By Sagar V. Mankar 
Swedish games company Enad Global 7 (EG7) has announced the closure of Toadman Interactive.
The studio, known for developing Immortal: Unchained and supporting major titles like The Lord of the Rings Online, will wind down operations in the second half of 2025.
The closure affects 69 employees and contractors, though 42 team members will remain temporarily to complete existing projects with Daybreak and Cold Iron Studios.
“This decision does not come lightly,” EG7 stated, explaining that the closure follows several unsuccessful attempts to make the subsidiary profitable. The company had already implemented “cost-saving measures” in 2024, including closing offices in Stockholm, Visby, and Oslo, while reducing staff at its Berlin location.
Impact on Sister Studio Piranha Games
The restructuring at EG7 extends beyond Toadman Interactive. Piranha Games, which EG7 acquired for $24.1 million in 2020, is laying off 38 employees following the disappointing performance of MechWarrior 5: Clans. Despite receiving praise for its quality, the game struggled to expand its player base and meet sales targets.
EG7’s CEO Ji Ham acknowledged the team’s achievements while explaining the difficult decision: “The team at Piranha truly delivered a high-quality game that exceeded both internal and external expectations in terms of quality, story, and gameplay. However, the game failed to reach new audiences as anticipated.”
Broader Industry Challenges
After a hiatus in the industry in 2024, many anticipated a peaceful new year. However, within two weeks of 2025, we have already witnessed three studio closures and numerous layoffs Beyond Toadman Interactive, two other studios that faced closure are:
- Freejam Studios: The developer of Robocraft 2 announced its closure via Discord server. The studio will sunset multiple games, including the original Robocraft and CardLife, over the coming weeks.
- Counterplay Games: The studio behind the PlayStation 5 launch title Godfall has been disbanded following an unsuccessful partnership with Jackalyptic Games. The news came through a LinkedIn post from a Jackalyptic Games employee, confirming the end of their collaboration.
Recent industry layoffs are:
- Splash Damage has halted development of Transformers: Reactivate and is scaling down operations
- Rocksteady, developer of the upcoming Suicide Squad: Kill the Justice League, underwent another round of layoffs in late 2024
Sources: Eurogamers