Forspoken‘s Commercial Underperformance Leads to Studio Closure, highlighting Industry Woes
Square Enix’s adventure RPG action game, Forspoken, released in 2023, garnered mixed reviews and was quickly subject to significant price reductions. The company’s president acknowledged that the title “did not meet the company’s expectations,” a sentiment that ultimately led to the closure of its advancement studio, Luminous.This situation mirrors broader trends within the gaming industry, where a series of high-profile releases have underperformed, prompting questions about the role of inflated budgets and unsuccessful game launches in recent industry-wide layoffs.
The industry has witnessed substantial job losses, with companies like Unity, Embracer, and EA implementing significant workforce reductions. Microsoft, as an example, scaled back its Xbox Game studios following the critical and commercial disappointment of Redfall, which also resulted in the closure of Arkane Austin. Reports suggest that a contributing factor to this widespread crisis is the failure of games that were anticipated to be major financial successes. The period between 2022 and 2025 has seen thousands of employees affected by these dismissals.
industry faces Harsh Lessons from Recent Game Releases
The experiences of Forspoken, Redfall, and other titles like Sony’s Concord, illustrate a critical takeaway: established brands and prestigious development studios do not inherently guarantee commercial success. A significant cause of these major failures has been attributed to overly ambitious promises and the marketing of games in states that are far from playable. This trend underscores a need for greater humility within the industry.
As the volume of game releases continues to grow, player scrutiny and media criticism of game deficiencies have intensified. Many titles have faltered due to excessive ambition, such as attempts to blend genres or the implementation of live-service models, often overshadowed by the success of previous installments from the same franchises.Marketing campaigns have also frequently misfired, beginning with the promotion of games as AAA productions only to end with widespread refund requests.
The prevalence of these “failure festivals” raises concerns about a potential wider creative crisis. It is worth questioning whether the relentless pursuit of visually spectacular worlds and constant “playability” comes at the expense of internal refinement. The current industry aspiration for many companies appears to be the creation of a game akin to Fortnite, yet mounting evidence and player feedback suggest this may not be the true desire of the gaming audience.
The widespread disappointment and erosion of reputation for major gaming brands serve as a clear signal for the industry to reassess its priorities. The hope is that 2026 will see a reduction in such high-profile missteps and a greater focus on delivering enjoyable gameplay experiences, which is ultimately what players are seeking.
