that Counterplay has been relatively silent since bringing Godfall to Xbox on April 7, 2022, making a silent disbandment not entirely surprising.

Counterplay Games May Be the Latest in a String of Studio Shutdowns

If confirmed, Counterplay Games' closure would add to a troubling trend of studio shutdowns in the gaming industry. Sony recently shut down Firewalk Studios after the quick discontinuation of Concord in September 2024, and in October of the same year, it closed Neon Koi to redirect resources to more successful projects. Unlike those cases, Counterplay's potential end would not be the result of a parent company's decision, but it would still highlight the challenges of staying afloat in the current gaming landscape.

The costs of game development have soared, and both players and shareholders have increasingly high expectations. For smaller indie studios like Counterplay, making a significant impact in a competitive market is challenging without the backing of larger corporations. Even anticipated titles can falter, as seen with 11 Bit Studios' layoffs in late 2024 due to profitability issues. While the specific reasons for Counterplay's reported disbandment are unclear, similar industry pressures may have contributed. The studio has not issued an official statement, and fans should await further details. For now, the outlook is uncertain for Godfall enthusiasts and those anticipating future releases from Counterplay.

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