Reports indicate that Counterplay, the developer behind Godfall, has ceased operations

The creator of Godfall, Counterplay Games, appears to have closed its doors.

Although there has been no official word from the company, a report by PlayStation Lifestyle suggests that this information was found on LinkedIn, indicating the studio "disbanded" after failing to sustain a collaboration with Jackalyptic.

The discovered message started by expressing that for the last half-year, their project with Jackalyptic benefited immensely from the expertise of Counterplay's developers.

"They approached the project with great commitment from the outset," the post continued.

Ultimately, the message noted the inability to extend the partnership into the following year, leading to the disbandment of Counterplay Games, and shared details of those affected. The post has since been revised to exclude the closure remark.

The extent of the impact on staff numbers remains uncertain.

Despite receiving support from Gearbox, the only game released by Counterplay, Godfall, developed with Disruptive Games for the PS5, garnered mixed responses from critics and players alike.

Job losses at gaming studios have been mounting since last year and continue into 2025. Recently, it was reported that Freejam, the studio behind Robocraft 2, has closed. Additionally, the Swedish company Enad Global 7 (EG7) made moves to "wind down" Toadman Interactive, leading to 69 job losses as well as 38 jobs being cut at Piranha Games.

In the early weeks of 2025, more than 150 developers have been laid off, including cuts at Splash Damage and Jar of Sparks.