Zynga’s decision to shut down Echtra Games, the studio behind *Torchlight 3*, marks a significant turn of events in the gaming industry. This closure, announced in early June 2025, comes just four years after Zynga acquired Echtra Games with the intention of expanding into the PC and console gaming market. The move has left many industry observers questioning Zynga’s strategic direction and the fate of the unannounced projects Echtra Games was developing.
The Rise and Fall of Echtra Games
Echtra Games was founded in 2016 by Max Schaefer, a co-creator of the *Diablo* franchise and one of the founders of Runic Games, the studio that created the first two *Torchlight* games. Schaefer’s vision for Echtra was to create “the best in multiplatform gaming”. The studio’s first and only release was *Torchlight 3*, which launched in early access in June 2020 and was fully released in October 2020.
In March 2021, Zynga acquired Echtra Games for an undisclosed sum. At the time, Zynga CEO Frank Gibeau stated that the acquisition would help the mobile-focused company become a bigger player in the PC and console gaming space. Echtra Games was tasked with developing a new cross-platform RPG in collaboration with Zynga’s NaturalMotion studio. However, this project never saw the light of day.
Zynga’s Strategic Realignment
Zynga’s decision to shut down Echtra Games is attributed to a “strategic realignment of the company’s resources and priorities”. In a statement released to the media, Zynga stated that the closure was a difficult decision but necessary for the company’s future. The company promised to work closely with impacted employees to ensure they are treated with respect and consideration during the transition.
The closure of Echtra Games is not an isolated incident. Zynga, which is a subsidiary of Take-Two Interactive, has been undergoing a period of restructuring. In April 2024, Take-Two laid off approximately 5% of its workforce and canceled several projects. Additionally, just three months prior to the Echtra Games announcement, Zynga announced the impending shutdown of NaturalMotion’s *Star Wars: Hunters*, a decision that also included the cancellation of its planned Steam release.
The Impact on Employees
The closure of Echtra Games has resulted in the loss of jobs for over 60 employees. Many of these employees are seasoned developers with experience at companies such as Blizzard, Disney, Electronic Arts, and Runic Games. The sudden closure has left these individuals searching for new opportunities in a competitive job market.
Melissa Gainer, a former senior producer at Echtra Games, expressed her disappointment on LinkedIn, stating that she was proud of the progress the team had made on their unannounced AAA ARPG. Several other former employees have also posted about being laid off and seeking new roles.
The Unreleased Project
One of the biggest disappointments stemming from the closure of Echtra Games is the cancellation of their unannounced cross-platform RPG. This game, which was being developed in partnership with NaturalMotion, was intended to be Echtra’s first title under the Zynga banner. While details about the game were scarce, it was described as a AAA action RPG with cross-platform multiplayer capabilities.
The cancellation of this project means that Echtra Games will not have the opportunity to release an original IP. This is particularly disheartening for fans of Max Schaefer and his team, who were eager to see what they could create with the backing of a major publisher like Zynga.
The Future of Torchlight
The *Torchlight* franchise now sits in a precarious position. With the closure of Echtra Games, the future of the series is uncertain. *Torchlight 3* remains in the hands of Perfect World Entertainment, but it is unclear whether they have plans to continue developing the game.
The *Torchlight* series has a dedicated fan base that appreciates its fast-paced action, colorful graphics, and deep character customization. Whether another studio picks up the mantle and continues the series remains to be seen.
Industry Analysis
The closure of Echtra Games raises concerns about the stability of game development studios under larger corporations. While acquisitions can provide studios with the resources and support they need to create ambitious projects, they can also lead to restructuring and closures when corporate priorities shift.
Zynga’s decision to shut down Echtra Games may be indicative of a broader trend in the gaming industry, where companies are increasingly focused on mobile gaming and free-to-play titles. While these types of games can be highly profitable, they often come at the expense of more traditional PC and console games.
The closure also highlights the challenges of cross-platform development. While the idea of playing games on multiple devices is appealing, it can be difficult to execute in practice. Developing a game that looks and plays well on both mobile devices and PCs requires a significant investment of time and resources.
A Missed Opportunity
The closure of Echtra Games represents a missed opportunity for both Zynga and the gaming industry as a whole. Echtra Games had the potential to bring fresh ideas and innovative gameplay to the action RPG genre. The studio’s talented team, led by Max Schaefer, had a proven track record of creating successful games.
Ultimately, Zynga’s decision to shut down Echtra Games underscores the volatile nature of the gaming industry and the challenges faced by studios operating under larger corporate entities. While the reasons behind the closure may be complex, the result is the loss of a promising studio and the cancellation of a highly anticipated game.
Conclusion: A Legacy Cut Short
The closure of Echtra Games marks the end of a chapter in the studio’s history and leaves a void in the gaming industry. Founded by veterans of Blizzard North and Runic Games, Echtra possessed a rich legacy and a passion for creating engaging action RPG experiences. Despite its acquisition by Zynga in 2021 with the promise of cross-platform innovation, the studio’s journey was cut short, leaving its unannounced project unrealized.
This decision serves as a stark reminder of the ever-shifting priorities within the gaming landscape and the challenges faced by studios operating under larger corporate structures. While the future of the *Torchlight* franchise remains uncertain, the impact of Echtra Games and its talented team will not be forgotten by fans of the genre. The industry mourns the loss of a promising studio, its talented employees, and the potential for groundbreaking games that will now never come to fruition.