Metroid Dread developer MercurySteam has announced layoffs at the company, which it is referring to as a “workforce adjustment process.” MercurySteam partnered with Nintendo on Metroid Dread in 2021, and prior to that, released Metroid: Samus Returns on the 3DS in 2017. While the company is an independent studio, it has worked closely with major publishers like Nintendo and Konami over the years.
Following Metroid Dread, MercurySteam released Blades of Fire in 2025. As an original IP, Blades of Fire was made available on PS5, Xbox Series X/S, and PC, skipping Nintendo Switch. Published by 505 Games, the title struggled to find an audience, and parent company Digital Bros. noted in a press release that the game’s underperformance led to “higher-than-expected write-offs.”
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Layoffs at MercurySteam
In a post on LinkedIn, MercurySteam announced layoffs at the company. The Metroid Dread developer noted that these types of layoffs are common in the video game industry between production cycles, while also saying that it’s “nonetheless a difficult and painful situation.” The studio has not indicated how many people have been laid off, but did note its commitment to finding new work for those affected by the situation. MercurySteam’s post also includes an email address for potential hirers to reach out about recruiting employees that were laid off from the studio.
Who’s That Character?
Identify the silhouettes before time runs out.
Identify the silhouettes before time runs out.
Easy (7.5s)Medium (5.0s)Hard (2.5s)Permadeath (2.5s)
Layoffs have become an unfortunately common problem in the video game industry over the last few years. Companies of all sizes have been affected, with even Epic Games announcing mass layoffs back in March. It’s a troubling sign overall, and it remains to be seen what impact these layoffs will have on the industry as a whole. Fewer people working on video games will inevitably result in fewer games being released. That won’t be good for workers or consumers, and could lead to some talent leaving gaming for positions in other industries. Some pundits have even predicted that the video game industry is headed for a major crash.
The phrasing in MercurySteam’s announcement does offer hope that the studio is not in imminent danger of shutting down. The company seems to imply that it simply doesn’t need as many workers at the moment, following the release of Blades of Fire. It’s unclear what the studio’s next project will be, but MercurySteam is rumored to be working on a Super Metroid remake. That project’s existence has not been confirmed, but Nintendo seems to have a high level of trust in the studio, after releasing two well-received Metroid games. It’s entirely possible that the studio could be working on something related to the series, but there’s no way of knowing for sure.
Rearrange the covers into the correct US release order.
Rearrange the covers into the correct US release order.
Easy (5)Medium (7)Hard (10)
Hopefully, MercurySteam’s layoffs won’t see too many people affected, and those seeking work will be able to quickly find new places of employment. Metroid Dread was a Game of the Year candidate in 2021, which says a lot about the level of talent at the company. It’s unfortunate how frequent layoffs have been happening in the video game industry in such a short amount of time, but it doesn’t seem like this pattern will be ending anytime soon.
- Released
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October 8, 2021
- ESRB
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T for Teen: Animated Blood, Fantasy Violence
- Publisher(s)
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Nintendo
