Godfall developer Counterplay has reportedly shut down

Godfall developer Counterplay has reportedly shut down.

Whilst not formally confirmed by the studio, PlayStation Lifestyle allegedly spotted and verified a post on LinkedIn that stated the studio had "disbanded" after a partnership with Jackalyptic fell through.

"Over the past six months or so our project at Jackalyptic has been supercharged by the world-class devs at Counterplay Games," the statement began.

"It's impossible to overstate their impact. From the very first day they put their shoulders to the wheels like it was their baby.

"Unfortunately, we were unable to continue our partnership into the new year and [Counterplay Games] was disbanded," it concluded before sharing profiles of those impacted by the changes. The post has since been edited to erase mention of the closure.

It is unclear how many people have been impacted.

Despite backing from Gearbox, Counterplay's sole published game, Godfall - which was developed with Disruptive Games as a PS5 launch title - released to middling critic and player reviews.

The swath of job cuts from last year seem to be continuing in 2025. Yesterday, we reported that Robocraft 2 developer Freejam had shuttered. Swedish games firm Enad Global 7 (EG7) also initiated the "wind down" of Toadman Interactive, which resulted in 69 job losses and 38 layoffs at Piranha Games.

In the first two weeks of 2025 alone, over 150 developers have lost their jobs, including cuts at Splash Damage and Jar of Sparks.