In a tough turn of events for the gaming industry, Tencent has confirmed a reduction in headcount at its Sharkmob London studio, attributing the decision to difficult market conditions that have affected several companies within the gaming sector. While the exact number of employees impacted has not been disclosed, reports suggest that a significant portion of the London team may have been affected.
Key Details of the Layoffs
• Sharkmob London has seen a reduction in headcount, though Tencent did not reveal specific numbers.
• The layoffs are part of a broader trend affecting the video game industry, with many studios struggling to adapt to current market conditions.
• The decision was made after Sharkmob London entered a consultation period, which also resulted in the cancellation of an unannounced game.
• Sharkmob’s Malmö studio, known for its upcoming title Exoborne, is not impacted by the layoffs and remains focused on its development efforts.
The Reasons Behind the Layoffs
The gaming industry, like many other sectors, has faced significant challenges in recent months. Tencent cited these difficult market conditions as the primary reason for the layoffs at Sharkmob London, with the company emphasizing that the decision was made in line with broader industry trends. In a statement, Tencent said:
“In line with many studios, Sharkmob has been impacted by the difficult conditions across the video game market.”
This follows a wave of similar cost-cutting measures and workforce reductions across the gaming sector, as studios attempt to navigate financial pressures, rising development costs, and shifting player behavior.
The Impact on Sharkmob London
While the exact number of affected employees remains unconfirmed, some reports, including from Pocket Gamer, suggest that a majority of the team at Sharkmob London may have been let go. However, this information has not been officially verified, leaving the true extent of the layoffs unclear.
In addition to the layoffs, the studio also faced the cancellation of an unannounced game, a decision made in response to the financial difficulties posed by the market downturn.
Sharkmob’s Malmö Studio Unaffected
While Sharkmob London faces a challenging period, it’s important to note that Sharkmob’s Malmö studio remains unaffected by the recent layoffs. The studio is continuing work on its upcoming game, Exoborne, a project that has generated interest for its unique mix of multiplayer and PvE mechanics. As the London studio absorbs these cuts, the Malmö team is moving forward with a focus on developing new content and expanding its game portfolio.
Sharkmob’s Acquisition by Tencent
This reduction in headcount comes nearly four years after Tencent acquired Sharkmob in 2019 for an undisclosed sum. At the time, the acquisition was seen as a strategic move by Tencent to further expand its global gaming presence, adding to its already significant portfolio of gaming companies. Sharkmob, known for its work on Mavericks: Proving Grounds and other projects, was viewed as a strong acquisition given its potential to bring innovative multiplayer experiences to Tencent’s growing ecosystem.
However, the challenges facing the industry today have made it difficult for many studios, including Sharkmob, to maintain their momentum.
What’s Next for Sharkmob?
As the dust settles from the layoffs at Sharkmob London, attention will likely turn to how Sharkmob navigates its next steps. With the Malmö studio continuing its work on Exoborne, the future of the company will largely depend on how well it can adapt to the ongoing market pressures and whether it can maintain its creative and development momentum.
For Tencent, the challenge will be balancing its global expansion ambitions with the need to ensure that the studios under its ownership remain profitable and sustainable amid shifting industry dynamics.
Key Points:
1. Layoffs at Sharkmob London:
• Tencent confirms a reduction in headcount at Sharkmob’s London studio due to challenging market conditions.
2. Market Impact:
• The layoffs are part of a wider trend affecting the video game industry, as many studios face financial pressures and other difficulties.
3. Consultation Period and Game Cancellation:
• The decision follows a consultation period at Sharkmob London and resulted in the cancellation of an unannounced game.
4. Sharkmob Malmö Unaffected:
• Sharkmob’s Malmö studio, working on Exoborne, is not impacted by the layoffs and continues development without disruption.
5. Tencent’s Acquisition:
• Tencent acquired Sharkmob in 2019, but the studio has since faced financial difficulties exacerbated by broader market trends.
6. Unconfirmed Layoff Numbers:
• While Tencent did not disclose exact numbers, reports suggest a majority of the London-based team may have been laid off, though this remains unconfirmed.
7. The Road Ahead:
• Sharkmob will need to navigate these challenges, with a focus on its remaining projects and the success of its Malmö studio’s ongoing work.
Tencent Confirms Layoffs at Sharkmob London Amid Challenging Market Conditions
