Zynga closes Echtra Games, the developer behind Torchlight

Zynga has confirmed it will wind down operations at its division, Echtra Games.
An announcement to IGN mentioned that the decision to close the studio, known for developing Torchlight 3, aligns with a strategic realignment concerning its "resources and priorities".
The company stated, "Zynga has decided to end operations at its Echtra Studio, halting progress on pending projects and downsizing positions."
This move is part of broader strategic adjustments in the firm's focus. The company added that it would engage with affected staff to ensure they are treated properly during this transition.
Echtra Games, based in San Francisco, was established in 2016 by Max Schaefer, who previously co-founded Blizzard North and contributed to the creation of Diablo.
In 2018, after Runic Games shut down in 2017, Echtra Games breathed new life into the Torchlight series with the online game Torchlight Frontiers.
Zynga acquired Echtra Games in 2021, though the financial terms were not disclosed. In 2022, Zynga itself became part of Take-Two Interactive through an acquisition.
Recently, Zynga revealed plans to end Star Wars: Hunters, a game developed by NaturalMotion, a subsidiary of Zynga. Earlier reports in October indicated that NaturalMotion might have reduced its workforce in both the UK and the US.
As communicated to GamesIndustry.biz, the developer reviewed its operations in the UK and US, potentially affecting several positions, aiming for sustainable long-term growth and alignment with future development goals.
Take-Two Interactive has also made plans to lay off 5% of its staff by the end of 2024, which could impact approximately 580 employees.