Splash Damage, the UK-based video game developers that brought Wolfenstein: Enemy Territory to life and led development for Gears Tactics, is currently going through a “studio-wide consultation” that have fans and spectators alike worried for the future of the company. Splash Damage has recently been acquired by private-equity investors in September 2025, officially parting ways their former owners, Chinese video game powerhouse, Tencent. The beginning stages of a company acquisition are known to be a chaotic time for a company, but with the recent post from Splash Games, it may confirm that changes are on the horizon. On a November 2025 LinkedIn post, the company announced that their internal review will affect any and all roles:

This was a difficult step for us to take, but we believe it is necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market.

Splash Damage has had a turbulent time acquiring more work to keep the company afloat, with its latest blow of ending production of Transformers: Reactivate. In January 2025, Splash Damage announced the ending of development of Transformers: Reactivate and the inevitable reduction of their workforce due to the game being scraped. Even with the trailer being debuted during The Game Awards in 2022, there were no subsequent updates about the game in 2023 or 2024, causing the hype around the game to fizzle out. The last game that Splash Damage released was Outcasters  in 2020: an exclusive game for the now-defunct Stadia, a cloud-gaming service operated by Google.

With the challenging times that Splash Damage is going through, alongside the trending layoffs at different video game companies–either due to an increase of AI tools or publishers tightening their belts as a direct result of game studios closing–, many suspect that Splash Damage will be laying off more of their staff within the upcoming months.