Last week, Swedish games firm Enad Global 7 (EG7) initiated the “wind down” of Toadman Interactive, a move that will impact 69 employees and subcontractors. Additionally, EG7 announced the layoff of 38 employees from Piranha Games as part of a broader “business optimisation plan.”
Reasons for Toadman Interactive Closure
EG7 stated that the decision to close Toadman Interactive was driven by “continued industry challenges and the studio’s inability to secure new work-for-hire contracts at a necessary pace.” The wind-down process is expected to occur during the second half of 2025.
The company assured that current work-for-hire contracts on projects, including those with Daybreak and Cold Iron, would be protected. Out of the 69 employees affected, 42 will remain to fulfill obligations tied to these protected projects.
This decision follows a series of cutbacks at Toadman Interactive. In September of last year, the studio closed its offices in Stockholm, Visby, and Oslo, as well as reduced its workforce at the Berlin studio.
Piranha Games Layoffs Post-MechWarrior 5: Clans
Piranha Games, acquired by EG7 in 2020 for $24.1 million, is laying off 38 employees following the release of MechWarrior 5: Clans. According to EG7 CEO Ji Ham, while the game exceeded expectations in terms of quality, story, and gameplay, it failed to attract new audiences or expand its core user base as anticipated. Consequently, the title did not meet necessary sales targets, leading to the “business optimisation plan.”
“The team at Piranha truly delivered a high-quality game that exceeded both internal as well as external expectations,” said Ham. “Despite the phenomenal work by the team at Piranha, the game failed to reach new audiences and expand its core audience as expected and therefore has not met the necessary sales targets, which has forced us to undertake necessary actions.”
EG7’s Formation and Acquisitions
Toadman Interactive was one of the founding components of EG7, which was formed in January 2020 through the merger of Toadman, publisher Sold Out, and creative agency Petrol. The acquisition of Piranha Games later that year was part of EG7’s strategy to strengthen its portfolio in the gaming industry.
These layoffs and closures mark significant changes for EG7 as the company adapts to ongoing challenges within the gaming sector.
Key Points:
- EG7 is shutting down Toadman Interactive, impacting 69 employees and subcontractors.
- 42 employees will remain to complete work-for-hire contracts on protected projects.
- Toadman previously closed offices in Stockholm, Visby, Oslo, and reduced staff in Berlin.
- 38 employees at Piranha Games are being laid off following MechWarrior 5: Clans failing to meet sales targets.
- EG7 was formed in 2020 through the merger of Toadman, Sold Out, and Petrol, and later acquired Piranha Games for $24.1 million.