Kwalee Labs Shuts Down Weeks After Luna Abyss Launch
Kwalee Labs has ceased operations and laid off its entire nine-person team just weeks after the successful launch of their critically acclaimed PS5 and PC game, Luna Abyss.
Coverage across 3 outlets
Just Weeks After Launching Highly Rated PS5 Game Luna Abyss, the Team Has Been Laid Off
Kwalee Labs, the development team behind the recently released PlayStation 5 game Luna Abyss, has been laid off just weeks after the game's launch. Despite receiving positive reviews and player reception, all nine members of the team are now available for work. This news comes amidst broader industry concerns about layoffs, with reports suggesting further redundancies at companies like Xbox.
Kwalee Labs shut down following launch of Luna Abyss
Kwalee Labs, the developer of the PC and PlayStation 5 shooter Luna Abyss, has ceased operations just one month after the game's release. The studio, formerly known as Bonsai Collective, was acquired by Kwalee in 2025. Despite positive reviews and sales of 12,000 units on Steam, the entire nine-person team was made redundant due to circumstances beyond their control.
Dev releases one of the year's best shooters, entire team is laid off less than a month later: "A decision that was completely outside of our control"
Kwalee Labs has laid off its entire development team and shut down the studio less than a month after releasing its well-received cosmic horror bullet hell shooter, Luna Abyss. Despite positive reviews and critical acclaim, studio CEO Hollie Emery stated the decision was outside of their control. This follows a trend of successful games not guaranteeing studio survival, with the closure of Tango Gameworks after Hi-Fi Rush's release also noted.
