Ivy Road studio to close after failing to secure funding for Engine Angel

Ivy Road, the indie studio behind Wanderstop, announced it will shut down as of March 31, 2026, after funding for its next project fell through. The team expressed gratitude for their work on the 2025 release while lamenting the tough funding climate. Annapurna Interactive teased future news related to Wanderstop.

Ivy Road, cofounded in 2021 by Stanley Parable co-creator Davey Wreden with support from Annapurna Interactive, revealed its closure on Friday. The studio's sole release, Wanderstop—a tea-making cozy sim and narrative adventure about burnout—launched in early 2025 and earned positive reviews, including an 80 Metacritic score and 90 percent positive Steam user rating from hundreds of thousands of players. Eurogamer described it as 'warm-hearted, funny, and never less than sincere,' awarding it three out of five stars. The team had been developing Engine Angel, a prototype blending elements reminiscent of Twisted Metal and Platinum Games-style action, conceived by team member Liz. 'Today, we must share some bittersweet news: Ivy Road is closing its doors as of March 31st, 2026,' the studio stated. 'It’s hard to put into words how thankful we are to have been able to work together on Wanderstop – this is an incredible group of people! And while we had a new project, Engine Angel, that we were excited about, unfortunately the funding didn’t come to fruition and the studio had to shut down.' Despite pitching to publishers, no deal materialized. 'It’s a particularly tough time for raising game funds, so while we weren’t necessarily surprised, we are disappointed that we won’t be able to bring Engine Angel to life together as a team. Liz's concept is incredible, and we hope it may someday come to fruition!' In a final gesture, Ivy Road added a Chapter Select cheat code to Wanderstop, allowing players to skip to any section. The studio also hinted at 'one last surprise' from Annapurna Interactive to help the game reach new players. This closure reflects broader industry struggles, with at least 3,000 developers laid off in the first three months of 2026 and 13 studios shuttered.

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Illustration of Nagoshi Studio employees in shock amid office closure due to funding cut, with Gang of Dragon game art and rainy Tokyo backdrop.
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NetEase halts funding for Toshihiro Nagoshi's Gang of Dragon, allows studio to continue independently

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NetEase has notified Nagoshi Studio it will stop funding from May 2026 for its debut game Gang of Dragon, after the studio requested an additional ¥7 billion ($44.4 million) to complete the project unveiled at The Game Awards 2025. The studio may continue independently if it secures alternative funding and negotiates to buy back IP rights.

The cozy game Wanderstop is receiving physical editions for the Nintendo Switch and PlayStation 5, along with its soundtrack on vinyl for the first time.

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One day after Sony Interactive Entertainment announced the shutdown of its year-old PlayStation studio Dark Outlaw Games, founder Jason Blundell and former level designer JCbackfire discussed the closure on a Twitch stream. They mourned the promising early-stage project—which was not a live-service game—while expressing no ill will toward Sony amid its strategic shifts.

Build A Rocket Boy has announced further layoffs—the third round since MindsEye's launch—attributing them to industry woes and alleging organized espionage and sabotage. Co-CEO Mark Gerhard said the studio's investigation into these claims is progressing toward prosecution.

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Ubisoft has discontinued its cozy life simulation game Alterra, inspired by Animal Crossing and Minecraft, following nearly three years of development at Ubisoft Montréal. Staff were informed of the cancellation on April 21 and sent home for the day, with employees reassigned to other projects within the company. Ubisoft confirmed its practice of assessing projects but did not directly address Alterra.

Night Street Games has halted plans for major content updates to its multiplayer shooter Last Flag, just three weeks after launch, due to insufficient player numbers. The studio, founded by Imagine Dragons singer Dan Reynolds and his brother Mac, confirmed it will deliver only planned patches before shifting focus. The game will remain online with community features.

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Former lead cinematic animator Chris Wilson has detailed alleged mismanagement, unauthorized surveillance, brutal crunch, and leadership rifts at Build a Rocket Boy's MindsEye studio. His Kotaku interview amplifies ongoing worker grievances and sabotage claims amid multiple layoffs, as covered in prior reports on the studio's turmoil.

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