Parent firm Digital Bros. of 505 Games stated late in 2023 that it was reorganizing and would be laying off thirty percent of its staff. Even while the company is still planning to leave Germany, France, and Spain, it appears that some of the 505 Games offices are being closed. An extra ten firm workers may be impacted by the reported closure of these offices.
Gamereactor reported on the purported shutdown of 505 Games’ operations in France, Germany, and Spain. As stated by GamesIndustry.biz, the report states that these offices will close as Digital Bros. carries out the reorganization it started in November 2023 when it declared it would be laying off thirty percent of its total workforce, including an undisclosed number of employees at 505 Games at the time. On top of the announced layoffs in November, it is said that around 10 workers of 505 would be impacted by the purported closing of its operations in Germany, Spain, and France.
For 505 Games, this may be viewed as a little unsettling writing on the wall. Apart from the fact that the reorganization of Digital Bros. impacts the number of employees, 505 Games recently gave Remedy Entertainment ownership of the Control IP, granting the developer complete authority over the Control brand about Remedy’s Alan Wake world. In addition to these closures, it appears that 505 has been the target of specific cost-cutting measures during the Digital Bros. reorganization.
About 505 Games
Established in Milan in 2006, 505 Games was a division of Digital Bros. Cooking Mama and Zumba Fitness were among the video games that brought the firm its initial popularity. Following a lawsuit between THQ and Adidas, 505 Games took over publishing responsibilities for the fitness game Adidas MiCoach from THQ in April 2012. They obtained the rights for the Drawn to Life series in April 2013. The whole franchise’s rights were acquired with the purchase. Ashes Cricket 2013 was canceled in November 2013 and reimbursements were given out.
A publishing deal between 505 Games and Adam Orth’s Three One Zero for the game Adrift was revealed in April 2014. The game is billed as a first-person experience in which the user assumes the role of an astronaut investigating the wreckage of a space station. The intellectual property (IP) rights of Starbreeze Studios’ multi-award-winning 2013 game Brothers: A Tale of Two Sons were confirmed to 505 Games in January 2015.
505 Games’ Office Closures: Implications and Uncertainties
It’s hard to predict what 505 Games’ plans may include in light of these offices closing. Given that just 10 workers were purportedly let go, the remaining employees at these locations may relocate to 505’s Milan headquarters or start working from home. Even while the 505 move doesn’t seem to be doing anything to explain the staggering figure, it is undoubtedly another indication of the strain the whole sector is under.
The future of Remedy’s previous deal with 505 to publish Control 2 is unclear due to Remedy acquiring ownership of the Control IP. With Epic Games, who assisted in the publication of Alan Wake 2 just a year ago, Remedy has access to yet another reputable publisher. It’s unclear what 505 Games will publish in the future and what type of games it will produce. It remains to be seen how the firm will do in the wake of these office closures and its apparent strategy change.
