Studio releases statement claiming is taking a new direction

Red 5 admits walkout and layoffs

A number of developers have walked out of Californian outfit Red 5 Studios – while others have been told to leave – as the company reforms in its new direction.

A statement released by Red 5 confirmed rumours of disquiet at the company, though details on the matter were scarce. It was said that the company is left with around thirty staff, down from a suspected 100, but Red 5 has made no move to confirm or deny this.

The group confirmed it was working on an MMO, likely primed for the lucrative Chinese market.

A separate Kotaku report suggests that the firm’s new majority shareholder is the NASDAQ-listed Chinese publisher The9, with a source claiming that two of the company’s three founders have now left, as CEO Mark Kern sees the diminished company reorganised.

Red 5 was established back in 2005 by three former Blizzard employees, while its MMOFPS project was thought to have received substantial funding after securing an $18.5 million investment from Benchmark Capital and Sierra Ventures.

It is thought that work on the MMOFPS has been suspended indefinitely, though this has yet to be confirmed.

About MCV Staff

Check Also

[ICYMI] Develop:Brighton’s keynote speaker will be Team17’s Debbie Bestwick – “We came together as an industry and supported each other in a way I’ve never seen in over three decades”

Bestwick discusses how the pandemic impacted Team17, the importance of in-person events, her keynote and her outlook on the industry’s future