Tech firm Sandsoft plans to dismiss approximately 65 workers and shut down two of its development studios.
In a significant move, mobile game developer Sandsoft has announced the closure of its studios in Riyadh, Saudi Arabia, and Barcelona, Spain, resulting in the layoff of approximately 65 employees. The decision is part of a strategic shift towards concentrating resources on publishing, an area where the company has already demonstrated significant growth and sees larger opportunities for sustainable, long-term success.
Sandsoft's CEO, David Fernández, explained that the company is focusing more on publishing, an area where they have already shown significant growth. The layoffs are affecting employees working on internally developed games, while those working in publishing are safe.
The Riyadh studio, which opened three years ago, and the Barcelona studio, which was established in 2023, will be closed as part of this strategic change. Sandsoft is, however, considering transitioning some of the affected members into the publishing department, but no confirmation has been given yet.
Fernández compared Sandsoft's ambition to the large organizations in the U.S., such as Activision, Take-Two, and Electronic Arts, and the companies in China, like Tencent and NetEase, highlighting the company's aspirations to become a mega publisher, aiming to be a leader in the mobile games industry, both regionally and globally. This ambition was expressed by Fernández in 2023.
Sandsoft signed three new games in March of this year, with several more games in testing and scheduled for release. The company has offices in Finland and China in addition to the ones in Saudi Arabia and Spain.
In a separate development, the Independent Games & Entertainment Association (IGEA) has launched Game On Australia to assist and promote local developers. This initiative is not directly related to the closure of Sandsoft's studios but aims to support the Australian gaming industry.
The closure is not a reflection of the quality of work or talent at these studios, but rather a deliberate move to prioritize publishing as the company’s core strength and future direction. Sandsoft remains committed to its mission of delivering exceptional gaming experiences to its global audience.
[1] Sandsoft Press Release, [accessed 2023-05-01] [2] Fernández, D., 2023, Sandsoft's Ambition to Become a Mega Publisher [interview] [4] Sandsoft Barcelona Studio Timeline, [accessed 2023-05-01] [5] Sandsoft Riyadh Studio Timeline, [accessed 2023-05-01]
- With its strategic shift, Sandsoft is planning to increase its focus on publishing, a sector where it has shown significant growth, as technology advances continue to revolutionize the business of mobile gaming.
- Despite the closure of the Riyadh and Barcelona studios, Sandsoft aspires to grow into a mega publisher, emulating the success of giants such as Activision, Take-Two, and Electronic Arts, with an aim to lead the mobile games industry both regionally and globally.
