Bithell Games founder Mike Bithell has announced the studio is laying off 11 employees, following a failure to secure a new ‘larger scale project’ that would have allowed staff retention. The news arrives just two months after the launch of Tron: Catalyst, which appears to have been a make-or-break title.
‘Sad news today. Bithell Games, having been unable to secure a new larger scale project, is reducing in size,’ Bithell said on Bluesky. ‘This means eleven jobs are being made redundant.’
‘It became clear leading up to the release of our most recent game that we were not immune to the challenges faced by many game development teams seeking funding partners in 2024 and 2025. We’ve fortunately been able to communicate these challenges ahead of time, and work with affected staff to ease departures as much as possible via severance packages.’
What’s next for Bithell Games?
Staff were informed of the possibility of layoffs prior to the release of Tron: Catalyst, with the situation being well-understood as development continued. Like other studios, Bithell Games had been dealing with challenges securing investment, and despite its expertise in narrative and action-rich licensed games, it was not able to secure a new, game-changing contract.
‘It’s important to state that this was an incredible team of exceptionally talented people,’ Bithell noted. In his announcement, he encouraged any other developers to consider hiring departing staff members, vouching for their talent.
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Bithell further confirmed this news won’t impact the availability of any existing self-published games or ongoing support for them: ‘We are incredibly grateful for our audience, and hope that your interest in our work follows individual team members as they head into other roles.’
‘Bithell Games was always defined and elevated by our people. Today we are less.’
It appears Bithell Games will continue to operate, although the 11 staff laid off represent the ‘majority’ of the studio’s full-time staff. This move, as you’d expect, will significantly reduce the capacity of the studio, and its ability to develop new, larger-scale games. Going forward, it’s likely remaining staff will return to the studio’s roots – Bithell Games was initially conceived by Mike Bithell following the solo release of the award-winning puzzle-platformer, Thomas Was Alone.
As for the staff being laid off, they enter an ever-shrinking games industry where opportunities are becoming much harder to come by. As investors reduce their spending on video games, and the global economy suffers, it’s becoming much more difficult to find secure work. Our thoughts are with those developers now exiting their current roles.
Also on ScreenHub: Avalanche Studios’ Contraband is no longer in active development
Avalanche Studios’ Contraband is no longer in active development, with the project now on hold as its future is evaluated. The news was first shared by Game File‘s Stephen Totilo and Bloomberg‘s Jason Schreier, in conflicting reports about its status. One report alleged the game had been outright cancelled, while another confirmed it was ‘on hold.’
In a brief announcement, Avalanche Studios has officially confirmed the project’s departure from active development, with wording that suggests there could still be a future for the game. Given precedent, it does feel unlikely that Contraband will recover, but the door isn’t quite closed yet.
‘Over the past several years, Avalanche Studiso Group and Xbox Game Studios Publishing have collaborated on Contraband,’ the notice reads. ‘Active development has now stopped while we evaluate the project’s future. We’re thankful for the excitement we’ve seen from the community since we announced and will give an update on what’s next as soon as we can.’
