Godfall Developer Shuts Down: Report

Author : Ellie May 05,2025

Godfall Developer Shuts Down: Report

Summary

  • Counterplay Games, the developer of Godfall, may have shut down.
  • An employee from Jackalyptic Games indicated on LinkedIn that Counterplay has 'disbanded.'
  • Godfall struggled with repetitive gameplay and a lackluster story, leading to poor sales and a small player base.

Counterplay Games, the studio behind the PS5 launch title Godfall, appears to have quietly shut down. This information comes from a LinkedIn post by an employee of Jackalyptic Games, shared by PlayStation Lifestyle. The post suggests that Counterplay Games has 'disbanded' following the cancellation of a collaborative project that was not expected to reach completion by 2025. Counterplay has not made any official statements on the matter, but the studio has been silent since bringing Godfall to Xbox in April 2022.

Godfall, despite being the first game announced for the PlayStation 5, failed to capture a significant audience. Even after a major update in 2021, the game's repetitive gameplay and underwhelming narrative did not resonate with players. This led to poor sales and a struggling player base. While the reception wasn't entirely negative, the game's performance may have been a contributing factor to the studio's demise.

The potential shutdown of Counterplay Games adds to a worrying trend in the gaming industry. Sony recently closed Firewalk Studios shortly after the release of Concord in September 2024 and shut down mobile developer Neon Koi in October of the same year to focus on more successful titles. Unlike these studios, Counterplay's closure would not be due to a decision by a parent company but rather the challenges of surviving in today's competitive market.

The increasing cost of game development and the high expectations from players and shareholders have made it difficult for studios, especially smaller indie ones like Counterplay, to succeed. Even highly anticipated games are not immune, as evidenced by 11 Bit Studios' layoffs in late 2024 due to profitability issues. While the exact reasons for Counterplay's reported end remain unclear, similar industry-wide challenges likely played a role. The studio has not provided an official statement, and fans are encouraged to await further information. For now, the future looks uncertain for Godfall enthusiasts and those anticipating new projects from Counterplay.