Shockwaves in the Gaming Industry: Reflector Entertainment Lays Off 18% of Workforce After Mixed Launch of Unknown 9: Awakening

In a surprising turn of events, Montreal-based Reflector Entertainment has confirmed significant layoffs, impacting 18% of its workforce. This news comes just a month after the launch of the studio’s highly anticipated debut title, Unknown 9: Awakening.

The studio explained on its website that the layoffs are part of a strategic shift as the company enters a new phase of development. Reflector stated that the affected employees were “not assigned to roles that our active projects require.” However, the decision has raised eyebrows, given the studio’s recent efforts to establish a transmedia universe around Unknown 9, including podcasts, novels, and comics.


Support Amid Uncertainty

Reflector has pledged to support the laid-off employees by offering severance packages and access to medical, emotional, and career planning resources. Despite these measures, the move has left many wondering about the stability of Reflector’s long-term vision.


From High Hopes to Uncertain Horizons

The layoffs were first reported by journalist Ethan Gach via BlueSky, with additional confirmation from affected employees sharing their stories on LinkedIn. Key members of the team, including narrative and game designer Anna Karina Bermudez and brand manager Manou Deneuvel, are now seeking new opportunities. Reports suggest that cuts have hit multiple departments, including QA, marketing, art, and narrative design.

This development casts a shadow over Reflector’s ambitious Unknown 9 project, which was designed to span multiple media formats. Published by Bandai Namco, the game was originally scheduled for release in the summer but faced a delay, eventually launching on October 18, 2024, to mixed reviews. Questions about its commercial performance remain unanswered.


A Troubled Transmedia Dream

Reflector Entertainment, acquired by Bandai Namco in 2020, was hailed as a bold new player in narrative-driven gaming. The Unknown 9 franchise was envisioned as a groundbreaking action-adventure series enriched by its multimedia ecosystem. However, the mixed reception of Unknown 9: Awakening may have derailed this ambitious plan.

While layoffs are not uncommon in the volatile gaming industry, the timing and scale of these cuts hint at deeper challenges within Reflector and its partnership with Bandai Namco. Industry insiders speculate that the game’s delay and lukewarm reviews may have pressured Reflector to reassess its priorities.


A Broader Industry Trend?

Reflector’s layoffs are not an isolated case. Across the gaming industry, studios are grappling with tightening budgets, shifting market trends, and high player expectations. Just this week, Thought Pennies announced headcount reductions following a project funding withdrawal, reflecting a broader theme of financial instability in gaming.


What’s Next for Reflector?

Reflector’s future remains uncertain. As the studio navigates this turbulent period, the success—or failure—of Unknown 9: Awakening will likely determine its next steps. Bandai Namco’s role as a publisher and stakeholder will also be pivotal in shaping Reflector’s recovery.

For now, fans and industry observers alike are left wondering whether Reflector can rebound from this setback or if this marks the beginning of the end for the studio’s ambitious Unknown 9 vision.

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