Tails Noir developer Eggnut is shutting down and laying off staff

"The world is on fire. The game industry is fucked. Call your mom."
tails noir eggnut studio closure

Tails Noir developer Eggnut has announced its immediate closure and studio-wide staff layoffs, due to “persisting complications” in obtaining funding for its new game projects. As a result of this challenge, work on the studio’s latest game, which has been in development for two years, will cease. The entire staff of 15 will also be laid off.

“This shit sucks,” Eggnut said on Twitter / X. “Unfortunately, due to persisting complications in funding, we are unable to continue the development of our new game that we’ve been working on for the past two years.”

“We will use our remaining budget to give our team of 15 talented professionals some paid time to regroup, find new jobs, and hopefully continue creating. Eggnut will continue supporting the two released Tails Noir games.”

Read: Deck Nine Games is laying off 20% of its workforce

As noted in the announcement, Eggnut was established in 2017 and since then, it has released a number of relatively well-received adventure games including Tails Noir, formerly known as Backbone. Despite the studio’s reputation, it appears to have run into similar challenges facing many smaller studios: a lack of available funding for upcoming games.

Recently, studios including Torus Games and Deck Nine Games have also detailed similar trouble – that funding is now incredibly difficult to access, and opportunities for developing smaller-scale game projects are drying up.

“It was great to have you by our side,” Eggnut said. “The world is on fire. The game industry is fucked. Call your mom.”

Our thoughts are with those impacted by the sudden closure of Eggnut.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.