Spanish studio Aheartfulofgames has accused mother or father firm Outright Video games of mismanagement over its determination to shutter the studio and make all 28 staff redundant.
In a press launch despatched to Sport Developer in tandem with native union CSVI, the event workforce stated Outright intends to shutter Aheartfulofgames round three years after it acquired the studio and pledged to help and broaden its workforce.
“Outright acquired our studio in November 2022, integrating us into their inner construction and assuming duty for undertaking choice and allocation, with the acknowledged intention of supporting the expansion of each the corporate and its productions,” explains the discharge. “From that time on, the studio’s administration and the working circumstances of its staff have been introduced below the direct management of the group.
“Following our acquisition, and after two years of continued improvement adapting to tight time and useful resource constraints, the Aheartfulofgames workforce delivered Teenage Mutant Ninja Turtles: Mutants Unleashed. The undertaking was accomplished on schedule and with out manufacturing points. After launching in October 2024, the sport met the business expectations set by Outright.”
Following the discharge of Teenage Mutant Ninja Turtles, nonetheless, the workforce claims they have been primarily put out to pasture by their mother or father firm. They allege that Outright, which is backed by UK-based non-public fairness agency EMK Capital, uncared for to offer work to the studio to justify an impending closure.
They are saying the studio was shortly ostracised after Outright appointed Robin Flodin as its new CEO in October 2024—a transfer they declare “marked a turning level in firm administration, resulting in a shift in strategic priorities that, from our perspective, signalled a constant lack of curiosity and minimal engagement from Outright relating to its tasks to our studio.”
“It turned more and more clear to groups throughout the group that the brand new management was prioritising low-cost, fast-turnaround tasks, a method which tends to result in decrease high quality outputs and a deterioration in working circumstances,” they add.
Aheartfulofgames claims it repeatedly tried to spin up tasks over the previous 12 months, however that Outright quashed these plans with out clarification—even when pitches have been “positively acquired” by potential licensors. As well as, the workforce alleges that Outright prevented them from helping the corporate’s different inner studios with their tasks, with the agency as an alternative selecting to outsource that work.
“We acquired requests from Outright UK to help a undertaking being developed by their inner workforce. Regardless of reportedly having outsourcing contractors concerned, the undertaking gave the impression to be falling in need of expectations. To our information, this inner workforce stays energetic and totally staffed,” continues the assertion.
“Over the course of those months, the frequency and scope of inner communications from Outright to Aheartfulofgames progressively diminished, culminating in Could 2025, when our studio was explicitly excluded from a company group assembly.”
“They thought they have been going to reap much more than they’re reaping now”
Aheartfulofgames says Outright justified the closure on the grounds of “productive causes,” however reiterates its declare that it was actively prevented from taking over new tasks.a It provides that Outright continues to provide titles at a gradual tempo, however has as an alternative turned to working with outsourcing studios reminiscent of Informal Brothers, Ardmand Video games, 3DClouds, and PHL Collective as an alternative of offering its inner groups with work.
“Outright selected to outsource improvement of those tasks to 3rd events whereas our workforce remained obtainable, working and receiving salaries, a choice for which no financial rationale has been offered,” it provides.
“Our operational capability would have allowed us to tackle one in all these tasks in parallel with our ongoing work, thereby making higher use of assets whereas persevering with to develop strategic and artistic proposals geared toward securing extra formidable alternatives for Outright. Though we acquired, and proactively submitted a number of preliminary licence pitches, as talked about above, none have been formalised by Outright.”
Chatting with Sport Developer concerning the state of affairs, three present Aheartfulofgames staff—who selected to stay nameless for worry of reprisal—clarify Outright’s acquisition of the studio initially appeared like a blessing. They are saying the corporate instantly pledged to broaden the dev workforce—and shortly made good on that promise—whereas additionally outlining a plan to have Aheartfulofgames progressively work on greater and extra expansive licensed titles.
One supply explains the deal appeared to offer the workforce with “security and stability” within the wake of the pandemic, and admits there was loads of optimism following the transfer.
“They got here to us with guarantees, not solely of larger and higher licenses, but in addition progress throughout the firm. They made us consider they’d a plan,” provides one other supply. “They gave our managers some sense of calm after three years of very tough instances—you realize, after spending years making an attempt to shut offers throughout the pandemic.”
On paper, then, the deal was easy: Outright would preserve the work flowing in Aheartfulofgames’ course, and the Spanish studio would proceed to provide licensed titles that might allow its mother or father firm to bolster its fame and footprint. The truth, it appears, did not ship on that promise.
Following the appointment of Flodin as CEO final yr, one supply explains the state of affairs turned more and more “unstable” with pitches being turned down with out purpose. The sense, in keeping with these we spoke with, is that Outright wished to maneuver in a brand new strategic course in the direction of cheaper tasks and licenses. “That is not what they promised to us,” says one supply. “So all of a sudden we turned a legal responsibility.”
They are saying the choice to shutter Aheartfulofgames was verbally communicated throughout an inner assembly in July. On the time of writing, the studio is slated to be shuttered in mid-August.
Workers at the moment are combating for his or her livelihoods. All three sources clarify they’ve been in negotiations with Outright in a bid to seek out an alternate route ahead. They are saying they’ve tabled plenty of proposals together with a relocation plan and partial layoffs, all of which have been rejected by Outright. They declare their mother or father firm is not keen on negotiating about something aside from the serverance packages that may in the end end in 28 folks shedding their jobs.
“It seems like they’ve their thoughts set on closing us at any value,” says one supply. “They inform us we’re simply not aggressive sufficient, however we have been being tremendous aggressive once we completed Teenage Mutant Ninja Turtles—and all of a sudden, the second we stopped engaged on that undertaking, we turned uncompetitive,” they proceed. “We could not be afforded one other undertaking. Not small tasks or massive tasks. Abruptly no undertaking matches our [studio] measurement.”
One supply says it feels as if the choice to shutter Aheartfulofgames was made by taking a look at numbers on an Excel sheet in a bid to determine find out how to make much more cash for administration and traders.
“Ultimately, to them, it is nearly cash. About getting extra revenue. I feel it is dangerous for the business typically and our inventive world that that is occurring all around the world,” they add.
“Emotionally, it has taken an enormous toll. Now we have a very good workforce. We have been working in actually good circumstances. Our studio managers have been at all times making an attempt to be truthful […] and it is actually unhappy to lose one thing that was working properly. Particularly as a result of we have been making an attempt to make video games that weren’t nearly earning profits, but in addition about doing inventive issues and giving folks within the workforce the power to participate in inventive choices. For all of us it has been arduous to lose that.”
Ultimately, one supply explains the closure seems to be a cynical determination made to appease traders who maybe anticipated to prosper extra off the again of a perceived sport business gold rush.
“They thought they have been going to reap much more than they’re reaping now,” they are saying. “And so they have made it clear this is not an financial determination, however the financial context offers them a proof for what they’re doing—however they aren’t shedding cash, they’re gaining much less.”
Sport Developer has reached out to Outright Video games for remark.
