Tragic Encore: Metal: Hellsinger Developer The Outsiders Shuts Down Amid Funcom Layoffs

The gaming community is reeling from the news that The Outsiders, the talented Stockholm-based studio behind the critically acclaimed rhythm-based shooter Metal: Hellsinger, is being shut down. The closure is part of a wider restructuring and layoff plan enacted by its parent company, Funcom.

The sad announcement was made by studio founder and creative director David Goldfarb—a veteran known for his work on the Battlefield and Payday franchises—who took to social media to confirm the studio’s decade-long run has come to an end.

A Victim of Corporate Restructuring

The closure of The Outsiders, which Funcom acquired in 2021, is directly tied to a strategic shift within the publishing giant. Funcom recently celebrated the launch of its ambitious survival MMO, Dune: Awakening, which it hailed as “the biggest release we’ve had in our 32-year long history of making great games.” Paradoxically, this success was followed immediately by a company-wide restructuring focused on cost-saving and a renewed emphasis on live service operations for Dune: Awakening.

The Outsiders team, which was also referred to as “Funcom Stockholm,” was directly impacted by these layoffs, leading to the complete shuttering of the studio. In his heartfelt statement, Goldfarb noted the bittersweet resilience of the team, which had previously overcome the cancellation of their project Darkborn to successfully deliver the innovative Metal: Hellsinger in 2022.

“I have not had much time to process the news but all of us at The Outsiders and Funcom Stockholm have been affected by the layoffs at Funcom and our 10 year old studio will be closing… We are not giving up, and we are going to try to continue on in some new form.”

— David Goldfarb, Founder and Creative Director, The Outsiders

The Fate of Metal: Hellsinger IP

Metal: Hellsinger, a brutal and highly-rated rhythm-FPS featuring vocalists from major metal bands like Arch Enemy, Lamb of God, and Trivium, became a surprise hit upon its launch. It surpassed one million players by December 2022, cementing a strong legacy in a niche genre.

As The Outsiders is closing, the intellectual property (IP) and all publishing rights for Metal: Hellsinger are retained by Funcom. While Funcom has not issued a statement regarding the future development or ongoing support of the game, the closure of its dedicated development team raises serious questions about the potential for a sequel or continued major content updates for the popular title.

A Broader Industry Trend

The closure of a successful, award-winning studio like The Outsiders is a sobering reminder of the volatility currently sweeping the video game industry. Despite a game’s critical or initial commercial success, studios—especially those acquired by larger parent companies—are often vulnerable to sudden, top-down decisions driven by shifting corporate priorities and the pursuit of maximizing shareholder value.

Goldfarb concluded his statement by appealing for assistance, including business leads and placement opportunities for the now-displaced employees, highlighting the human cost of these large-scale corporate restructurings.