Mountaintop Studios has announced the closure of its tactical FPS game, Spectre Divide, just six months after launch. The decision comes after the game failed to meet the company's financial expectations, despite a promising start. This article details the CEO's statement and the reasons behind the shutdown.
Spectre Divide to Go Offline in 30 Days
Season 1 and Console Launch Fall Short of Expectations
The official Spectre Divide Twitter (X) account revealed the news on March 13th. Mountaintop Studios CEO, Nate Mitchell, explained that the Season 1 launch, including the console release, did not generate the necessary revenue to sustain the game and the studio. While initial numbers were encouraging—over 400,000 players and a peak concurrent player count of 10,000 across platforms—sustained player engagement and revenue proved insufficient.
This follows a December 2024 report by The Verge highlighting Mountaintop Studios' financial difficulties and indicating that the Season 1 launch and console release were crucial for the game's survival. Game Director Lee Horn attributed some of the shortfall to server issues at launch, hindering initial momentum despite marketing efforts. Mitchell acknowledged the risks, stating that continued operation hinged on Season 1's success.
The game is expected to go offline within 30 days. New purchases will be disabled, and refunds will be issued for purchases made since the Season 1 relaunch. Further details regarding refunds will be announced shortly.
Spectre Divide's Demise Despite $30 Million in Funding
The closure is particularly surprising given that Mountaintop Studios secured $30 million in funding last year from prominent investors including Anthos Capital, RX3 Growth Partners, A16Z GAMES, and angel investors. However, this substantial investment proved insufficient to ensure the game's long-term viability. Mitchell attributed this to the challenging current climate within the gaming industry, stating that exploring alternative options like finding a publisher, securing additional investment, or seeking acquisition ultimately failed.
He reflected on the studio's ambition to create an innovative and original experience in a competitive market, highlighting their efforts in art style, universe creation, and partnerships. Despite acknowledging the inherent risks, Mitchell emphasized their commitment to the project.
Spectre Divide joins a growing list of live-service games that have struggled to maintain profitability, including Multiversus, Babylon's Fall, and Concord, as well as cancelled projects like The Last of Us Online and a reported God of War live-service game.
Mountaintop Studios to Close This Week
Mountaintop Studios will cease operations by the end of the week due to depleted funding. Mitchell stated that despite extending their remaining capital as far as possible, they lack the resources to continue supporting Spectre Divide. The closure marks the end of an ambitious project that, despite significant investment and effort, ultimately fell short of its goals.