By Sagar V. Mankar 
The gaming studio Midnight Society has announced its closure, marking the end of an ambitious project that lasted three years. The studio, which employed 55 developers, was working on DEADROP, an innovative “vertical extraction shooter” that incorporated blockchain technology and NFT elements.
The shutdown announcement comes on the same day, YouTube reversed its monetization ban on one of the studio’s co-founders, the controversial streamer known as Dr Disrespect (Guy Beahm).
Founded in 2021 by Beahm and former Call of Duty community manager Robert Bowling, Midnight Society had big dreams for DEADROP. The game offered early access to players through development “snippets,” though these previews reportedly failed to make a significant impression on the gaming community.
The studio’s troubles basically began escalating in June 2024 when Dr Disrespect became embroiled in controversy. He admitted to exchanging “inappropriate sexting” messages with a minor in 2017 on Twitch, leading to YouTube’s decision to demonetize his channel. Although he later attempted to downplay these messages as “jokes,” YouTube initially upheld its suspension even after an appeal in October.
Just like any other, Midnight Society tried to distance itself from the controversy by emphasizing that Beahm’s role was primarily as an influencer and marketer. However, Beahm contested this characterization, claiming he held a more significant position in the project. The situation led to his departure from the studio, and by September 2024, the company was forced to make “significant” layoffs due to what they described as “multiple unexpected challenges.”
In their farewell announcement, Midnight Society’s leadership expressed gratitude to their community and revealed they are actively working to help their talented team members find new opportunities in the gaming industry. They’ve encouraged other gaming studios to reach out for potential employment connections with their former staff.
Dr Disrespect himself commented on the timing during a recent stream, noting the ironic nature of receiving monetization rights back on the same day Midnight Society announced its closure. “What a fu**ing weird world, huh?” he remarked, “On the day that Midnight Society closes, we get monetization. What a fu**ing trip.”
The closure of Midnight Society adds to the growing list of studios that have faced shutdowns or layoffs in just the first month of 2025. Earlier, Ubisoft announced layoffs and the closure of its Leamington studio, which worked on Star Wars Outlaws. Phoenix Labs, the developer behind popular titles Dauntless and Fae Farm, has also undergone a massive workforce reduction, affecting the majority of its staff, with many speculating that this could signal the end of the studio.