Digital Bros. and 505 Games in Restructuring Process
Digital Bros. and its publishing subsidiary, 505 Games, are currently undergoing a restructuring process that is affecting their offices throughout Europe. This news comes after last year’s announcement of layoffs that resulted in 30% of the workforce being let go, particularly employees from development studios.
According to Gamereactor, similar to actions taken by other major gaming companies like EA, Activision, and 2K Games, 505 Games is now without local representation in its European subsidiaries. This means that offices in Germany, Spain, and France are closing after many years of activity, resulting in the loss of important marketing, communication, and relations functions.
While the number of employees affected by this round of layoffs is smaller than last year, it still represents a significant loss of direct territorial relationships for the company.
Despite the restructuring, projects such as Control 2, Assetto Corsa 2, and Project Iron are still in development. There is also uncertainty surrounding the status of these projects given the recent changes within the company.
One significant development is Remedy Entertainment acquiring the rights to Control for its sequel, a project that was originally being developed in partnership with 505 Games. Additionally, the release of Assetto Corsa 2, a highly anticipated racing game, may be impacted by the changes within 505 Games.
Lastly, the future of Project Iron, a dark fantasy AAA game developed by MercurySteam and set to be published by 505 Games, remains uncertain. The game was expected to be released in late 2024 or early 2025, but the restructuring within the company may have implications on its development and release.