505 Games Shutdowns Multiple Offices Across Europe

505 Games, a Milan-based publisher, is currently facing downsizing with the closure of offices in Germany, Spain, and France. This decision comes shortly after Remedy Entertainment acquired the full rights to Control, a game published by 505 Games in 2019, for 17 million euros.

Known as one of the industry's leading mid-tier third-party publishers, 505 Games has a history of releasing a diverse range of AA games. Titles such as the Sniper Elite series, Payday 2, Don't Starve, and Bloodstained: Ritual of the Night have been part of its portfolio. Additionally, 505 Games has published highly successful games like Terraria, Rocket League, and the Xbox One port of No Man's Sky. More recently, the publisher handled the PC port of Death Stranding by Hideo Kojima and the release of Control by Remedy Entertainment.

Per a report by Insider Gaming, 505 Games is closing down its offices in Spain, France, and Germany. Despite the initial concern, only ten employees have been impacted by these closures. The parent company, Digital Bros, has observed a shift in gamer behavior towards playing established IP for longer durations. This has led them to prioritize high-quality and successful titles. While not explicitly stated, it appears that Digital Bros and 505 may be shifting focus towards publishing long-term live service games. While 505 has previously released successful titles like Rocket League, their more popular releases have typically been single-player games.

ghostrunner 2 - It's difficult to say what the closure of these offices will mean for 505 Games moving forward

It's uncertain how the closure of these offices will impact the future of 505 Games. With only ten employees reportedly laid off, the remaining staff may transition to remote work or relocate to 505's headquarters in Milan. While this news is disheartening, the closure of 505's offices is not unexpected given the current layoff crisis in the video game industry. Major companies like Xbox and PlayStation have already let go of hundreds of employees in 2024, resulting in thousands of lost jobs. Although 505's office closures may not significantly add to this figure, it is indicative of the challenges faced by the industry as a whole.

Will 505 Games Still Publish Control 2?

Remedy now owns the Control IP, raising questions about their previous publishing agreement with 505 for Control 2. With Epic Games as a potential new publisher, given their recent collaboration on Alan Wake 2, the future of 505 Games and their upcoming game releases is uncertain. The impact of office closures and a shift in strategy on the company's trajectory remains to be seen.

Editor's P/S:

The recent downsizing of 505 Games, a renowned publisher in the gaming industry, is a disheartening sign of the challenges faced by the sector. The closure of offices in Germany, Spain, and France, impacting only ten employees, may not seem significant, but it reflects a shift in the industry's landscape and consumer behavior. 505 Games' past success with single-player titles like Control and Sniper Elite may not align with the current focus on long-term live service games.

The uncertainty surrounding 505's future is further compounded by Remedy's acquisition of the Control IP, potentially leaving the publisher without one of its flagship titles. With the industry experiencing a layoff crisis, the closure of 505's offices serves as a reminder of the volatility and competitive nature of the gaming market. It remains to be seen how 505 Games will navigate these challenges and adapt to the changing landscape of the industry.