Mortal Kombat’s NetherRealm Studios Is Laying Off Staff

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Mortal Kombat's NetherRealm Studios Is Laying Off Staff

Highlights

  • NetherRealm Studios has reportedly laid off around 50 employees, including its mobile team.
  • The layoffs at NetherRealm Studios come after Warner Bros. Discovery faced challenges with Suicide Squad: Kill the Justice League.
  • The developer is set to announce Year 2 plans for Mortal Kombat 1 at San Diego Comic-Con, following the addition of new fighters.

As a long-time fan of Mortal Kombat and follower of the gaming industry, I can’t help but feel disheartened by the recent news of layoffs at NetherRealm Studios. With at least 50 employees being let go, including its entire mobile team, it’s a blow not only to those directly affected but also to the Mortal Kombat community.

According to reports, NetherRealm Studios, the creators of “Mortal Kombat,” has let go of at least 50 employees, including their entire mobile team. Currently engrossed in developing “Mortal Kombat 1,” the twelfth mainline installment in the acclaimed fighting game franchise, NetherRealm Studios underwent this significant workforce reduction.

In 2024, the video game industry went through a significant wave of large-scale job cuts. Several studios under the ownership of major companies like Embracer Group, Microsoft, and Tencent were among those hit. Based on data from journalist Mike Straw’s publicly accessible count, approximately 11,000 people in the gaming industry have been let go so far this year. The latest round of layoffs originated from Warner Bros. Games.

Approximately 20% of NetherRealm Studios’ workforce, estimated to be around 50 employees, were let go according to recent reports from Insider Gaming. With a team size ranging from 51 to 200 as per their LinkedIn profile, this is a significant reduction. Among the affected staff was quality assurance analyst Tony Lazzara who announced that NetherRealm Studios’ mobile development team has been disbanded. The studio’s most recent mobile game, “Mortal Kombat: Onslaught,” released last October, is a beat ’em up RPG set in an alternate timeline.

NetherRealm Studios Layoff Numbers

Mortal Kombat's NetherRealm Studios Is Laying Off Staff
  • At least 50 people

During a earnings conference in February, Warner Bros. Discovery’s CFO Gunnar Wiedenfels warned investors that the gaming sector of the company might encounter challenges due to the underperformance of Rocksteady Studios’ “Suicide Squad: Kill the Justice League.” The title, which was released with mixed reviews and technical issues, resulted in a $200 million loss for Warner Bros. Discovery by May, according to later admissions. Critics and players alike found the game’s gameplay repetitive and uninteresting.

Warner Bros. Games not only houses NetherRealm and Rocksteady Studios, but also owns Avalanche Software from Hogwarts Legacy fame, and TT Games recognized for their LEGO series. Additionally, they operate studios in Boston, Montreal, New York, San Diego, and San Francisco.

As an excited fan, I can’t wait for NetherRealm Studios‘s panel at San Diego Comic-Con on July 26! This comes right after the release of Takeda Takahashi in Mortal Kombat 1 on July 23. The developers are going to share their plans for the game’s Year 2, which has already introduced five new main characters and four Kameo fighters since its launch last September.

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2024-07-19 13:43