The gaming industry has witnessed another major setback, as UK-based developer 10:10 Games has been hit by significant layoffs following the poor commercial and critical reception of its debut title, Funko Fusion. Reports indicate that approximately 20 employees have been let go due to the studio’s financial struggles and inability to secure funding for future projects.
According to Insider Gaming, affected employees were notified of the layoffs in mid-January 2025, with some even learning about their job loss while on vacation. Sources suggest that 10:10 Games provided only the bare legal minimum in severance pay, along with compensation for unused holiday allowances.
10:10 Games, founded in 2021 by former Traveller’s Tales developers Jon Burton and Arthur Parsons, was established with the vision of developing engaging, family-friendly video games. However, the failure of Funko Fusion, released in September 2024, has put the studio in a precarious financial position, raising concerns about its future viability.
This incident reflects broader challenges in the gaming industry, where smaller studios struggle to recover from commercial failures and secure funding for new projects.
The Rise and Fall of 10:10 Games
10:10 Games was created as a passion project by industry veterans Jon Burton and Arthur Parsons, who previously worked at Traveller’s Tales, the studio behind popular LEGO video games. The duo aimed to bring fresh, innovative gameplay experiences to the market, partnering with Funko and Universal Games to develop Funko Fusion—a game inspired by the iconic Funko Pop! collectibles.
Funko Fusion was highly anticipated due to its nostalgic appeal and extensive character roster, featuring figures from Jurassic Park, Masters of the Universe, Back to the Future, and more. However, upon its release in September 2024, the game failed to resonate with both critics and players.
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Why Did Funko Fusion Fail?
Several factors contributed to Funko Fusion’s downfall, leading to 10:10 Games’ financial struggles:
1. Poor Critical Reception
Despite the strong intellectual property (IP) partnerships, Funko Fusion was criticized for repetitive gameplay, lackluster storytelling, and weak game mechanics. Many reviewers pointed out that the game failed to capture the excitement and charm of its licensed characters.
2. Weak Commercial Performance
Sales figures for Funko Fusion were far below expectations. Given the high cost of licensing Funko Pop! characters, the game needed to perform well to be financially sustainable. However, disappointing sales numbers made it difficult for 10:10 Games to recover their investment.
3. Market Oversaturation
The gaming industry is saturated with licensed character-based games, making it difficult for Funko Fusion to stand out. Competing against franchises like LEGO games, Fortnite collaborations, and other pop culture-driven games, Funko Fusion struggled to find its audience.
4. Limited Marketing and Awareness
Compared to larger studios, 10:10 Games lacked the marketing budget to generate widespread excitement for Funko Fusion. This resulted in low pre-orders and minimal launch-day hype, leading to underwhelming sales performance.
5. Internal Challenges and Development Hurdles
Reports suggest that development delays and budget constraints may have impacted the final product. Some insiders claimed that certain gameplay elements were rushed, affecting overall polish and user experience.
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The Impact of Layoffs at 10:10 Games
The layoffs at 10:10 Games have sparked discussions about the difficulties smaller studios face in the gaming industry.
1. Job Losses in the Industry
Approximately 20 employees were laid off, a significant number for a relatively small studio. This highlights the fragility of game development jobs, where one commercial failure can lead to massive restructuring.
2. Lack of Financial Safety Nets
Unlike larger studios such as Ubisoft or Electronic Arts, smaller companies like 10:10 Games do not have the financial cushion to absorb losses from a single failed project. The layoffs indicate that the company was heavily reliant on Funko Fusion’s success.
3. Limited Severance for Laid-Off Employees
Reports indicate that affected employees only received the legal minimum in severance pay, leading to concerns over worker protections in the gaming industry. Some employees learned about their layoffs while on vacation, further exacerbating frustration over the situation.
4. Uncertainty About 10:10 Games’ Future
With no confirmed new projects in development and no announced funding sources, the long-term future of 10:10 Games remains uncertain. While the studio has not made an official statement, industry analysts speculate that it may be forced to shut down or seek external partnerships to stay afloat.
The Bigger Picture: Layoffs in the Gaming Industry
The gaming industry has seen an increase in layoffs, with both independent studios and major companies cutting jobs due to financial pressures and shifting market demands.
Recent Game Industry Layoffs Include:
- Embracer Group – Laid off hundreds of employees after massive restructuring.
- Ubisoft – Closed several small studios and cut over 100 positions.
- Epic Games – Laid off nearly 900 employees due to cost-cutting measures.
These cases highlight the volatile nature of the gaming job market, where even experienced developers are not immune to sudden layoffs.
The layoffs at 10:10 Games serve as a stark reminder of the harsh realities of the gaming industry, where financial instability and project failures can have immediate consequences. As smaller studios continue to navigate an evolving market, the industry must find ways to support developers and reduce the impact of sudden job losses.
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FAQs
1. Why did 10:10 Games lay off employees?
The layoffs occurred due to the commercial and critical failure of Funko Fusion, which led to financial struggles for the studio.
2. How many employees were affected?
Reports indicate that approximately 20 employees lost their jobs.
3. What was Funko Fusion supposed to be?
Funko Fusion was a licensed crossover action game featuring characters from various franchises, developed in partnership with Funko and Universal Games.
4. Why did Funko Fusion fail?
The game suffered from poor reviews, repetitive gameplay, weak marketing, and low sales, making it financially unsustainable.
5. Did 10:10 Games provide severance to laid-off employees?
Sources claim that employees received only the bare legal minimum in severance pay, alongside compensation for unused holiday leave.
6. What will happen to 10:10 Games now?
The studio’s future is uncertain, as no new projects or funding sources have been announced.
7. Will Funko Fusion receive updates or fixes?
There has been no official statement regarding post-launch support, suggesting that updates are unlikely.
8. Are layoffs common in the gaming industry?
Yes, layoffs have become increasingly common, with major studios like Ubisoft, Embracer Group, and Epic Games also cutting jobs.
9. Could Funko Fusion’s failure have been prevented?
Better marketing, refined gameplay mechanics, and stronger storytelling might have improved the game’s performance.
10. Where can affected employees find job opportunities?
Many gaming studios, industry job boards, and networking events offer support for laid-off game developers seeking new positions.