Metal: Hellsinger Developer The Outsiders Shut Down by Funcom Despite Critical Success, 10-Year Studio Closes Amid Dune Layoffs

The Outsiders, the 10-year-old Swedish studio behind the critically acclaimed rhythm FPS Metal: Hellsinger, is shutting down as part of broader layoffs at parent company Funcom following the launch of Dune: Awakening. Founder and creative director David Goldfarb announced October 5, 2025 on Bluesky that all of us at The Outsiders and Funcom Stockholm have been affected by the layoffs at Funcom and our 10 year old studio will be closing. The closure represents another tragic example of the games industry laying off developers who created successful, beloved titles, with The Outsiders surviving Darkborn’s 2020 cancellation only to be shuttered three years after Funcom acquired the studio in 2021.

game studio office closing with empty desks showing layoffs

The Full Studio Closure Statement

David Goldfarb’s Bluesky message captured the devastating impact on the roughly 60-person team. Many of us had survived a near-death studio experience years back when Darkborn was cancelled, and because of this team’s loyalty and refusal to quit, Metal: Hellsinger was born, he wrote. It will always be a high point for me personally and I will be forever grateful we got to make it and for the wonderful team and partnerships that made it happen. The statement acknowledged that we had hoped to do something even better this time but things don’t always go the way you hope.

Despite the closure, Goldfarb emphasized determination to continue: We are not giving up, and we are going to try to continue on in some new form. If you think you can help in any way, with business leads, placement for employees, guidance, whatever it is, I would be genuinely grateful if you reach out here. Change is always tough and right now we are all hurting. That direct plea for assistance demonstrates how abruptly the closure happened, giving the team minimal time to secure alternative employment or funding for continuing their work independently.

From Darkborn’s Ashes to Hellsinger’s Success

The Outsiders was founded in 2015 by David Goldfarb, who previously served as game director on Battlefield 3 and Payday 2 at DICE and Overkill Software. The studio’s first project, originally announced in 2016 as Project Wight, focused on playing as a young humanoid monster seeking revenge against the humans who slaughtered its tribe. The first-person stealth action game received a grisly gameplay reveal in 2019 after years of development, generating substantial buzz for its unique perspective inverting traditional fantasy tropes where players typically hunt monsters.

Metal Hellsinger rhythm FPS gameplay showing demon shooting

However, Darkborn (as it was eventually renamed) was cancelled in 2020 after resource and funding challenges made continuing development unsustainable. Perhaps one day we will return to it, The Outsiders stated at the time. That cancellation nearly killed the studio entirely, with the team facing potential dissolution. The survivors rallied around a new concept: a rhythm-based first-person shooter set in Hell where players blast demons to the beat of heavy metal music performed by legendary metal vocalists.

Metal: Hellsinger’s Critical and Commercial Performance

Metal: Hellsinger launched September 15, 2022 for PlayStation 5, Xbox Series X/S, and PC, earning Overwhelmingly Positive reviews on Steam with over 95 percent approval from thousands of ratings. Game Informer awarded it 9 out of 10, with reviewer Wesley LeBlanc writing What the game gets right far outshines what it doesn’t, and the developer, The Outsiders, has created what I hope is just the start of a new FPS franchise set in Hell. VGC called it an incredibly well-realised concept, packed to bursting with excellent music, unique weapons and a gameplay loop that’s instantly addictive.

The game featured an all-star metal lineup including Serj Tankian (System of a Down), Matt Heafy (Trivium), Alissa White-Gluz (Arch Enemy), Randy Blythe (Lamb of God), Mikael Stanne (Dark Tranquillity), Björn Strid (Soilwork), James Dorton (Black Crown Initiate), and Dennis Lyxzén (Refused). Each vocalist performed an original track for different levels, with the music dynamically layering as players maintained rhythm accuracy. The innovative soundtrack elevated Metal: Hellsinger beyond typical rhythm game territory, appealing to both FPS enthusiasts and metal fans who appreciated the genre credibility.

