10:10 Games Reportedly Faces Layoffs Following Funko Fusion's Underperformance on Nintendo Switch

In a recent development impacting the video game industry, 10:10 Games—known for its action-adventure title Funko Fusion—has reportedly laid off a number of employees following the game's disappointing commercial and critical performance on platforms including the Nintendo Switch.

According to a new report from Insider Gaming, which was also covered by Eurogamer, approximately 20 unconfirmed layoffs have taken place since the title's 2024 release.

The situation highlights the ongoing challenges faced by game developers amidst a competitive market and shifting consumer expectations. Funko Fusion, developed and published by 10:10 Games, launched in 2024 with anticipation from fans of both the Funko brand and the Nintendo Switch's robust library.

Unfortunately, anonymous sources cited by Insider Gaming described the game's performance as a "complete commercial and critical failure," suggesting that disappointing sales and reviews played a direct role in the staff reductions.

These sources further allege that some affected employees were on holiday when the layoffs occurred and felt compelled to participate in consultation meetings despite time zone differences, complicating an already difficult transition. Reporting also points to dissatisfaction regarding severance packages.

Individuals familiar with the matter claim that only the minimum legally required severance was offered, and any remaining holiday leave was unpaid.

In addition, it's reported that staff were encouraged to use accrued holiday days before the official layoff notification, presumably to mitigate post-layoff liabilities for the company.

While layoffs primarily impacted junior staff and operational roles, higher-level management and senior developers appear to have been retained in preparation for the studio's next project. Leadership at 10:10 Games, including studio heads Paul Flanagan and Arthur Parsons, reportedly intended to take public responsibility for the layoffs and demonstrate transparency to their team.

However, as of this writing, no formal statement has been released by the company.

If confirmed, 10:10 Games would join the ranks of other studios—such as Ubisoft and Phoenix Labs—who have taken similar measures in recent months as part of broader restructuring efforts in the gaming industry. Funko Fusion's underperformance and the resulting layoffs underscore the volatility of game development for high-profile platforms like Nintendo Switch, where the competition and consumer demands remain relentless.

Game developers and industry observers alike continue to watch closely as studios adapt, restructure, and plan for future success amid evolving market conditions.

Nintendo Switch 10:10 Games Funko Fusion Nintendo Switch