Hothead Games, a Canadian indie game studio known for mobile titles like Rivals at War and Kill Shot, has ceased operations. Founded in 2006, the studio, comprised of 51-200 employees, filed for bankruptcy following the failure of a major, unnamed project. This project, nearing completion with both mobile and console versions ready, ultimately fell apart due to a publisher withdrawing from the mobile contract, leading to the console version's cancellation as well.
Hothead's president, Ian Wilkinson, announced the closure on December 13th. The studio's recent work included free-to-play mobile games such as Big Win Football 2024 and Box Office Tycoon. Before its closure, Hothead attempted a pivot towards contract work and porting projects.
This shutdown follows a troubling trend in the gaming industry. According to journalist Mike Straw's publicly available data, over 14,850 job losses have been reported in 2024 alone, with several studio closures. Another recent example is Humanoid Origin, founded by Mass Effect co-creator Casey Hudson, which shut down due to unexpected funding issues while developing a AAA sci-fi title. Both Humanoid Origin and Hothead Games employed between 51 and 200 people. Even established studios like 11 Bit Studios (Frostpunk) have announced layoffs following project cancellations.