Just Cause Co-Creator’s Studio Liquid Swords Cuts Staff Before Releasing Its First Game
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Key points
- Liquid Swords, founded by Just Cause co-creator Christofer Sundberg, announced layoffs.
- Sundberg cited market challenges but confirmed work continues on their first game.
- The studio joins other struggling NetEase-backed teams like Worlds Untold and Jar of Sparks.
Liquid Swords, the Sweden-based studio founded in 2020 by Just Cause co-creator Christofer Sundberg, has announced layoffs despite having yet to release a game. Sundberg, who previously co-founded Avalanche Studios in 2003 and served as its Chief Creative Officer until 2019, launched Liquid Swords in 2023. Backed by Chinese publisher NetEase, the studio cited “the present challenges of the video game industry” as the reason for reducing its workforce, saying the decision was made to “ensure the studio’s long-term sustainability.”
Sundberg stated that while the studio aimed to redefine game development with a small, expert-driven team and a sustainable work model, shifting market conditions prevented them from delivering within their original timeframe. He described the layoffs as “incredibly difficult” but said the company remains committed to its first project, a “hardboiled, open-world revenge story” built on Unreal Engine 5.
Liquid Swords is the latest NetEase-supported studio to struggle in recent months. Worlds Untold, founded by Mass Effect veteran Mac Walters, paused operations in November 2024, and in January 2025, Jar of Sparks, a AAA studio led by former Halo Infinite designer Jerry Hook, suspended development on its first title while seeking a new publishing partner.
