Godfall Developer Shuts Down: Report

Author : Stella May 13,2025

Godfall Developer Shuts Down: Report

Summary

  • Counterplay Games, the developer behind Godfall, may have shut down.
  • A LinkedIn post from an employee at another studio suggests that Counterplay Games has 'disbanded.'
  • Godfall struggled to retain a player base due to repetitive gameplay and a lackluster story.

Counterplay Games, the studio behind the PS5 launch title Godfall, may have quietly ceased operations. A LinkedIn post from an employee at Jackalyptic Games, shared by PlayStation Lifestyle, hints that Counterplay has 'disbanded.' The studio has remained silent since Godfall's 2020 release and hasn't announced any new projects.

Despite being one of the first titles announced for the PlayStation 5, Godfall failed to captivate gamers. Even after a significant update in 2021, the game suffered from repetitive gameplay and a weak narrative, which led to poor sales and a dwindling player base. Although the game received some positive feedback, its overall performance might have been too challenging for Counterplay to overcome.

The LinkedIn post suggests that Jackalyptic Games was working with Counterplay on a new title, but the project did not progress into 2025, leading to Counterplay's disbandment. This event may have occurred around the end of 2024, given the timing mentioned in the post. Counterplay has yet to comment officially on the situation, but their silence since Godfall's Xbox release in April 2022 makes this development less surprising.

Counterplay Games May Be the Latest in a String of Studio Shutdowns

If confirmed, Counterplay Studios would join a series of recent studio closures in the gaming industry. Sony previously shut down Firewalk Studios shortly after the release of Concord in September 2024, and in October of the same year, Sony closed mobile developer Neon Koi to focus on more successful ventures. Unlike these closures, Counterplay's potential end wouldn't be due to a parent company's decision but rather the challenges of surviving in today's competitive market.

Developing games has become increasingly costly, with higher expectations from both players and shareholders. This environment makes it particularly tough for smaller indie studios to succeed without the backing of larger corporations. Even anticipated titles aren't immune, as evidenced by 11 Bit Studios' layoffs in late 2024 due to profitability issues. While the specific reasons for Counterplay's reported closure remain unclear, similar industry pressures may have contributed. Without an official statement from Counterplay, fans should await further updates. However, the outlook currently appears grim for those hoping for new releases from the studio or further support for Godfall.