Versus Evil, the indie game publisher behind Stoic Studios The Banner Saga and Obsidian Entertainment pillars of eternity, announced Friday that it would close after a decade in business. The entire Versus Evil staff was laid off just days before Christmas – and the day after Atari announced a $2 million investment in Versus Evil parent company tinyBuild.
“Today is a sad day,” Versus Evil said on his X account. “After 10 wonderful years, Versus Evil is closing its doors. We loved bringing you the best indie games we could find and sharing so many great memories with all of you, our amazing community! From the bottom of our hearts: THANK YOU for everything!”
This announcement was preceded by a message from Lance James, the now former head of production at Versus Evil, who said: “Welp. That was a fun 10 year ride. The entire Versus Evil team just got fired.” James added: “Let me be clear: this was not a versus-evil decision or choice.” James also posted messages from former Versus Evil staffers who were now looking for work.
Thirteen employees would be affected by the closure of Versus Evil a message on LinkedIn by the company's former director of product strategy, Francis Fincke.
The closure of Versus Evil comes weeks after tinyBuild announced lower-than-expected revenue and cost-cutting measures, including layoffs at the company. Up investor websiteTinyBuild says it has more than 400 employees worldwide, with 250 added to its ranks in 2021 when tinyBuild acquired Versus Evil and its development subsidiary Red Cerberus.
In his announcement (PDF) on December 5, tinyBuild singled out the Versus Evilas an underperformer, delaying three of the brand's four games from 2023 to 2024. That announcement also revealed a $3.5 million settlement between tinyBuild and Versus Evil- founder Steve Escalante, Lance James and Stall Proof LLC (the former owner of Versus Evil, before tinyBuild acquired the publisher in 2021). Escalante, James and Stall Proof had alleged that tinyBuild was “obligated and failed to make timely capital contributions to Versus Evil during fiscal years 2022 and 2023,” according to the announcement. Escalante has since left Versus Evil.
Atari's investment in tinyBuild is part of the latter's attempt to raise $14 million in capital by issuing new shares.
The closure of Versus Evil comes amid a disastrous year for workers in the video game industry, with an estimated 9,000 people losing their jobs due to severe cutbacks in the tech industry.