Fantasy MMORPG Ashes of Creation, developed by Intrepid Studios, has abruptly collapsed just 52 days after its Steam Early Access release, leaving the game’s future in doubt. Following the launch, several senior team members resigned, and mass layoffs have been announced, signaling a major shake-up at the studio. Observers first noticed changes when multiple employees updated their LinkedIn status to ‘open for work,’ including Director of Communications and Marketing Margaret Krohn, who posted cryptically about the circumstances surrounding the company.
Founder, CEO, and Creative Director Steven Sharif shared a limited statement on the official Ashes of Creation Discord channel, explaining that control of the company had shifted away from him. Sharif indicated that the board made decisions he could not ethically support, prompting his resignation. After his departure, much of the senior leadership team also left, leading the board to issue WARN Act notices and initiate a mass layoff process. Sharif emphasized that the developers acted in good faith and deserved better clarity and stability than what they currently face, while legal and governance matters prevent him from elaborating further.
Ashes of Creation was originally announced in 2016 and successfully funded through Kickstarter in 2017, raising over $3.2 million. The studio continued to offer pre-release access over several years, but development was slow, leading some users to voice skepticism about the project. In late 2021, Intrepid transitioned from Unreal Engine 4 to Unreal Engine 5 to modernize the game. The Steam Early Access launch last month, while technically still in Alpha, was controversial, with Sharif arguing that wider player feedback was essential despite the incomplete state of the game. Reception on Steam was mixed, with user reviews holding at 51 percent, reflecting dissatisfaction with the game’s unfinished condition.
Despite achieving a concurrent player peak of 31.8K at launch and estimated sales of 220K to 320K units, the financial outcome has been limited once Valve’s 30 percent revenue share is accounted for, leaving Intrepid Studios with between $7.7 and $11.2 million. Compounding concerns for backers, the original Kickstarter campaign had promised full refunds if the game failed to launch, a commitment now questioned as the game did release, leaving some to debate whether the pledge was more symbolic than legally enforceable. The abrupt closure of Ashes of Creation adds to a series of challenges for Western MMORPGs following high-profile difficulties with titles like Amazon’s New World, highlighting the risks developers face when releasing large-scale online games prematurely. Industry veterans continue to suggest incremental approaches, as exemplified by games such as Warframe, for sustainable development and long-term player engagement.
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