What Triggered the Implosion?
Within hours, dozens of Intrepid Studios employees updated their LinkedIn profiles to “open for work,” including Director of Communications Margaret Krohn. Krohn’s brief LinkedIn blog hinted at a sudden, unexpected collapse.
Shortly after, founder, CEO, and Creative Director Steven Sharif posted a personal statement in the official Ashes of Creation Discord, confirming his resignation in protest of board‑directed actions he could not ethically support. The statement also disclosed that the board issued WARN Act notices and announced a mass layoff.
Key Statements from Leadership
Sharif’s Discord message (paraphrased):
- Control of the company shifted away from him.
- The board directed actions he could not ethically agree with.
- He resigned rather than lend his name to those decisions.
- Senior leadership followed suit, leading to WARN Act notices and layoffs.
Krohn’s LinkedIn note simply expressed disappointment and a focus on “the good” that had been achieved.
Financial and Development Background
Announced in 2016, Ashes of Creation raised over $3.2 million on Kickstarter (2017). The studio later sold pre‑release access, prompting early skepticism due to founder Steven Sharif’s controversial MLM past.
Development milestones:
- Late 2021: Switched from Unreal Engine 4 to Unreal Engine 5.
- Early 2023: Launched on Steam Early Access while still in Alpha.
Steam Early Access Fallout
The Early Access launch was controversial. Sharif argued the game needed broader player feedback, claiming funding was not an issue because he would continue to invest personal capital.
Reality on Steam:
- User rating: 51% “Mixed”.
- Peak concurrent players: 31.8 K at launch, declining thereafter.
- Estimated sales: 220 K–320 K units (~$11–$16 M gross).
- Net revenue after Valve’s 30% cut: $7.7–$11.2 M.
Legal and Refund Controversy
The original Kickstarter promised a full refund to backers if the game never launched. Since the game did launch (albeit in a very early state), many backers argue the promise is effectively void, though it was never a legally binding contract.
Industry Implications
The collapse adds to a string of recent Western MMO failures, including Amazon’s “New World” shutdown and NetEase‑pulled projects from veterans Greg Street and Jack Emmert.
Industry veterans cited Warframe as a more sustainable model: start small, iterate, and expand gradually—an approach that Intrepid Studios failed to adopt.