Palia layoffs 35 % of staff as it launches
TL;DR
Singularity 6, the developer of Palia, has laid off 35 percent of its workforce after the game’s launch on Steam. The decision was not made lightly, to ensure long-term stability and deliver high-quality gameplay service. I do wonder if the monetization option they chose only for cosmetics could be not sustainable. It’s a tough time for those working as there have been layoffs the last few months.
Nicole Carpenter from the Polygon reported on this though numbers not confirmed. She also has an excellent article around the layoffs happening to game developers and how it affects their mental health the the crisis of the industry
Palia has already launched on Steam, Epic Games Store and Switch. But to mixed reviews on steam. There are a few YouTube videos on both praise and caution about it, not sure what player base they are attracting besides cozy gamer types.
I am looking forward to try playing this game ever since hearing about it in 2022, due to being curious its new direction with MMOs and less F2P monetisation tactics.
I am not sure what is going on at Singularity 6 only read X Teeets about some of the staff let go.
X: https://x.com/natalie_olivari/status/1776301723901968606
Monetisation issues?
I am not sure what is going on at Singularity 6 only read X Teeets about some of the staff let go. It could mean that income for the game is not coming fast enough.
Palia wanted to change how MMOs are monetized by selling in game items and not subscriptions or battle passes, which sounded like a better option at that time. Now I am not sure if that business model can work still so maybe if revenue is not coming in quick the cost might be ballooning.
TL;DR (but we highly encourage the full read!)
Palia will be free-to-play
Palia will monetize cosmetic items
Palia will not monetize things you earn through gameplay
You won’t need to buy loot boxes or get content through a rotating store
This was on their blog regarding their business model.
On Youtube some concerns about the monetisation option in Palia being cosmetic only is concerning about the games sustainability.
YOTUBE Eeowna : https://m.youtube.com/watch?v=QU3Bcf8sS9s&pp=ygUFUGFsaWE%3D
VC money drying up?
Singularity 6 raised about $49 Million form 2019–2021, in a few series rounds. Not sure what is their financial health but I am assuming it might not be enough runway, it may not help that inflation and the economy will result in consumers spending less.
I am not sure how much of the game can recoup server and other ongoing cost from sale of cosmetic items.
Maybe it’s just bad planning and the state of the industry with layoffs happening as a norm this year. Over on reddit a commenter made some interesting points about staff getting laid off nearing the games release due to the projection of the income coming in.
Comment on reddit:
Coming from someone in game development, I thought I could provide a little insight in this maybe. Sure, they very well could be cutting people because they can’t support paying them with their current income or projection of income.
But it’s not unusual for people to get taken off projects once a live game has been “released”. I know the game is still in beta, but most of the basics are already there now. It takes a lot more people to get the game into the state it is in, than improving the game during the live service. In my experience, downscaling between 20 and even 50 percent of the team at this stage is not that crazy.
Or they are being hit with the same layoffs as the rest of the industry right now, due to bad planning of resources and greedy management. Could be either.
Still sucks for the people who got laid off though :(
Links
Reddit: https://www.reddit.com/r/pcgaming/comments/1bwiuin/cozy_mmo_palia_developer_singularity_6_has/
