Observed Signal · Sep 7, 2026 · Layoffs · Source: PocketGamer.biz · Impact: 1/5 · Sentiment: Negative
Star Stable Entertainment Cuts 20% of Staff
Star Stable Entertainment, the Stockholm-based developer behind Star Stable Online and owned by Nordisk Games, has laid off approximately 20% of its workforce, potentially affecting up to 40 employees. Interim CEO James Watkins announced the layoffs, stating the move was necessary to reduce operating costs and refocus resources to secure the company's long-term future. The company has encouraged other studios to reach out to affected staff. Star Stable Online has generated around $23 million in in-app purchases since its 2022 full launch and about $500,000 per month. The layoffs reflect ongoing challenges in the gaming industry, following Nordisk Games' initial $18 million minority investment in 2018 and majority stake in 2021, and come shortly after the company's 15th anniversary.
Layoffs at a niche game developer are of limited relevance to the broad AdTech/MarTech industry, though it indicates industry-wide cost-cutting trends.
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Key Takeaways & Evidence Grounding
- Star Stable Entertainment laid off approximately 20% of its staff, potentially affecting up to 40 employees.
- Interim CEO James Watkins announced the layoffs, citing the need to reduce costs and secure long-term future.
- The company is owned by Nordisk Games, which took a minority stake in 2018 and majority in 2021.
- Star Stable Online has generated around $23 million in IAPs since 2022 and about $500,000 per month.
- The layoffs were reported on September 8, 2026, and the company has encouraged other studios to hire affected staff.
Ontology Mapping & Concepts
Related Market Signals & Shifts
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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.
Astragon closes successor studio Astragon Development
Simulation publisher Astragon Entertainment is closing Astragon Development, the German studio formerly known as Independent Arts Software. More than 40 employees are affected, with the company seeking socially responsible solutions. The closure is part of a strategic realignment following a series of cutbacks, including a withdrawal from physical distribution in January. The studio, founded in 1990, had worked on over 250 games and was acquired by Astragon in April 2023 for up to $3.9 million. The closure follows the full release of Seafarer: The Ship Sim, which received over $2 million in German federal funding but saw fewer players at launch than during early access. Astragon will continue updating the game. The move reflects ongoing consolidation in the games industry, impacting employees and development pipeline.
Auroch Digital lays off quarter of staff
UK-based game developer Auroch Digital has initiated a redundancy consultation process affecting approximately a quarter of its roles at the Bristol studio, which employs between 51 and 200 staff. In a LinkedIn post, the company cited a 'turbulent and uncertain time' for the games industry as the reason for restructuring, despite recent creative successes like Warhammer 40,000: Boltgun 2 and Starship Troopers: Ultimate Bug War!. Auroch expressed commitment to supporting affected employees and appealed to other studios to consider hiring them. The initial social media posts have been removed, and PocketGamer.biz has sought clarification. The studio, previously acquired by Sumo Group for $8.3 million in 2021, has recently been acquired by Roundtable Interactive and is expanding into mobile with Warhammer 40,000: Boltgun Boom. This follows other industry layoffs.
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