3 months after laying off a bunch of people, Splash Damage has become 'Splash Damage Group' and acquired another studio

In the latest example of 'I don't understand business,' Splash Damage, which just three months ago made major layoffs so it could "remain agile and adaptable in what has been a very challenging market," has acquired Gamepires, the maker of the open world survival game Scum.

The acquisition, backed by Emona Capital and part of "a refreshed strategic direction," will see the two studios combined into the Splash Damage Group, which "focus on expanding its premium development and co-development partnerships in conjunction with scaling the Scum franchise and investing in new IP." Former Splash Damage chief financial officer Ben Hopkinson will take the reins as CEO.

"This is a defining moment for Splash Damage," Hopkinson said. "Our independence and experience, together with the acquisition of Gamepires, strengthens our ability to scale live-service titles and build new premium multiplayer experiences. Alongside the strategic support and industry network of Emona Capital, this new structure provides stable and positive future for Splash Damage."

As of 2024, Emona Capital is also the majority owner of Relic Entertainment, and has investments in Blackbird Interactive.

It's not unusual for game studios to eat each other—the big deals, like Microsoft and Activision, get the attention, but it happens at smaller scales, too—and investment firms like Emona are often involved. But to put a bunch of people out of work, and then buy a whole bunch of new people for some undisclosed but presumably hefty amount of money? That seems really crappy.

"While we did recently conduct layoffs, bringing the teams together around Scum gives Splash Damage Group immediate, meaningful work to focus on," Splash Damage told PC Gamer. "That stability has been important for protecting roles and giving the studio a solid foundation for its future. Splash Damage Group is currently just under 150 people, and we will be working closely with Emona to grow the group over the next few years."

I suppose that's fair as far as it goes: Splash Damage hasn't released a game since the long-forgotten Stadia exclusive Outcasters in 2020. But surely it would've been easier to just come up with an idea for its own new game? Business, man. I just don't get it.