by Daniel Mar 14,2025
After just six months, Spectre Divide, the tactical FPS backed by Shroud, is shutting down. Mountaintop Studios, the game's developer, announced the closure due to the game failing to meet financial expectations. This article details the CEO's statement and the reasons behind the decision.
Mountaintop Studios CEO Nate Mitchell revealed that the game's first season, "Flashpoint," and its console launch did not achieve the necessary success to keep the game and studio operational. While initially promising—boasting over 400,000 players and a peak concurrent player count of 10,000 across platforms—sustained player engagement and revenue proved insufficient. The team acknowledged that despite initial positive reception, the lack of sustained player base and revenue ultimately led to this decision.
Early reports from The Verge in December 2024 indicated Mountaintop Studios faced significant challenges. The console launch and Season 1 were considered a final attempt to revitalize the game. Spectre Divide Game Director Lee Horn attributed some of the shortfall to server issues at launch, hindering initial momentum despite marketing efforts. Mitchell stated that the underwhelming response to Season 1 forced a critical evaluation of the game's future viability.
The game is expected to go offline within 30 days. New purchases will be disabled, and refunds will be issued for purchases made since the Season 1 relaunch. Further details regarding refunds will be announced shortly.
The closure comes as a surprise, considering Mountaintop Studios secured $30 million in funding last year. This investment, announced on their LinkedIn page in 2024, came from prominent investors including Anthos Capital, RX3 Growth Partners, A16Z GAMES, and various angel investors. Despite this significant financial backing, the game failed to generate sufficient returns to sustain the studio.
Mitchell explained that all avenues for survival—including seeking a publisher, additional investment, or acquisition—were explored, ultimately proving unsuccessful. He attributed the outcome to the current challenging climate within the gaming industry. He emphasized the team's ambition to create an innovative and original experience in a competitive market, highlighting their efforts in game design, art style, and partnerships. However, he acknowledged the inherent risk involved in such an endeavor.
Spectre Divide joins a growing list of live-service games that have faltered, including Multiversus, Babylon’s Fall, Concord, and cancelled projects like The Last of Us Online and a reported God of War live-service game.
Mountaintop Studios will cease operations by the end of the week. Despite extending their remaining capital as far as possible since the PC launch, the studio lacks the funding to continue. This unfortunate outcome underscores the significant challenges facing many game developers in the current market.
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