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MercurySteam Lays Off Staff After Blades of Fire Flop

5/13/2026

26 3 Full Breakdown

Summary

MercurySteam Announces Layoffs

MercurySteam announced on May 12, 2026 a workforce adjustment that will cause layoffs.
Its LinkedIn notice gave no staff count, called the cuts difficult, and offered an email to aid workers.
The layoffs follow the game Blades of Fire, whose poor sales led Digital Bros to write-offs and plan a Steam release on May 14, 2026.
MercurySteam, known for Metroid: Samus Returns (2017) and Metroid Dread (2021), has faced crunch and harassment accusations.

Summary

Epic Games Layoffs

Epic Games announced mass layoffs in March 2026, marking a major cut in the video-game industry.
Analysts warn that continued reductions could shrink the market, lead to fewer game releases, and push talent to seek jobs outside gaming.
Some pundits predict a major industry crash if the layoff trend remains unchecked.
MercurySteam is rumored to be developing a Super Metroid remake, showing Nintendo’s trust despite recent workforce cuts.

History

Historical Context

Like the 2008 video-game slump triggered by the global financial crisis, which forced Electronic Arts to cut 15 % of its staff (about 1,200 jobs) after a $1.5 billion revenue drop, the May 2026 MercurySteam layoffs and March 2026 Epic Games cuts reflect the same reliance on a few hit titles—roughly 10 % of games generate 90 % of industry revenue.

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MercurySteam Announces Layoffs

MercurySteam announced on May 12, 2026 a workforce adjustment that will cause layoffs.
Its LinkedIn notice gave no staff count, called the cuts difficult, and offered an email to aid workers.
The layoffs follow the game Blades of Fire, whose poor sales led Digital Bros to write-offs and plan a Steam release on May 14, 2026.
MercurySteam, known for Metroid: Samus Returns (2017) and Metroid Dread (2021), has faced crunch and harassment accusations.

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