Summary

• Counterplay Games, the developer of Godfall, may have shut down.
• An employee from another studio indicated on LinkedIn that Counterplay Games has 'disbanded.'
• Godfall struggled to maintain a player base due to repetitive gameplay and a lackluster story.

Counterplay Games, the studio behind the PlayStation 5 launch title Godfall, appears to have quietly shut down. This news comes from a LinkedIn post by an employee of Jackalyptic Games, shared by PlayStation Lifestyle, which mentioned a collaboration with Counterplay that didn't reach 2025, leading to the studio's disbandment. Since the release of Godfall in 2020, Counterplay has remained silent on new projects and has not made any official statements regarding its status. The last significant update from the studio was the release of Godfall on Xbox in April 2022.

Despite being the first game announced for the PS5, Godfall failed to captivate gamers. Even after a major update in 2021, the game was criticized for its repetitive gameplay and weak narrative. As a result, it didn't sell well and struggled to maintain a dedicated player base. While not entirely panned, the game's underwhelming performance may have contributed to the studio's demise.

If confirmed, Counterplay Games would join a growing list of studios that have shut down recently. Sony, for instance, closed Firewalk Studios shortly after the release of Concord in September 2024 and shuttered mobile developer Neon Koi in October of the same year to focus on more successful projects. Unlike those cases, Counterplay's potential closure would not be due to actions by a parent company but would reflect the broader challenges facing the gaming industry. The increasing costs of game development and high expectations from both players and shareholders make it particularly difficult for smaller studios to succeed. Even anticipated titles like those from Frostpunk developer 11 Bit Studios have faced layoffs due to profitability issues. While the exact reasons for Counterplay's reported end remain unclear, similar industry pressures may have played a role. Fans are encouraged to await an official statement from the studio, but for now, the future looks uncertain for those hoping for new releases from Counterplay or further support for Godfall.