Kwalee Labs has shut down following the release of its debut game Luna Abyss. The studio laid off its entire team less than a month after the title launched on May 21.
The decision came on June 15 when all staff were made redundant, according to a statement from CEO Hollie Emery. She noted that the move was outside the company's control.
Luna Abyss, an atmospheric bullet hell shooter, launched day-and-date on Steam, consoles and Xbox Game Pass. It received positive coverage including praise from Polygon as one of the best shooters of 2026 along with an 86 percent positive rating on Steam and a Metacritic score above 80.
Emery expressed pride in the project despite the outcome. She said the team was available for new work immediately after the layoffs.
