Mass Effect director Casey Hudson established new studio Humanoid Origin in 2021, with a view to craft a new “multi-platform AAA game, focussing on character-driven narrative in an all-new science fiction universe.” Naturally, there was plenty of excitement from Mass Effect fans looking for a spiritual successor to the beloved franchise – and with every slice of new concept art, there was more chatter about the studio’s upcoming project.
But as we’ve learned, 2024 is a year of disappointments, and with game funding drying up, Humanoid Origin has announced it will be shutting down without ever revealing more about its planned debut game.
“Earlier today, we informed our staff that Humanoid Origin will be shutting down,” the studio posted on LinkedIn. “Despite efforts to shield the studio from broader challenges in the industry, an unexpected shortfall of funding left us unable to sustain operations.”
“We’re heartbroken that we will not be able to bring our new science-fiction universe to completion. Our main concern at this time however is for our team, and we are committed to supporting them in their transition to new employment.”
“In our time together, the team achieved incredible progress, and demonstrated that it’s possible to do amazing work while fostering a culture of fun and creativity. We thank them for their talent, courage, and friendship. Thank you to everyone who supported us throughout our journey.”
Read: Bandai Namco Online set to be absorbed by Bandai Namco Entertainment
Why are video games not being funded anymore?
As noted, Humanoid Origin was seemingly not able to obtain funding to continue developing its vision for a new sci-fi game universe – a story that has become increasingly common in the games industry over the last year. Where previously, funding bodies (including Venture Capitalists / VCs) had ample resources to support new game development, many of these funds are now drying up.
There’s a multitude of factors contributing to this lack of funding. Audiences have tighter wallets due to various cost of living crises, forcing publishers and funding bodies to make tougher decisions about what to publish. Analysis of the current industry also suggests high interest rates may mean games are no longer a sound investment, and that funding bodies don’t have the runway to wait years for investment payoff.
Whatever the case, game studios are increasingly finding it difficult to secure funds to develop their games, as security and profitable game sales are no longer as certain as they once were. Faith in video game investments is tumbling, and so studios are required to find new means to secure a future.
At this stage, it’s unclear how the games industry will find a pathway out of this conundrum. For a long time, new projects relied on investment from funding bodies, with this investment paid off by game sales. Now, a range of factors are working against this arrangement, making it ever more difficult for developers to continue creating viable commercial games.
In the case of Humanoid Origin, it appears the studio’s runway simply ran out, with little recourse for continuing work on its debut project. As always in cases like these, our thoughts are with those now out of work.
