Observed Signal · Nov 12, 2026 · Company Formation · Source: GamesIndustry.biz · Impact: 1/5 · Sentiment: Positive
Ex-Id Software Devs Form Employee-Owned Studio Hidden Horses
A group of more than 20 former Id Software developers, artists, and designers affected by Xbox's mass layoffs have formed Hidden Horses, an independent, employee-owned game studio. The studio aims to give staff ownership stakes and empower individual developers while maintaining focused decision-making. Hidden Horses is launching a Kickstarter campaign to fund its first project, a single-player FPS game titled 'Danger Pay'. The funds will cover licenses, hardware, and healthcare. The studio's formation comes after approximately 136 Id employees were laid off in July, raising concerns about the maintenance of proprietary game engines. Co-founders Andrew Willis and Regan Carver expressed motivations ranging from shared success to escaping corporate uncertainty.
The formation of an independent game studio by former Id Software employees is relevant to the gaming industry but has limited direct impact on the AdTech/MarTech ecosystem.
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Key Takeaways & Evidence Grounding
- Over 20 former Id Software developers formed employee-owned studio Hidden Horses.
- Hidden Horses is launching a Kickstarter campaign for its first project, the FPS 'Danger Pay'.
- The studio was formed following Xbox's mass layoffs, which affected approximately 136 Id employees in July.
- Co-founders include Andrew Willis (executive producer) and Regan Carver (rendering programmer).
Connected Companies & Entities
“A group of Id Software developers affected by Xbox's mass layoffs have formed an independent, employee-owned studio called Hidden Horses.”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Alpha Dog Games Returns to Independent Ownership
Alpha Dog Games, the Nova Scotia studio behind Mighty Doom, has returned to independent ownership under its founders. The studio had been acquired by ZeniMax Media in October 2019 and became part of Xbox Game Studios after Microsoft's $7.5bn purchase of ZeniMax; it was later closed by Microsoft in 2024 during broad cuts and its title Mighty Doom was pulled from stores. Founder Shawn Woods updated his LinkedIn stating that as of May 2025 the studio is "independently owned, again," a point later confirmed to Kotaku. Alpha Dog says it has invested in its technology and is open to partnerships, publishers and licensors. AppMagic data cited in the article reports Mighty Doom generated around $7m in revenue with over 7.4m lifetime downloads since launch in March 2023.
Launchable launches shared-success platform for indie studios
Launchable, a new platform founded by industry veterans, aims to connect independent game studios with development talent and publishing services through a 'shared-success framework'. Instead of upfront payments, developers receive a revenue share for the first five years after a game's launch, with terms negotiated directly between parties. Launchable takes a small percentage of project revenue for its matching service. The platform targets projects that are already well-developed but lack funding or specialist resources to reach the market. Seven studios have already signed up, including Bossa Studios and Hyper Luminal Games, with plans to onboard 30 more in a closed beta. The platform emphasizes quality vetting, transparency on ship dates, and milestone tracking, aiming to reduce risk for both talent and studios. However, the model's success hinges on whether developers are willing to accept deferred compensation and the inherent risk of game failure.
11 Bit Studios lays off 20 employees
11 Bit Studios has laid off around 20 employees as it restructures teams ahead of a new production cycle. The studio said the changes were made to align team structures with current project phases; most affected staff were transferred to other internal roles while those leaving will receive support. 11 Bit Studios stated its financial position remains stable and that redundancies related to roles not required for early-stage projects were necessary to manage costs. The cuts follow previous layoffs in 2023 (eight employees) and additional undisclosed reductions in 2024 after cancelling a title codenamed Project 8.
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