Phoenix Labs, the developer studio behind Fae Farm and Dauntless, has announced it will be laying off the majority of its staff and is uncertain of Dauntless’s future, marking the end of an era for the company and its devoted community. The news of the studio’s closure has sent shockwaves through the gaming industry, leaving fans and industry experts alike reflecting on what could have been.
Founded in 2014 by a group of former Riot Games employees, Phoenix Labs quickly made a name for itself with its unique approach to game development and its focus on creating highly cooperative multiplayer experiences. Over the years, the studio released several highly acclaimed titles, with their most notable success being Dauntless, a free-to-play action RPG that gained significant attention for its engaging gameplay, vibrant art style, and emphasis on teamwork.
But despite the early success and the passionate player base, recent trouble with the Awakening Update, and fan backlash, alongside the already tumultuous climate of the industry has seen Phoenix Labs stumble and fall.
Phoenix Labs was founded by former Riot Games employees Jesse Houston, Sean Bender, and Adam Kreutzer. The three had previously worked together at Riot, contributing to the success of League of Legends, one of the most influential games in the modern era of competitive gaming. However, the trio’s desire to create something new and different led them to leave Riot and start their own studio in 2014.
Their mission was clear: to build games that would foster social cooperation and bring players together through shared experiences. This vision ultimately led to the creation of Dauntless, a free-to-play action RPG that was heavily inspired by a rainy day playing Monster Hunter by the beach. The game tasked players with hunting massive creatures called Behemoths in a co-op environment, combining intense combat with deep crafting and progression mechanics.
Phoenix Labs aimed to make Dauntless accessible to a wide range of players by offering a free-to-play model with microtransactions for cosmetic items. This approach was a bold choice, but one that ended up paying off. The game gained millions of players and quickly became a favourite in the online multiplayer space. With its combination of accessible gameplay and challenging co-op mechanics, Dauntless earned a loyal fanbase that helped propel Phoenix Labs into the spotlight.
Dauntless was well-received by gamers and critics alike, due to its polished gameplay, engaging world design, and emphasis on teamwork. Players were drawn to the cooperative element of the game, which required players to work together to defeat large Behemoths in challenging encounters. The game’s open world, combined with its deep customization and loot systems, provided hours of content that kept players coming back for more, with monetisation being rather fair when compared to similar titles.
What set Dauntless apart from other action RPGs was its approachability. While games like Monster Hunter were known for their steep learning curves, Dauntless streamlined many of the complex systems to ensure that even casual gamers could enjoy the experience. The game’s colourful art style and accessible mechanics made it an attractive option for a wide demographic, ranging from hardcore gamers to newcomers. In addition to the core gameplay, Phoenix Labs invested heavily in community building. The studio consistently communicated with players through updates, patches, and events, ensuring that Dauntless remained fresh and engaging. Seasonal content, such as special events and themed gear, kept the game exciting for long-term players, while new Behemoths and gameplay features kept the experience feeling dynamic.
The game’s success was reflected in its player numbers. By 2020, Dauntless had garnered over 25 million players worldwide. It was a true testament to Phoenix Labs’ ability to create a game that resonated with a broad audience and had a lasting impact on the online multiplayer space. Despite its initial success, Phoenix Labs faced significant challenges in the years following the release of Dauntless. As the free-to-play market grew increasingly crowded, the studio found it difficult to maintain its momentum. In addition to the increasing competition, Phoenix Labs struggled with balancing the free-to-play model. While microtransactions provided a steady stream of revenue, they also attracted criticism from players who felt the game’s progression was overly reliant on paid content. The introduction of premium currency and loot boxes in some updates led to backlash from the community, who feared that the game was becoming too “pay-to-win.”
The studio had to contend with the constant pressure to release new content while ensuring that the game remained stable and bug-free. This balancing act often resulted in long delays between major updates, leaving players frustrated with the lack of new content. Though Phoenix Labs made efforts to address these concerns, the pressure was mounting, and it became clear that the studio was struggling to keep up. Phoenix Labs also faced financial difficulties as the studio relied heavily on external investments to fund its operations. While the studio was able to secure funding from venture capitalists, including Tencent, it wasn’t enough to weather the financial pressures and keep the studio afloat in the long term, finally being acquired by the Forte group, a blockchain and NFT-focused company.
Today, Phoenix Labs issued the following Statement:
The closure of Phoenix Labs marks the end of a promising chapter for the company and its talented team of developers. They had committed to turning around Dauntless after the disastrous “Awakening” update and it seemed like fans were going to stick around to see if they could redeem the ill-fated update. All hope for that fix now appears to be lost.
It’s never good when studios shutter, as there’s a myriad of talented, passionate people behind the games we play and the past 2 years have been a bloodbath for the industry.
Although Phoenix Labs has changed hands many times, its legacy and the reason why the studio formed will not be forgotten. Dauntless remains a testament to the original vision of creating cooperative, accessible gaming experiences. The game’s focus on teamwork, community engagement, and fair monetization set a new standard for free-to-play titles and left a lasting impact on the gaming industry. Phoenix Labs also proved that a small indie studio, even in a competitive industry, could achieve significant success with the right vision and execution. Their rise to prominence was an inspiration for other developers looking to break into the gaming space, and their closure serves as a reminder of corporate greed and the bottom line corrupting creativity, gouging money, and putting amazing and talented people out of work.
