Counterplay Games, the developer behind the PS5 launch title Godfall, has reportedly disbanded. The news comes from a LinkedIn post by a Jackalyptic Games employee, who revealed that a collaboration with Counterplay on a new project failed to move forward, resulting in the studio’s closure.
Despite being the first title announced for the PlayStation 5, Godfall struggled to find its footing. The game received mixed reviews due to its repetitive gameplay and underwhelming story. Even a major update in 2021 failed to revive its fortunes, with sales and player retention remaining low. After its last significant move—bringing Godfall to Xbox in April 2022—Counterplay became notably quiet.
Reports suggest that the studio may have shut down at the end of 2024. If true, Counterplay’s closure would add to the growing list of studio closures in the gaming industry. Recent examples include Sony’s decision to shut down Firewalk Studios and Neon Koi, citing resource reallocation and poor performance.
The rising costs of game development and increased pressure from players and shareholders have made survival challenging, especially for smaller studios. While the exact reasons for Counterplay’s reported closure are unclear, fans of Godfall and the studio’s work face an uncertain future.
Counterplay Games has yet to release an official statement, and until then, these reports remain unconfirmed.
