Phoenix Labs collapses after failed Steam relaunch and blockchain acquisition turmoil
Summary
Phoenix Labs, developer of Dauntless and Fae Farm, has laid off the majority of its studio
The move follows a disastrous Steam relaunch of Dauntless and a turbulent acquisition by blockchain firm Forte Labs
Dauntless dropped from 3,200 peak CCU at Steam launch to just 130–160 daily CCU
The studio had already shed 160+ employees prior to this latest round
"Another difficult day... unfortunate but necessary changes to our operations"
01
Majority layoff hits studio already in decline
Phoenix Labs announced layoffs affecting the majority of its workforce via LinkedIn
The cuts follow months of internal turmoil since Forte Labs' 2023 acquisition
Studio promises "more details in weeks ahead" on the future of Dauntless and Fae Farm
No concrete survival plan has been publicly outlined for either title
02
Dauntless Steam relaunch accelerated the collapse
The "Awakening" update launched Dauntless on Steam but erased player progression
New monetization design was immediately criticized by the player base
Game currently sits at "Overwhelmingly Negative" reviews on Steam
Peak CCU briefly hit ~3,200 at launch, then collapsed to 130–160 daily
03
Forte Labs acquisition created structural dysfunction
Blockchain firm Forte Labs acquired Phoenix Labs in 2023
Former employees reported a culture of strict secrecy and siloed team communication
Forte allegedly concealed its ownership from prospective hires
Developers were reportedly pressured to draft blockchain integration plans for in-game economies
No blockchain features were ever publicly released
04
Long history of overexpansion and ownership instability
Phoenix Labs was originally funded and published by Epic Games at Dauntless launch in 2019
Game reached 500,000 players across EGS, Xbox, and PS4 — cross-play was a key differentiator at the time
Studio later operated under Singaporean publisher Garena (Sea Ltd.), which divested in 2023
Multiple projects were cancelled: Project Dragon and other unannounced titles
Cross-play, once a USP, is now industry standard — removing a core competitive edge
05
What's next
Phoenix Labs has not announced studio closure, but operational future remains deeply uncertain
Fate of live-service Dauntless and premium title Fae Farm is unresolved
Further details on both games expected in coming weeks
Forte Labs' broader blockchain gaming ambitions for the studio remain unrealized and unannounced
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