Dune Awakening publisher Funcom's restructuring shutters studio behind Metal: Hellsinger

Funcom has shuttered The Outsiders, its Stockholm-based studio known for the famous rhythm shooter Metal: Hellsinger, as part of company-wide layoffs announced earlier this month. The closure of The Outsiders was confirmed by studio founder and creative director David Goldfarb on October 6.

This closure has affected the entire team at the 10-year-old outfit, which Funcom acquired in 2021 for an undisclosed sum shortly before Metal: Hellsinger was revealed.

Goldfarb shared the news on BlueSky, stating:

I have not had much time to process the news, but all of us at The Outsiders and Funcom Stockholm have been affected by the layoffs at Funcom, and our 10-year-old studio will be closing.

The layoffs are reported to be due to Funcom’s shift in priorities amid live operations for Dune: Awakening, which launched earlier in June 2025, and went on to sell over one million copies in its first two weeks, becoming Funcom’s fastest-selling title and biggest release in its 32-year history.

Dune: Awakening peaked at 189,333 concurrent players on Steam by June 15, but unfortunately, it has declined to a daily average of roughly 20,000 simultaneous players. Despite the game’s initial success, Funcom announced on October 1 that it would undergo a restructuring process across projects and studios, as it prepares for a major console release in 2026.

Funcom stated, “Unfortunately, this also means having to say goodbye to cherished colleagues.” Funcom, however, did not specify the total number of staff members affected.

Goldfarb went on to reflect on the studio’s journey in his post, noting that the studio rose from the ashes during the cancellation of an early project called Darkborn. Goldfarb wrote:

Many of us had survived a near-death studio experience years back when Darkborn was cancelled, and because of this team’s loyalty and refusal to quit, Metal: Hellsinger was born.

It will forever be a high point for me personally, and I will be forever grateful we got to make it and for the wonderful team and partnerships that made it happen.

Metal Hellsinger was critically acclaimed for its catchy, heavy metal soundtracks featuring vocalists from bands like Arch Enemy, Lamb of God, and Trivium. The game achieved one million players across PC, PlayStation, and Xbox by December 2022, and surpassed 3.3 million players across all platforms by October 2024.

Funcom has been owned by Tencent since 2020 and is known for other IPs like Conan Exiles. The company hasn’t commented on the studio’s fate or beloved IPs like Metal: Hellsinger, pretty much leaving its legacy in limbo amid turbulence in the games industry.