TinyBuild is the latest company to deal with a tough market as it shut down indie game publisher Versus Evil and laid off 13 staff.
The company announced the shutdown today and employees took to social media, saying that all the staff had been cut today, just before the holidays.
The layoffs come shortly after general manager Steve Escalante left Versus Evil, which was founded in 2013 and published the title The Banner Saga and Pillars of Eternity 2: Deadfire.
Versus Evil’s former owner Stall Proof had previously sued TinyBuild over payment of earnouts which were part of a purchase agreement when TinyBuild acquired Versus Evil in 2021.
As a result of a settlement, TinyBuild paid $3.5 million and legal costs to settle the claims. Meanwhile, a number of Versus Evil titles had been delayed beyond this year and TinyBuild said it was going to miss its financial targets.
TinyBuild said this week it had a deal with Atari for an investment round, and it said it was attempting to raise $14 million in that round. But the funding hasn’t closed yet.