Phoenix Labs Conducts Major Layoffs, Raising Concerns for Dauntless and Fae Farm

January 27, 2025 John Silver Comments

Phoenix Labs, the Vancouver BC based studio behind Dauntless and Fae Farm, has laid off a majority of its workforce, casting uncertainty over the future of both games. The studio announced the cuts in a LinkedIn post earlier today, calling the move “tough but necessary,” though it did not specify how many employees were affected or what the restructuring means for ongoing development. Updates on the games’ roadmaps are promised “in the coming weeks.”

What’s Happening to Dauntless and Fae Farm?

This round of layoffs follows a turbulent period for Phoenix Labs. In 2023, the studio began downsizing after canceling all projects except Dauntless and Fae Farm—a decision tied to blockchain firm Forte Labs, which secretly acquired the studio in 2022. Whistleblowers later exposed Forte’s involvement, revealing its push to pivot Phoenix Labs toward blockchain projects, a plan met with internal resistance.

Dauntless’ Downward Spiral: The free-to-play action RPG, often compared to Monster Hunter, has struggled since its poorly received Awakening overhaul in December 2023. The update stripped progression systems, alienating veterans and critics. Players have called it a desperate grab noting the game now is barly a husk of its formerself. Last week’s planned Umbral Reign season delay now appears linked to the studio’s staffing crisis.
Fae Farm’s Radio Silence: The cozy farming sim, launched in 2023, has seen no major updates since its release. Phoenix Labs has not clarified whether planned DLC or fixes will proceed.

Phoenix Labs’ decline highlights broader challenges in live-service gaming, where investor pressures and shifting priorities often clash with player expectations. Forte Labs’ stealthy acquisition and failed blockchain pivot further underscore the instability that has plagued the studio.

Players of both games now face an anxious wait for clarity, with layoffs suggesting reduced capacity to support existing titles. Phoenix Labs’ remaining team has yet to address how (or if) content pipelines will continue.

My gut says that the studio is likely doomed and will try to sell itself off.