Ashes of Creation Studio Suddenly Shuts Down, Developers Left Unpaid

Intrepid Studios abruptly lays off all employees, leaving them without final paychecks or severance

Published on Feb. 3, 2026

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Intrepid Studios, the developer behind the highly anticipated fantasy MMO Ashes of Creation, has suddenly shut down, laying off all of its employees without paying their final paychecks or providing severance. The studio's head of marketing, Margaret Krohn, detailed the abrupt closure, stating that on January 31, employees were informed via a "confusing email" that they were being laid off, with no final compensation owed to them.

Why it matters

The shutdown of Intrepid Studios and the fate of Ashes of Creation is a major blow to the gaming community, as the game had generated significant hype and crowdfunding support since its Kickstarter campaign in 2017. The sudden closure and lack of compensation for developers raises concerns about the financial stability and management of the studio, as well as the future of the game itself.

The details

According to Krohn's account, the layoffs began on January 28, when 100 developers were informed they would be losing their jobs. The following day, Krohn received confirmation of which members of her team would be laid off. By January 31, it became clear that the entire studio was being shut down, with employees learning via email that they would not receive their final paychecks, 60 days' notice and pay as outlined by the WARN Act, or other compensation owed to them.

  • On January 28, Intrepid Studios informed 100 developers that they would be laid off.
  • On January 29, Krohn received confirmation of which members of her team would be laid off.
  • On January 31, all Intrepid Studios employees were informed via email that they were being laid off and would not receive their final paychecks or other compensation owed to them.

The players

Intrepid Studios

The San Diego-based game development studio behind the fantasy MMO Ashes of Creation.

Margaret Krohn

The head of marketing at Intrepid Studios, who detailed the abrupt closure of the studio in a post on X.

Steven Sharif

The director of Ashes of Creation, who announced his resignation in protest on January 31 after losing control of the company.

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What they’re saying

“What matters most to me now are the people – both the players and developers. To the players: the entire development team was working extremely hard, pulling long hours, and wishes with all our hearts that we could give you Ashes of Creation. There are no words that fully express how sorry we are that this journey ended this way. You should pursue a refund, you deserve it. To my colleagues: this team is truly a family. The culture we built together is something I have never experienced anywhere else. In the midst of heartbreak and uncertainty, we have come together to review resumes, help with portfolios, share job leads, and support one another emotionally.”

— Margaret Krohn, Head of Marketing, Intrepid Studios (X)

“I can make a limited statement in my personal capacity and not on behalf of the company, regarding the situation. Control of the company shifted away from me, and the Board began directing actions that I could not ethically agree with or carry out. As a result, I chose to resign in protest rather than lend my name or authority to decisions I could not ethically support.”

— Steven Sharif, Director, Ashes of Creation (Discord)

What’s next

It remains unclear who is now in control of Intrepid Studios or what the future holds for Ashes of Creation, as the game has been removed from sale on Steam and backers are demanding refunds.

The takeaway

The sudden and abrupt closure of Intrepid Studios, leaving developers unpaid and the fate of Ashes of Creation uncertain, highlights the precarious nature of the game development industry and the need for greater financial transparency and worker protections in the sector.