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The video game industry runs on big bets. Studios spend years developing a single title, investing huge budgets in technology, marketing, and talent with the hope of creating a hit. But when a highly anticipated game fails, the consequences can be severe. In some cases, a single release can damage a studio’s reputation, lead to layoffs, or even force a company to close its doors. Over the years, several games have become infamous for the damage they caused behind the scenes. Here are 15 video game failures that seriously hurt the studios behind them.
E.T. the Extra-Terrestrial (1982) – Atari
Rushed to release in just a few weeks, the game became infamous for its confusing gameplay and technical issues. Its massive commercial failure contributed to Atari’s financial collapse and the wider video game crash of 1983.
Too Human (2008) – Silicon Knights
After nearly a decade in development, the game launched to mediocre reviews and disappointing sales. Combined with an expensive legal battle with Epic Games, the failure helped push Silicon Knights toward bankruptcy.
APB: All Points Bulletin (2010) – Realtime Worlds
This ambitious online crime game had a huge budget and massive expectations. When it failed to attract enough players after launch, the studio quickly ran out of money and shut down soon after.
Kingdoms of Amalur: Reckoning (2012) – 38 Studios
Despite decent reviews, the game didn’t sell enough to cover the studio’s enormous financial obligations. The resulting debt forced 38 Studios to close just months after the release.
Aliens: Colonial Marines (2013) – Gearbox Software / TimeGate Studios
Heavily marketed as a major Alien franchise title, the game launched with poor AI, bugs, and visuals far below what was shown in trailers. The backlash damaged reputations and hurt the studios involved.
The War Z (2012) – Hammerpoint Interactive
Marketed as a survival experience similar to DayZ, the game launched in a broken state and was accused of misleading advertising. The controversy destroyed player trust and severely hurt the studio’s credibility.
Anthem (2019) – BioWare
BioWare’s attempt at a live service shooter launched with shallow content and technical issues. The disappointing reception led to the cancellation of planned improvements and raised serious questions about the studio’s future direction.
Babylon’s Fall (2022) – PlatinumGames / Square Enix
This live service action game failed to attract players almost immediately after release. Servers were shut down within a year, making it one of the fastest live service failures in recent memory.
Marvel’s Avengers (2020) – Crystal Dynamics
Despite the power of the Marvel brand, the game struggled with repetitive gameplay and weak live service updates. Poor player retention turned it into a financial disappointment for the studio and publisher.
LawBreakers (2017) – Boss Key Productions
Designed as a competitive shooter to rival the biggest multiplayer games, it failed to build a player base shortly after launch. The lack of interest ultimately led to the closure of the studio.
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