Spectre Divide and Mountaintop Studios are set to close down after failing to meet financial and engagement expectations. Here's the latest on the situation from Mountaintop Studios' CEO.
Tactical FPS game Spectre Divide is shutting down just six months post-launch, following a disappointing Season 1 and console debut. On March 13, the game's official Twitter (X) account shared an update with fans about the current state of the game and the studio.
Mountaintop Studios' CEO, Nate Mitchell, commented, "It's been two weeks since we launched Spectre Divide Season 1: Flashpoint." He expressed gratitude for the support received but noted, "Unfortunately, the Season 1 launch hasn’t achieved the level of success we needed to sustain the game and keep Mountaintop afloat."
The game saw an optimistic start with over 400,000 players and a peak concurrent player count of around 10,000 across all platforms within the first week. However, the studio struggled to maintain active players and generate sufficient revenue to keep operations running.
In December 2024, The Verge reported that Mountaintop Studios was facing severe financial challenges, with the console launch and Season 1 being their last hope to turn things around. Spectre Divide's Game Director, Lee Horn, mentioned that despite marketing efforts, server issues at launch hindered the game's momentum. Mitchell added, "If they aren’t into season one, the way we hope they are, we’ll have to take a hard look at if we should keep going on as we are, or if players are telling us this isn’t what we want."
Spectre Divide is scheduled to go offline within 30 days. The studio plans to disable new purchases and refund money spent by players since the Season 1 relaunch, with more details to be announced soon.
The closure comes as a surprise, especially after Mountaintop Studios successfully raised $30 million in funding in 2024. The investment came from top industry players like Anthos Capital, RX3 Growth Partners, A16Z GAMES, and several angel investors, as announced on their LinkedIn account.
Despite the substantial funding, Mitchell admitted, "We pursued every avenue to keep going, including finding a publisher, additional investment, and / or an acquisition. In the end, we weren’t able to make it work. The industry is in a tough spot right now."
He further elaborated on their vision, "We wanted to deliver something innovative and original in a crowded genre that would bring friends together around unforgettable moments. We shook up the format, created a fresh art style and universe, and partnered with some of our heroes. All of us knew from the beginning that the odds were against us, but that’s what we signed up for. It was never a surefire bet. We did it anyway."
Spectre Divide joins the ranks of live-service games like Multiversus, Babylon’s Fall, Concord, and others such as the cancelled The Last of Us Online and the reported God of War live service game that have struggled to succeed in the competitive live-service gaming market.
Mitchell also announced that Mountaintop Studios will cease operations by the end of the week, citing a lack of remaining funds. He stated, "Since the PC launch, we stretched our remaining capital as far as we could, but at this point, we’re out of funding to support the game. This means Mountaintop will be closing its doors at the end of this week."