Iron Galaxy Studios, the once (at best) mediocre studio that has been constantly propped up by industry trends rather than any actual real talent, is now facing a harsh reality discovering its own failures. In a post filled with the usual corporate doublespeak, they announced that it has been 'forced' to lay off 66 employees, citing the industry's "significant change" and a "slow recovery." But let’s cut through that BS fluff—Iron Galaxy wasn’t a victim of market shifts at all. They were a victim of their own poor decisions that led them to this spot in the first place, with DEI-driven hiring practices that always prioritized identity politics over actual game development. Winter is coming, and many of these studios... forgot their jacket.
I covered this situation briefly in a previous Smash JT livestream, but since then, I was intrigued, and decided to dive even deeper, and what I found... was INSANE!
Iron Galaxy's Collapse: A Self-Inflicted Wound
Iron Galaxy’s recent official statement reads like a desperate plea to deflect blame:
"For several years now, we have watched our industry undergo significant change. So many of our friends and colleagues who work in game development have suffered a series of painful adjustments. We’ve seen talented people lose their jobs. Inspiring companies have closed their doors. Our own game, Rumbleverse, was met with a premature sunset."
Their poor attempt to shift the blame to broader industry woes of course conveniently ignores that whole Rumbleverse thing was a complete failure that nobody wanted or ever asked for. The game’s "premature sunset" wasn't anything more than the natural consequence of a project that was doomed from the start—another shallow attempt at a live-service melee battle royale. Like that hadn't been done to death already...
Iron Galaxy Studios has somehow had a hand in over 80 titles, contributing to game development in multiple capacities—whether it was creating original IPs, co-developing major franchises, or even providing support to some seriously high-profile projects. On top of the aforementioned studio’s original title Rumbleverse, a battle royale brawler that was shut down prematurely, they also had a hand in seasons 2 and 3 of Killer Instinct, a solid but... very short-lived fighting game revival.
Other titles include games like Extinction, a critically panned action game, and Divekick, a niche fighting game parody. Beyond their own creations, they’ve even been a co-developer for a lot of ports and remasters, working on games like Skyrim, Crash Bandicoot N. Sane Trilogy, Spyro Reignited Trilogy, and Uncharted: Legacy of Thieves Collection. And then on top of all that - they’ve assisted in the development and launch of major titles such as Overwatch, Diablo 3, and Fallout 76.
While their resume includes some HUGELY recognizable names, their track record is a mixed bag, at best. Their in-house projects failing time and time again to gain long-term traction and their co-development efforts were always overshadowed by the original creators.
Instead of focusing on making compelling games, Iron Galaxy was too busy ensuring their team checked all the right diversity boxes while trying to copy formulas from other companies that saw success in the past.
"Today, Iron Galaxy is parting ways with some of our developers and support staff. In total, we have reduced our employee base by 66 people. This was a means of last resort for us. It’s a measure we do not take lightly to enable our long-term survival."
Let me help on this one - Translation: We spent too much money hiring people based on their gender, race, and sexual orientation... instead of actually hiring the best talent available. Now, reality has caught up with us.
Leadership That Speaks Volumes (Or Takes Baths)
If anyone needs a visual representation of why Iron Galaxy failed, look no further than Dave Lang, the studio’s founder.
His LinkedIn profile picture—yes, an actual photo of him sitting in a bathtub—tells you everything you need to know about the level of professionalism at the top. I'm sure he's a funny, quirky fella, but when stumbling upon this image while researching a layoff on his company... It's not the greatest... look.
When the person leading the company treats his online presence like a joke, should anyone be surprised that the company ended up as one as well?
Lang is the founder, but has replaced himself as CEO with a woman. Chelsea Blasko. Her LinkedIn banner should tell you all you need to know about who we're dealing with in charge of the company:
DEI Was Their Focus, Not Making Good Games
One of the most telling signs of Iron Galaxy’s inevitable demise was its overt focus on diversity, equity, and inclusion (DEI) rather than making great games. Going all the way back in 2021, we can see the beginnings of the downfall when the company proudly announced the hiring of Rejess Marshall as their "DEI & Access Program Manager." Here’s just a taste of the ridiculousness from their press release:
"Our leadership team is incredibly focused on hiring diverse staff and creating an environment at Iron Galaxy where everyone can be their authentic selves so that we attract the best talent in the business."
Notice how there’s no mention of hiring the most skilled developers? Just "diverse" ones. Who needs merit when you have a skin color? When a company prioritizes identity over merit, you get disasters like Rumbleverse and, ultimately, layoffs.
Rejess Marshall herself summed it up perfectly:
"As a black, queer woman, I understand how intersecting identities can create workplace barriers, preventing upward mobility. By addressing pay inequity, retention of diverse employees, and employee support... I look forward to continuing to build an environment where everyone truly feels valued."
Mission accomplished, Rejess. The DEI policies were so successful that now 66 people are out of a job, and the company is fighting for survival. Is anyone really surprised?
They even have an entire page on their website dedicated to this garbage:
The Predictable End of Another Woke Studio
Iron Galaxy’s downfall was 100% completely predictable. It's a studio that cares more about virtue signaling than any actual game development. They spent years pushing DEI initiatives, hiring based on quotas, and crafting performative statements while churning out forgettable, unwanted games.
...Now? they’re paying the price.
The company claims of course that it’s still "committed to serving our partners in the creation of games." But after this debacle, who'd want to even work with them? Their track record is filled with failures, games no one cared about, and their leadership, at least from the outside looking in, comes across to me as an embarrassment. Their priorities have been entirely misplaced altogether and the only thing shocking about Iron Galaxy’s implosion is honestly... that it took this long to happen.
~Smash
