In a sudden and unexpected move, TinyBuild, a notable game publisher, has announced the closure of its indie publishing division Versus Evil, resulting in the layoff of all its staff. This closure, occurring just two years after Versus Evil’s acquisition by TinyBuild, adds to the growing list of layoffs and shutdowns in the video game industry in 2023.
The news of Versus Evil’s shutdown first emerged from the tweets of now-former employees. Lance James, the head of production, shared his surprise and disappointment over the abrupt end of a decade-long journey.
Community manager Christopher Trippi and product strategy director Francis Finke also confirmed the layoffs and closure through social media, emphasizing that the decision was made by parent company TinyBuild.
Versus Evil took to Twitter to officially confirm the closure, expressing gratitude for the years of support from their community and highlighting the end of their ten-year venture in bringing indie games to the market.
The Acquisition and Its Aftermath
Today is a sad day. After 10 wonderful years, Versus Evil is shutting its doors. We've loved bringing you the best indie games we could find & sharing so many happy memories with you all, our amazing community! From the bottom of our hearts, THANK YOU for everything! ♥️
— Versus Evil 🛡️ (@vs_evil) December 22, 2023
TinyBuild had acquired Versus Evil in 2021 for $12.5 million, with additional potential payouts. At the time, TinyBuild CEO Alex Nichiporchik had envisioned the acquisition as a means to expand the company’s reach across various game genres. However, the deal soon ran into complications.
A December 2023 trading update from TinyBuild included a $3.5 million settlement with Versus Evil’s founders over allegations of failing to meet certain obligations of the acquisition deal. These included capital contributions and other supports that were promised but allegedly not delivered.
Furthermore, Versus Evil’s performance post-acquisition was not up to expectations. Delays in releasing key titles, including the much-anticipated game ‘Broken Roads’, were cited as reasons for its underperformance.
A Wider Trend of Industry Layoffs
The closure of Versus Evil is part of a larger trend of layoffs and shutdowns across the gaming industry in 2023. Major companies like Electronic Arts, Take-Two, CD Projekt, and Epic Games have all announced significant staff reductions. Furthermore, the year saw the outright closure of several studios, including Volition, Campfire Cabal, and Free Radical Design, as part of the Embracer Group’s ongoing restructuring.
This wave of layoffs is not confined to the gaming industry alone. Large tech companies such as Microsoft, Amazon, and Meta (Facebook’s parent company) have also announced substantial layoffs, reflecting broader economic challenges and strategic realignments within the tech and gaming sectors.
