OtherSide Entertainment layoffs 2026

The leadership read

Project cancellation at this scale leaves the studio in a structurally different position than a simple headcount reduction. OtherSide had organised creative, engineering, and production capacity around Argos; that work is now gone, the institutional knowledge built during development disperses with the departing staff, and whatever IP or design assets existed may have no clear commercial path. For a studio of OtherSide's size, historically well under 50 people, losing 17 roles is not a trim, it is a fundamental reset of operating capacity. The remaining organisation must now decide whether it rebuilds around a new project, seeks a publishing or co-development relationship to de-risk the next slate, or operates as a smaller entity with a narrower scope. This is one of twelve layoff signals we have tracked across sectors in the last 90 days. The gaming-specific examples are the most instructive: Double Fine cut 23 roles (25% of its workforce) following its separation from Xbox, and EA reduced headcount across its Battlefield teams despite a record-breaking launch. The consistent pattern is that mid-sized studios face acute financial exposure at project-transition moments, particularly when they lack a committed publishing partner to bridge between titles. Across independent and mid-tier studios at this stage, the pattern concentrates demand for commercial and partnership leadership, specifically operators who can structure co-development, co-funding, or licensing arrangements before a project reaches full production scale. Studios burning capital on unannounced titles without a publishing backstop are the most fragile; the market is moving toward operators who can build and maintain those relationships proactively rather than reactively.