Spanish video game company Tequila Works declares bankruptcy
Tequila Works, one of the largest video game development companies in Spain, has declared bankruptcy. This was announced by the Madrid studio, founded in 2009 and responsible for such hits as Dead light And rhymethrough a statement. According to the GamesIndustry website, the start of this lawsuit is due to the protracted crisis situation that the video game sector has been experiencing in recent years.
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New Tequila Works CEO Terence Mosca has taken on the responsibility after studio founders Raul Rubio and Luz Sancho left their posts in recent days. In a statement, Mosca said he was “proud of the team’s accomplishments” but “protracted market conditions” led to the company being forced to file for insolvency.
“We are doing everything we can to provide support and guidance to our teams during this difficult time,” Mosca said in the briefing.
An image of “Song of Nunu”, the newest video game developed by Tequila Works in collaboration with Riot Games.
The last game released by the studio was Song of Nunudevelopment in collaboration with Riot Games, creators of the successful game League of Legendswhich in turn is owned by Chinese entertainment giant Tencent.
As you may have known VanguardTequila Works was currently working on two projects financed by the company, but their recent cancellation has left the studio in a precarious financial position.
Already at the beginning of last October, Tequila Works announced through a publication on LinkedIn the dismissal of several employees and the cancellation of one of the not yet announced projects. The inconsistency of the second project was the reason for the haste of events.
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The difficulties faced by Tequila Works, which ended in bankruptcy, are very similar to the situation that happened last March with the veteran Barcelona studio Novarama, which announced its closure after receiving a large investment from Tencent.
Tequila Works’ “Gylt” was the first exclusive game for Google’s failed cloud gaming service Stadia.
Tequila Works declaring itself insolvent is another blow to the video game industry in Spain, as it affects a studio that has created some of the most successful games developed in that country. Without going further, according to the Devuego portal, Deadlight And rhymeare the two best-selling Spanish games in history, with 4.9 and 4 million copies sold respectively.
Layoffs and research closures
Global crisis in the video game sector
The video game sector is currently experiencing a serious international crisis. Market saturation caused by a large supply of games is one of the main reasons, but there are others. We also need to add the declining purchasing power of players and the possibilities of big games such as Fortniteto retain users and the haphazard planning of many companies in the pandemic era when video game consumption has skyrocketed.
The video game industry is already facing more than 13,000 layoffs and dozens of studio closures in 2024, although the most notable cases have been the video game divisions of Microsoft and Sony, which have laid off 1,900 and 900 people this year. workers accordingly.
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