{"id":7839,"date":"2026-06-17T16:48:10","date_gmt":"2026-06-17T16:48:10","guid":{"rendered":"https:\/\/delimiter.online\/blog\/kwalee-labs-shuttered\/"},"modified":"2026-06-17T16:48:10","modified_gmt":"2026-06-17T16:48:10","slug":"kwalee-labs-shuttered","status":"publish","type":"post","link":"https:\/\/delimiter.online\/blog\/kwalee-labs-shuttered\/","title":{"rendered":"Kwalee Labs Shuttered One Month After Luna Abyss Launch"},"content":{"rendered":"

A video game development<\/a> studio has been closed only weeks after releasing its first major title. Kwalee Labs, the developer behind the PC and PlayStation 5 shooter Luna Abyss, has been shut down by its parent company. The closure comes just one month after the game launched to positive reception.<\/p>\n

The studio was originally founded under the name Bonsai Collective. Kwalee, a UK-based video game publisher, purchased the studio out of administration in September of last year. The purchase was made to rescue the studio from financial difficulty and to complete work on Luna Abyss.<\/p>\n

Background of the Studio<\/h2>\n

Bonsai Collective was formed by a group of industry veterans. The team had been working on Luna Abyss for several years prior to the acquisition. The game is a first-person shooter set within a mysterious, alien megastructure. It draws inspiration from titles such as Metroid Prime and Doom Eternal.<\/p>\n

After the acquisition, the studio was rebranded as Kwalee Labs. The team was integrated into the larger Kwalee group, which is headquartered in Leamington Spa, England. Kwalee is best known for publishing mobile games as well as a growing portfolio of PC and console titles.<\/p>\n

Luna Abyss Launch and Reception<\/h2>\n

Luna Abyss was released on Steam for PC and on the PlayStation Store for PS5 in early February. The game received generally favorable reviews from critics. Players praised its unique art style, fluid movement mechanics, and engaging combat system. However, the game faced a mixed reception regarding its length and narrative depth.<\/p>\n

The studio’s closure was announced via a LinkedIn post by former creative director Benni Hill. Hill stated that all staff at Kwalee Labs have been made redundant. The post confirmed the shutdown was effective immediately.<\/p>\n

Industry Implications<\/h2>\n

This closure highlights the ongoing volatility within the video game development sector. Despite launching a commercially viable product, the studio was unable to sustain its operations under the current corporate structure. The timeline is notable as the shutdown occurred less than five months after the acquisition was completed.<\/p>\n

Kwalee has not released an official public statement regarding the reasons for the closure. Industry analysts suggest that economic pressures, changing market conditions, and the high cost of development may have played a role. The publisher may have determined that continuing to fund the studio was no longer financially feasible.<\/p>\n

What Happens Next<\/h2>\n

Former employees of Kwalee Labs are now seeking new employment opportunities. The intellectual property rights for Luna Abyss are expected to remain with Kwalee. It is unclear whether the game will receive further updates or patches going forward.<\/p>\n

Kwalee is expected to continue publishing its existing portfolio of mobile and console titles. The company has not indicated any plans for further studio closures at this time. The future of the Luna Abyss franchise remains uncertain.<\/p>\n

Source: GamesIndustry.biz<\/p>\n","protected":false},"excerpt":{"rendered":"

A video game development studio has been closed only weeks after releasing its first major title. Kwalee Labs, the developer behind the PC and PlayStation 5 shooter Luna Abyss, has been shut down by its parent company. The closure comes just one month after the game launched to positive reception. The studio was originally founded […]<\/p>\n","protected":false},"author":1,"featured_media":7840,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[388],"tags":[754,9207,9205,9206,2959,801],"class_list":["post-7839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-games","tag-game-development","tag-kwalee","tag-kwalee-labs","tag-luna-abyss","tag-studio-closure","tag-video-game-industry"],"_links":{"self":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts\/7839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/comments?post=7839"}],"version-history":[{"count":0,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts\/7839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/media\/7840"}],"wp:attachment":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/media?parent=7839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/categories?post=7839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/tags?post=7839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}