The world of blockchain gaming was recently shaken by the news of significant layoffs at ATMTA, the company behind the highly anticipated Star Atlas AAA game. The restructuring saw a reduction in the company's workforce by a staggering 73%, a move that has sent sobering ripples through the gaming and crypto communities.
The Announcement of Layoffs
The Reasons Behind the Layoffs
ATMTA co-founder and CEO Michael Wagner revealed that the layoffs were a necessary step to preserve the project's long-term goals. The company had to make the difficult decision to release many amazing people from their team. The layoffs were not a decision taken lightly, nor was it a path they desired, but it was the best way to position the company for future growth.
The layoffs were primarily driven by challenging market conditions and the need to adjust spending to accommodate a long runway for the development of the Solana NFT-powered outer space game. ATMTA reevaluated its budget and development needs to ensure it could maintain its infrastructure.
The Impact on the Star Atlas Team
The layoffs resulted in a reduction of the team from a recent total of 167 people to 45. This included contractors and employees from partner studios that were tapped to co-develop the game. The downsizing could impact game development, particularly when it comes to building out the robust, full-sized vision of the game using Unreal Engine, Epic Games’ industry-standard toolkit for “AAA” games.
The Aftermath of the Layoffs
The New Focus of Star Atlas
Despite the downsizing, the Star Atlas team is forging ahead and plans to rebuild its Unreal Engine team in time. The long-term target hasn’t changed, but the Star Atlas team is shifting gears amid a difficult crypto market and financial setbacks. The team is now focusing on products closer to release that can potentially create traction and increase revenue for Star Atlas, fueling its longer-term aims, their Discord announcement says.
The Future of Star Atlas
The future of Star Atlas, despite the layoffs, remains bright. The team is optimistic about the future and building games on the Solana blockchain. Solana has faced significant challenges of its own over the past several months, but the Star Atlas team remains committed to their vision and the potential of the platform.
The Role of the Crypto Market in the Layoffs
The Impact of the FTX Collapse
A significant factor in the layoffs was the $16 million that ATMTA lost when FTX collapsed in November. At the time, Wagner said that the startup had lost about half of its funds, which became inaccessible when FTX closed withdrawals. This loss significantly impacted the company's financial stability and contributed to the need for layoffs.
The Depreciation of the ATLAS Token
Another contributing factor was the depreciation of the ATLAS token, the native token of Star Atlas. A third of the revenue from ship sales was held in the ATLAS token, which has since suffered a significant depreciation. This depreciation further strained the company's finances and contributed to the need for restructuring.
The Reaction from the Gaming Community
Some users expressed disappointment and concern, while others expressed support for the company and optimism for the future of Star Atlas.
The Future of Blockchain Gaming
The Potential of Solana
Despite the challenges, the future of blockchain gaming, particularly on the Solana platform, remains promising. The Star Atlas team remains committed to Solana and believes that the work they are doing, building on on-chain gaming logic, is only possible on a network like Solana.
The Challenges Ahead
The road ahead for Star Atlas and other blockchain games is not without challenges. The volatility of the crypto market, the technical challenges of developing on the blockchain, and the need for sustainable revenue models are all hurdles that need to be overcome.
Conclusion
The layoffs at Star Atlas are a reminder of the volatility and uncertainty in the world of blockchain gaming. However, they also highlight the resilience and determination of teams like ATMTA, who continue to push forward and innovate in the face of adversity. The future of Star Atlas and blockchain gaming as a whole remains bright, and we look forward to seeing what the future holds.