This article reviews recent developments in a Madrid-based external studio that contributed to major AAA titles and is now facing closure. The studio, Renowned for its involvement in prominent projects, it is slated to close its doors in July 31, affecting all its employees. The decision comes despite a wave of similar moves by larger companies reporting record financial gains.
A renowned art studio in video game development, the Madrid branch of the organization has been involved in creating assets for titles such as A revamped version of MediEvil, Dustborn, the enhanced edition of The Last of Us: Part II, Diablo IV, and Lords of the… Fallen. The studio, active for eight years, built a respected profile in the industry. However, its owner, a company that took over the Madrid and Manila locations in 2022, has cited irreversible financial losses as a justification for closing the Madrid headquarters, even though no new projects have been assigned since the acquisition; the studio was still sustaining itself with preexisting contracts.
The parent organization initiated a legal process of mass dismissal to terminate the employment of all 42 workers at the Madrid branch, resulting in the abrupt termination of operations on the scheduled date. Key trade unions supporting video game industry professionals in Spain, along with allied organizations, have raised concerns regarding the real rationale behind the studio’s shutdown. They suspect that the purchase was made with the possible aim of shifting work to the Manila office, where conditions are less favorable and compensation is lower.
Employees who remain at the Madrid facility have reached out to industry news outlets to express "their disillusionment regarding what they perceive as a" lost opportunity to further develop a talented team. Concerns have been raised that the dismissal packages might not fully capture the genuine essence of the situation causing the studio’s closure. The following points summarize the circumstances:
- The Madrid studio, known for its contributions to several major video game projects, will permanently close on July 31.
- The owner, having acquired the Madrid and Manila studios in 2022, justifies the closure based on proclaimed sustained financial losses.
- Despite claims of financial hardship, the studio in Madrid continued to operate on previous contracts without any new commissions from its parent since the takeover.
- Unions and workers suspect that the strategic intent was to reduce activity in Madrid in favor of relocating production to the Manila office, where working conditions and wages differ significantly.
- Industry professionals and remaining staff argue that the final redundancy packages are inadequate given the circumstances leading to the studio’s shutdown.
As events continue to unfold, additional information is expected to see whether additional details emerge about the motivations behind the closure and how the affected team will navigate the transition in the evolving video game development landscape.
