Shroud’s AAA Survival Game Hits Trouble as Splash Damage Faces Layoffs

UK-based game developer Splash Damage, known for Dirty Bomb and collaborations on Gears 5 and Gears Tactics, is entering a consultation process that could lead to significant layoffs across the entire studio. The announcement was made on November 26, 2025, and affects staff across all disciplines.

The news follows earlier layoffs this year after the cancellation of an online Transformers game. The exact number of employees impacted this time is unclear, leaving the future of Splash Damage’s high-profile projects uncertain.

Project Astrid: Shroud’s Dream Game

Splash Damage had been developing a AAA survival FPS called Project Astrid in partnership with influencers Shroud and Sacriel.

Shroud described the game as his “dream” project, aiming to deliver polished gunplay, intense encounters, and expansive open-world exploration unlike anything seen before.

The consultation process casts doubt on whether Project Astrid will continue as planned. Neither Shroud nor Sacriel have publicly commented on the layoffs.

A Tough Market Forces Hard Choices

Splash Damage stated that the decision was necessary to keep the studio agile in a challenging market. The company pledged to support affected employees while attempting to retain top talent.

Shroud’s Recent Missteps

The layoffs follow a series of setbacks for Shroud’s gaming ventures. Spectre Divide, a 3v3 tactical shooter, launched in September 2024 but was taken offline six months later due to low player numbers, leading to the closure of its developer, Mountaintop.

Splash Damage’s current situation raises questions about whether Project Astrid will survive or if Shroud’s “dream game” will join the list of high-profile projects cut short.