Gameloft has shuttered its studio in Budapest, laying off around 100 employees, reports GameDeveloper.

The studio first opened in 2012, with a focus on the development of free-to-play mobile games. However, Gameloft told Hungarian outlet HVG that it was closing the studio in order to focus more closely on the console and PC markets following the success of Disney Dreamlight Valley, which proved to be a multiplatform hit, gaining a million players shortly after early access in Autumn 2022.

In a statement, a spokesperson for Gameloft stated that the company found the decision to close the studio “difficult” and clarified that Gameloft was “working to find the best possible solution for the employees concerned.”

A dreamy future?

This closure, and the associated layoffs, is the latest in a string of downsizing throughout the industry, however while the likes of Take-Two are announcing layoffs to maintain profitability, this closure sees Gameloft actively stepping away from the most profitable branch of the games sector.

Mobile gaming continues to dominate in terms of revenue, accounting for 50% of the total earned by the mobile industry in 2022. However, console and PC titles such as The Last of Us, Final Fantasy, and Resident Evil often dominate discussions from fans and critics alike, as evidenced by the lack of recognition of mobile games at major award shows. Gameloft doubling down on its focus on other platforms could therefore signify great confidence in the company’s ability to maintain profitability in the future, while pursuing sectors of the industry more likely to garner attention from the wider playerbase.

It’s worth noting that, while Gameloft is seemingly downplaying its mobile business, it still has vested interest in the free-to-play model, with Dreamlight Valley proving successful while utilising it.

We listed Gameloft as one of the top 50 mobile game makers of 2022.