Palia Developers Forced to Make Difficult Layoffs Weeks After Game’s Steam Launch

Palia's developers make tough staffing cuts as the cozy life sim faces post-launch growing pains

Just weeks after the launch of their cozy life simulation game Palia on Steam, developers Singularity 6 have been forced to make the difficult decision to lay off approximately 35% of their workforce. This amounts to around 49 employees, a significant portion of the talented team that brought the free-to-play title to life.

In a statement to Polygon, Singularity 6 cited the need to “deliver the highest-quality gameplay service for long-term stability” as the driving factor behind the layoffs. The studio said it carefully considered its “development and business needs” in order to support Palia and its community moving forward.

“The decision was not made lightly,” the statement read, “and comes after careful consideration of our development and business needs to support Palia and its community. We value their contributions and are committed to supporting them throughout this process, including severance, work-placement and career guidance assistance, and retainment of all company-provided development equipment.”

Palia, which had been available in beta form on the Epic Games Store since last year, launched on Steam on March 25th to a “Mixed” rating from players. Several reviews cited persistent bugs and a reliance on timers that slowed the game’s progression. The title also faced some confusion around its exact development status, as it is not officially marked as an “Early Access” game on Steam despite still being in beta.

The layoffs at Singularity 6 are the latest in a string of high-profile staffing cuts that have devastated the games industry over the past 18 months. Just this week, newly independent studio Relic also announced layoffs, underscoring the volatility and instability plaguing the sector.

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“We remain committed to delivering passion in imagination, and maintaining the dedication and creativity that our community expects and deserves,” Singularity 6 assured in their statement. But with nearly half their workforce gone, the road ahead for Palia and its developers appears uncertain.

As the games industry continues to grapple with economic headwinds and post-pandemic challenges, the fate of Palia and other ambitious projects hangs in the balance. For the talented individuals impacted by Singularity 6’s layoffs, the road ahead is undoubtedly difficult. But the studio has promised to provide support, severance, and career guidance to those affected – a small consolation in an increasingly turbulent games landscape.

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