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Metroid Dread Developer MercurySteam Has Announced Layoffs Following Blades of Fire's Underperformance
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MercurySteam, the Spanish studio behind Metroid Dread and Metroid: Samus Returns, has announced layoffs it is describing as a "workforce adjustment process," acknowledging in a LinkedIn post that the situation is "nonetheless a difficult and painful situation" despite framing the cuts as typical between production cycles. The studio has not disclosed how many people were affected but included an email address for potential employers to reach out about hiring laid-off staff — a gesture that suggests the studio is actively trying to support its departing employees rather than simply managing the announcement. The layoffs follow the 2025 release of Blades of Fire, MercurySteam's original IP published by 505 Games across PS5, Xbox Series X/S, and PC. The game struggled to find an audience, with parent company Digital Bros. noting in a press release that its underperformance led to "higher-than-expected write-offs" — a direct financial consequence that almost certainly shaped the decision to reduce headcount.
The language MercurySteam used in its announcement is more hopeful than a closure-adjacent statement would read. Framing the cuts as a between-cycle adjustment implies the studio has future projects in development rather than winding down operations, and the company's relationship with Nintendo remains one of the most valuable assets an independent studio in the industry can hold. MercurySteam is rumored to be working on a Super Metroid remake, though neither the studio nor Nintendo has confirmed it. Given that Metroid Dread was a Game of the Year candidate in 2021 and Metroid: Samus Returns was well-received in 2017, Nintendo has clear reasons to continue the partnership — making it plausible that whatever comes next for MercurySteam involves the franchise that put it on the map.
