Impressive New Xbox Game Loses Its Entire Dev Team After A Month

You may remember that one of May 2026's Xbox Game Pass titles was Luna Abyss - a single-player action adventure title that received some pretty great reviews at launch, and currently holds a "Very Positive" rating on Steam too.

The release of that game was back on May 21st, and as of yesterday (June 16th), it's already lost its entire development team. Kwalee Labs CEO Hollie Emery confirmed this in an official statement on LinkedIn:

"Unfortunately as of yesterday, the entire team has been made redundant; a decision that was completely outside of our control. As a result, the entire team are available for work as of today.

The team are an incredibly talented, senior bunch of developers - independent spirit mixed with an AAA-class dedication to quality. Specialists in Unreal Engine, and absolute pros at delivering high-quality, award-winning, optimised projects to vision. I am so proud of what we were able to achieve with Luna Abyss, for such a small team, in a genre that is incredibly difficult to hit a good review score in!"

As you can see, the CEO says it's a "decision that was completely outside of our control", so it's impossible to know exactly what happened - we can only speculate that sales have been lower than anticipated. The game was apparently in development for seven years prior to release, so it likely had high expectations behind it.

It's been mentioned before how joining Xbox Game Pass can make a big difference for indie developers in terms of funding, so we doubt the issue is on the Xbox side specifically. Luna Abyss also released on PC and PS5 at the same time, so again, we assume that sales haven't been strong enough on those platforms either.

Whatever the case may be, our thoughts are with the nine team members who are now looking for work in the industry, and we wish them all the best and hope they find new roles ASAP.

Did you play Luna Abyss? What did you think of it? Tell us in the comments down below.