Following a successful public test at Steam Next Fest, the developer of the post-apocalyptic shooter Enginefall announced layoffs at both offices. The reason given is a “restructuring to ensure a sustainable foundation.” But there are more questions than answers.
Red Rover Interactive, a studio whose credits include veterans of Funcom, Bohemia Interactive, and Lockwood Publishing, confirmed layoffs at its Oslo and Newcastle offices. The exact number of layoffs was not disclosed. In a statement to Game Developer, the studio called it a “restructuring” that will put the company in a “more sustainable position” for the next phase of Enginefall’s development.
The situation appears, at best, uncertain. Red Rover Interactive raised $20 million in funding over the past three years. In 2024, PUBG holding company Krafton invested $15 million to accelerate Enginefall’s development. The game—a multiplayer sandbox shooter set on moving trains with crafting and PvPvE mechanics—has amassed over 300,000 wishlists on Steam. In June 2026, Enginefall underwent public testing at Steam Next Fest and received “overwhelmingly positive” reviews from journalists.
And now—layoffs.
“Our first priority is to best support those impacted by these changes,” the studio said in a statement. Red Rover has hired a specialized staffing agency to assist those laid off in finding new work. Enginefall development itself continues as planned, but the studio has not specified whether the layoffs will affect teams critical to the release.
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What’s behind the Enginefall restructuring?
The official line is that it’s a preventative measure. The studio wants to reduce operating costs and improve long-term sustainability, not avoid immediate financial ruin. But the gaming community naturally wonders: where did the $20 million go if 300,000 wishlists and a successful demo test don’t guarantee stability?
According to Gamer.no, before the layoffs, there were 15 people working in Oslo and 22 in Newcastle. Meanwhile, the studio was profitable in 2023, 2024, and 2025, with revenue for 2025 amounting to 19.1 million kroner and a profit of 1.3 million kroner. So, the financial results don’t look catastrophic.
However, 2,000 kroner is approximately 1.34 billion rubles at the current exchange rate—a considerable sum for an independent studio with two offices and one project in development. And if it wasn’t enough to avoid layoffs after a successful public test, a reasonable question arises: how realistic were the cost estimates?
Risks to Enginefall’s 2026 release
The most alarming sign is the lack of a direct answer regarding the release date. Gamer.no reports that the studio did not respond to inquiries about how the layoffs will affect the release window. Official statements only mention the “next stage of development.”
Enginefall is currently scheduled for 2026. However, if the restructuring affects key developers—engineers, level designers, or network specialists—the schedule will be in question.
Meanwhile, the game already has its core gameplay: PvP battles between trains, crafting, resource gathering, and base building. Public testing has shown that the “moving megatrain” concept works. However, fine-tuning, polishing, and content addition are resource-intensive stages that could drag on without a full team.
Another scenario: the layoffs are a deliberate attempt to tighten the belt before a major marketing push. If the studio is reallocating its budget toward promotion closer to release rather than maintaining an overstaffed team, it may be justified in the long term. But for now, this is just speculation.
Why a studio with $20 million in investments is laying off staff?
The economics of game development are brutal. $20 million isn’t a bottomless budget, especially for a studio with two offices in Norway and the UK, where salaries and rent are prohibitive. Plus, developing a shooter with online mechanics and procedural generation is expensive and time-consuming.
A possible explanation: the studio overestimated the pace of development, hired more people than it could effectively handle, and is now forced to adjust. Either Krafton, as an investor, demanded cost optimization. Or—and this is the most likely—Red Rover Interactive is preparing for lengthy post-release support and has decided to conserve its budget for post-launch content updates.
Whatever the reason behind this decision, one thing is clear: in 2026, even successful projects with multi-million dollar investments are not immune to layoffs. The gaming industry continues to be shaken, and Enginefall is further proof of this trend.
What’s next: There’s no official confirmation yet on the impact of the cuts on the release date. The studio promises to continue development. Further news will likely come when Red Rover Interactive announces a new release window or confirms the current schedule. Keep an eye on the game’s Steam page and the studio’s official channels.
