Supermassive Games Confirms 36 Layoffs, Delays Directive 8020 to 2026

The relentless wave of restructuring within the gaming industry has claimed another casualty. UK-based developer Supermassive Games announced significant workforce reductions and a major game delay today, confirming 36 employees were laid off and its sci-fi horror title Directive 8020 is postponed until 2026.

Supermassive Games Layoffs: Prioritizing Support Amid Restructuring

In a statement posted on its official X account (formerly Twitter), the studio behind hits like The Quarry and the Dark Pictures Anthology stated the layoffs were necessary to “adapt our team structure to better align” with the evolving and challenging video game landscape. The message emphasized the gravity of the decision: “This decision was not taken lightly, and we know this will be an incredibly difficult time for everyone. Our absolute priority will be to offer full support to all those affected.” This marks the second round of job cuts at Supermassive in 2024, following layoffs affecting roughly 90 staff (approximately 30% of its workforce) in February, also attributed to industry pressures. The studio reiterated its commitment to supporting departing employees during this transition.

Directive 8020 Release Pushed to First Half of 2026

The announcement delivered a significant blow to fans eagerly awaiting Directive 8020. Originally revealed at Gamescom 2023 with an October 2, 2025, release date, the cinematic sci-fi horror adventure is now slated for launch in “the first half of 2026.” Supermassive cited the need for additional development time despite positive reception: “The response to the game so far has been fantastic, and this additional time will help us deliver the very best experience for our fans. We’re deeply grateful for the patience and support of our community.” The delay underscores the development challenges studios face, even after securing positive early buzz.

Little Nightmares III Development Remains on Track

Amid the restructuring and Directive 8020 delay, Supermassive offered a glimmer of certainty for another major project. The studio confirmed that the development of Little Nightmares III, co-developed with Until Dawn developer Supermassive Games and published by Bandai Namco, remains unaffected. Its release date of October 10, 2025, stands firm. The statement explicitly noted the layoffs have “no impact on the development of Little Nightmares III,” assuring fans that the anticipated sequel to the beloved puzzle-platformer horror series is still progressing towards its Halloween-season launch.

The Wider Context of Industry Instability

Supermassive’s announcement reflects a turbulent period for the global games industry. Numerous studios, including giants like Microsoft Gaming and Sony Interactive Entertainment, have implemented significant layoffs throughout 2023 and 2024, citing economic pressures, post-pandemic course correction, and the complexities of managing large-scale development and live-service operations. Independent developers face particular challenges securing funding and navigating market saturation. Industry analysts, such as those cited in the February 2024 GamesIndustry.biz report on Supermassive’s initial layoffs, highlight consolidation and cautious publisher investment as key factors.

The human cost of industry shifts remains stark, with talented individuals bearing the brunt. While Supermassive Games aims to realign for future stability and deliver polished experiences like Directive 8020 in 2026 and Little Nightmares III this October, today’s news underscores the persistent volatility facing developers. Support impacted workers by connecting with industry advocacy groups like Game Workers Unite and following reputable industry news sources for updates.

Must Know

Q: How many people were laid off at Supermassive Games?
A: Supermassive Games confirmed 36 employees were laid off in this latest round of job cuts. This follows a larger reduction of approximately 90 staff members in February 2024.

Q: Why was Directive 8020 delayed?
A: Supermassive stated the delay to the first half of 2026 is to ensure they “deliver the very best experience” for players. They cited the fantastic response so far and expressed gratitude for community patience, indicating the extra time is for development refinement.

Q: Is Little Nightmares 3 still coming out in October 2025?
A: Yes. Supermassive explicitly stated the layoffs have “no impact on the development of Little Nightmares III.” Its release date remains October 10, 2025.

Q: What reasons did Supermassive give for the layoffs?
A: The studio attributed the layoffs to the need to “adapt our team structure to better align” with the changing and challenging video game industry landscape. This echoes similar reasoning given during their February 2024 layoffs.

Q: Is this part of a larger trend in gaming?
A: Unfortunately, yes. 2023 and 2024 have seen widespread layoffs across the industry, affecting companies large and small, driven by economic factors, post-pandemic adjustments, and market consolidation.