Evening Star Studio Lays Off Six Employees Amid Volatile Gaming Industry Conditions

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Evening Star Studio, the developer behind Penny's Big Breakaway, has announced the layoff of six employees due to the "volatile" nature of the gaming industry. Penny's Big Breakaway is a 3D platformer created by former developers of Sonic Mania, using Evening Star Studio's proprietary Star Engine and published by Private Division.

At one point, Evening Star was considered for developing a potential follow-up to Sonic Mania. However, due to the studio's focus on creating an original IP, plans for Sonic Mania 2 fell through. As a result, Sega and Sonic Team partnered with Arzest to develop Sonic Superstars, while Evening Star concentrated on Penny's Big Breakaway. Despite the success of Penny's Big Breakaway, the studio has been impacted by the gaming industry's volatile conditions, leading to the recent layoffs of six employees.

Evening Star's Chief Technology Officer, Hunter Bridges, announced the layoffs on Twitter, followed by a LinkedIn post from CEO Dave Padilla. Both expressed regret over having to let go of employees, with Bridges noting that it was not a decision they wanted to make. Padilla explained that the studio's inability to secure a new project to keep the team together contributed to the layoffs, a reflection of the broader struggles affecting many developers across the gaming industry.

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Bridges and Padilla emphasized that this was a difficult decision and that they regretted having to let go of talented team members, including 3D artists, gameplay engineers, designers, and a producer who contributed to Penny's Big Breakaway. They also shared that they are actively helping the affected employees find new job opportunities.

Layoffs have become increasingly common in the gaming industry over the past few years, with major companies like Microsoft, Sega, and EA cutting staff throughout 2024. Earlier in September, Microsoft laid off 650 employees from its gaming division, including roles at Activision Blizzard. This follows a series of job cuts at Microsoft-owned studios, including Crash Bandicoot developer Toys for Bob and Call of Duty support studio Sledgehammer Games, after Microsoft’s acquisition of Activision Blizzard last year. Smaller indie studios like Evening Star have also been impacted by these turbulent times, with more than 13,000 developers and publishers losing their jobs in the gaming industry as of September.