Toadman Interactive has ceased operations, and Piranha Games is experiencing layoffs

Enad Global 7 (EG7), a Swedish gaming company, announced the closure of Toadman Interactive and reduction of 38 positions at Piranha Games last week.

The shutdown of Toadman Interactive is attributed to "ongoing challenges in the industry and the studio's inability to secure contracts at the necessary pace," according to EG7.

Current contracts, involving projects such as Daybreak and Cold Iron, will continue through a transition completing in the latter half of 2025.

This move impacts 69 employees and subcontractors, though 42 will remain to complete existing project obligations.

Previously in September, Toadman shut down its offices in locations including Stockholm, Visby, and Oslo, along with staff reductions in Berlin.

Regarding Piranha Games, the layoff of 38 employees aligns with a "business optimization plan" following the launch of MechWarrior 5: Clans.

EG7 CEO Ji Ham praised Piranha for delivering a game that excelled in quality, narrative, and gameplay, yet acknowledged it did not attract new players as anticipated, prompting financial reassessment.

In early 2020, Toadman, publisher Sold Out, and creative agency Petrol merged to create EG7. Later that year, EG7 acquired Piranha Games for $24.1 million.