In a move that mirrors the current volatility of the games industry, Funcom, the developer behind the survival MMO Dune: Awakening, has announced plans to lay off an unspecified number of staff as part of a studio-wide restructuring.

This decision comes despite the company touting the recent launch of Dune: Awakening as “the biggest release we’ve had in our 32-year long history,” a fact that underscores the difficult economic realities facing the development sector.

The Studio’s Rationale for the Redundancies

Funcom, which is owned by Tencent, released a statement explaining that the layoffs are necessary to “restructure our teams and focus our resources from across projects and studios.” This strategic pivot is driven by two main factors:

• Transition to Live Operations: The studio is shifting from the intensive, large-team phase of initial game development to the long-term live operation of the MMO, which typically requires a smaller, more focused team dedicated to content updates and maintenance.
• Console Release Preparation: Funcom is also building towards a major console release for Dune: Awakening next year, which necessitates a reallocation of resources and expertise across their studios.

The company acknowledged the difficulty of the situation, stating, “Unfortunately, this also means having to say goodbye to cherished colleagues,” and confirmed they are working to find new opportunities for those affected. However, the exact number of staff impacted by these job cuts has not been disclosed.

Context: A Widespread Industry Trend

This situation, where successful launches are followed by layoffs, has become a depressingly familiar pattern in the video game industry. Many studios ramp up hiring during the multi-year production phase of a major title, only to downsize once the game enters the live service phase—even when the launch itself is deemed a commercial success. The ongoing cuts highlight the pervasive need for cost-reduction and resource refocusing across the industry, even for titles that achieve massive player milestones.

Funcom remains committed to the future of Dune: Awakening, stating the game “has already shown incredible potential” and their focus will be on releasing new content, features, and enhancements for the MMO’s long-term roadmap.

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