RiME Developer Tequila Works Suffers Layoffs And Cancels Game

RiME and GYLT developer Tequila Works announced on Tuesday layoffs have taken place at the company. It has also cancelled an unannounced game and will be “restructuring the studio to concentrate on the development of only one game.”

“These changes will have an impact to a small number of roles at the studio,” said Tequila Works on LinkedIn. “This is an incredibly difficult time, and our focus is to provide support and guidance to those affected.”

Tequila Works already has a storied history in the indie scene since it arrived in 2009. RiME is one of its most acclaimed titles with an 80 Metacritic score. Its last project Song of Nunu was a collaborative project with the League of Legends license starring a boy and his yeti friend in an arctic landscape.

In 2022, Tencent became a majority stakeholder in the Spanish studio. “We are delighted to ally with a partner that allows us to make Tequila Works a stronger studio with access to all the resources required to produce titles of the highest quality, all made with the care and passion our beloved fans know us for as well as the opportunity of bringing these projects to a wider audience,” said Tequila Works Chairwoman Luz Sancho at the time in a news release.

Tencent also holds stakes in Epic Games, Bluehole, and Ubisoft. It also acquired Back 4 Blood developer Turtle Rock Studios in 2021.