MechWarrior 5: Clans devs fell victim to layoffs. Game sale didn't satisfy publisher
Enad Global 7 Group is shutting down the Toadman Interactive team and conducting another wave of layoffs among the developers of MechWarrior 5: Clans and MechWarrior 5: Mercenaries.
Piranha Games and Toadman Interactive are the latest studios to be added to the extensive list of teams that have been shut down or reduced in size in recent years.
The Swedish company Enad Global 7 (owner of the rights to the MechWarrior and I.G.I. Origins series) has published two announcements about restructuring within the mentioned teams. The first announcement concerns the closure of Toadman studio as part of the company's "long-term strategy."
Change of name
Ironically, the branch, which will soon cease to exist, inherited its name from the parent company. Enad Global 7 was founded in 2013 as Toadman Interactive, and it initially operated as a team for contract work, assisting other developers in developing games.
The company only began producing its own projects in 2017, and the following year, inspired by another "Nordic" publisher, it started acquiring other studios and brands. As a result, in 2020, the company underwent an overhaul and was renamed Enad Global 7. Toadman Studios (later changed back to Toadman Interactive) remained as the team name, continuing to focus on supporting other developers.
The decision to close the studio was preceded by many actions aimed at finding savings in order to keep the company alive. Apparently, these efforts proved to be insufficient, even though in April 2024 Toadman Interactive took over PlanetSide 2, and a year earlier Cold Iron studio's new multiplayer game (Aliens: Fireteam Elite).
MechWarrior 5: Clans disappointed by lack of marketing?
Even more painful could be the layoffs at Piranha Games following the disappointing sales of MechWarrior 5: Clans. The latest installment in the iconic series was well-received by both players and critics, but seemingly not enough to exceed the results of Armored Core VI: Fires of Rubicon, which came out a year prior. Moreover, as reported by one of the affected developers, this is the second wave of layoffs in the studio.
It's worth noting that since August 2024, FromSoftware's mechs have found a million buyers. This is a good result, but it pales in comparison to Elden Ring and its expansion. This second one only needed a week to reach players in 5 million copies.
So it's not hard to guess that sales of MechWarrior 5: Clan must have been even less impressive. Especially since - as Battletech brand fans claim - the publisher didn't make an effort to advertise the game of Piranha Games studio. According to the players, this is supposed to be the reason why, quoting the publisher, "the game failed to reach new audiences and expand its core audience as anticipated."
Of course, this is only part of the problem. The gaming industry is facing challenges, resulting in tens of thousands losing their jobs in 2024 alone. Many publishers have decided to focus on their "key brands" and a more long-term strategy. In practice, this means limiting investment in new and less profitable projects - for instance, in a relatively niche series about mechs.
In the case of Piranha Games, being available on Xbox Game Pass on day one could also have been a problem. If recent reports are to be believed, such a strategy doesn't positively affect game sales. Especially in the case, let's highlight once more, of a relatively niche title, which was also a rather costly purchase at launch.
More:MechWarrior 5: Clans Returns to the Roots; Release Date and Requirements
