Kwalee Labs has been shut down less than a month after releasing Luna Abyss, with all nine developers laid off. Here is what happened and how the studio reached this point.
The team behind Luna Abyss spent seven years building their debut game.
Their celebration lasted 26 days.
On June 16, Hollie Emery, CEO and production director of Kwalee Labs, confirmed on LinkedIn that the entire nine‑person studio had been laid off, including herself. The closure comes less than a month after the game’s release.
Table of Contents
- When Did Kwalee Labs Close
- What Is Luna Abyss
- Why Did Kwalee Labs Shut Down
- What Did the CEO Say About the Layoffs
- How Did Bonsai Collective Become Kwalee Labs
- Who Was Affected by the Layoffs
- Is Luna Abyss Still Available
When Did Kwalee Labs Close
Kwalee Labs was shut down on June 15, 2026, with the announcement made public the following day.
The closure happened just 26 days after the release of Luna Abyss on:
- PC
- PlayStation 5
- Xbox Series X|S
- Xbox Game Pass (day one)
What Is Luna Abyss
Luna Abyss is a first‑person action game that blends:
- Bullet‑hell combat
- Atmospheric exploration
- Cosmic horror themes
Players control a prisoner forced to explore a massive abandoned megastructure beneath the surface of a moon.
The game received strong critical praise for its worldbuilding, art direction, and combat design.
Why Did Kwalee Labs Shut Down
Kwalee, the British publisher responsible for releasing Luna Abyss, closed the studio without offering any public explanation.
According to Emery, the decision:
“was completely out of our control.”
The shutdown comes despite:
- Positive critical reception
- Strong community support
- A seven‑year development cycle
The reasons remain unknown, but the timeline suggests financial or strategic restructuring at the publisher level.
What Did the CEO Say About the Layoffs
In her LinkedIn statement, Emery wrote:
“We are overwhelmed by the love and support that [Luna Abyss] has received both from our industry and critically from journalists and media outlets… Unfortunately, as of yesterday, the entire team has been made redundant; a decision that was completely beyond our control.”
She also confirmed that all nine developers are now seeking new positions.
How Did Bonsai Collective Become Kwalee Labs
The studio’s history is turbulent:
- 2019: Founded as Bonsai Collective by Hollie Emery
- 2019: Luna Abyss enters development
- Super Good Games (then Super.com) invests $3.5 million
- September 2025: Bonsai Collective goes bankrupt in the UK
- Kwalee acquires the studio and renames it Kwalee Labs
- May 21, 2026: Luna Abyss launches
- June 2026: Kwalee Labs is closed
The entire journey from founding to closure spans seven years, ending less than a month after the game’s release.
Who Was Affected by the Layoffs
All nine members of Kwalee Labs were laid off, including:
- Character artists
- Level designers
- Environment artists
- A narrative designer
- Programmers
- CEO and production director Hollie Emery
Emery shared a list of affected developers to help them find new opportunities.
Is Luna Abyss Still Available
Yes.
Luna Abyss remains available on all platforms where it launched.
But the team that created it is now fully disbanded.
Kwalee has not issued any public statement as of this publication.
Kwalee official site
https://www.kwalee.comLuna Abyss official page
https://www.lunaabyss.comHollie Emery LinkedIn
(public profile availability varies)