The Funcom Acquisition and Dune Context

Funcom acquired The Outsiders in August 2021, one year before Metal: Hellsinger’s release. At the time, Funcom CEO Rui Casais stated We are very excited about the projects The Outsiders has under development and the opportunity to work together. The acquisition occurred during Funcom’s broader expansion following Tencent’s 2020 purchase of Funcom for approximately $148 million. Tencent’s backing enabled Funcom to acquire multiple studios and invest heavily in Dune: Awakening, the survival MMO based on Frank Herbert’s sci-fi franchise.

corporate acquisition showing parent company ownership structure

Dune: Awakening launched in 2025 to mixed reception. While Funcom celebrated it as the biggest release we’ve had in our 32-year long history of making great games, player retention issues and competitive pressure from other survival games created financial challenges. The game’s development consumed massive resources across Funcom’s global studios including locations in Norway, Romania, Portugal, and North Carolina. When Dune failed to generate expected returns, Funcom announced layoffs last week to focus on the game’s ongoing live service support, with The Outsiders’ closure representing the most severe consequence.

The Cruel Irony of Success

The Outsiders’ shutdown exemplifies the gaming industry’s most frustrating pattern: developers creating successful, beloved games still getting laid off when unrelated projects underperform. Metal: Hellsinger received critical acclaim, sold well enough to justify a VR version that launched in 2024, and cultivated passionate communities that continue playing years after release. Reddit user DrNick1221 expressed the community sentiment: Metal Hellsinger was fantastic, and the soundtrack was incredible. I still find myself revisiting those tracks occasionally. ‘No Tomorrow,’ featuring Serj, is definitely my favorite.

Yet none of that success mattered when Funcom needed to cut costs following Dune: Awakening’s disappointing performance. The studio’s Stockholm location made it vulnerable when Funcom decided which teams to eliminate, with geographic consolidation often driving closure decisions as much as project performance. The cruel calculation means The Outsiders paid the price for Dune’s struggles despite having zero involvement in that game’s development, punishment for being in the wrong portfolio when the axe fell.

What The Outsiders Was Working On

Goldfarb’s statement that we had hoped to do something even better this time confirms The Outsiders was actively developing a follow-up project when the closure happened. Whether this meant Metal: Hellsinger 2, a new IP, or something else entirely remains unclear since Funcom and The Outsiders never officially announced any post-Hellsinger projects. The VR version of Metal: Hellsinger launched in 2024, but that adaptation likely required minimal resources compared to full sequel development.

unfinished video game project showing cancelled development

Reddit users speculated about whether the VR adaptation contributed to the closure, but consensus suggests the VR game had small budgets as mere adaptations rather than ground-up development. The more likely scenario is that The Outsiders pitched or began early development on an ambitious new project that Funcom greenlit, only for those plans to evaporate when Dune’s underperformance forced portfolio consolidation. That unannounced project now joins Darkborn in the graveyard of cancelled games that never reached players.

The Soundtrack That Almost Reached Streaming

One particularly painful detail from the closure involves Metal: Hellsinger’s legendary soundtrack. Reddit user DrNick1221 noted: They had been working for a long time to get the music onto streaming services, but from the looks of it, that might not happen anymore. The complex licensing involving multiple record labels, musicians’ individual agreements, and Funcom’s publishing rights created bureaucratic nightmares preventing easy streaming distribution. With The Outsiders closing, the momentum to finalize those deals likely dies as well.

The soundtrack’s absence from Spotify, Apple Music, and YouTube Music frustrated fans who wanted legitimate ways to support the artists and revisit the music outside the game. Tracks like No Tomorrow featuring Serj Tankian, Stygia with Matt Heafy, and others represented career highlights for many participating metal vocalists. The inability to monetize the soundtrack through streaming represents lost revenue for everyone involved, making the situation worse for both Funcom and the unemployed Outsiders developers who might have received royalties.

Industry Context: 2025’s Studio Closures

The Outsiders joins a devastating list of shuttered studios in 2025. Game Informer noted that the closures include Monolith Productions (Middle-earth: Shadow of Mordor, F.E.A.R.), Player First Games (MultiVersus), Cliffhanger Games (Black Panther), and The Initiative (Perfect Dark). Each closure represents hundreds of developers losing their livelihoods despite often working on projects that generated substantial revenue and critical acclaim for their parent companies.

The pattern reflects gaming industry consolidation’s dark side. Large publishers acquire successful independent studios, integrate them into broader portfolios, then shut them down when unrelated corporate priorities shift. Tencent buying Funcom, Funcom buying The Outsiders, then Funcom closing The Outsiders to pay for Dune’s shortcomings demonstrates how acquisition cascades concentrate risk. Independent studios might fail, but their teams often reform quickly. Acquired studios that fail take their developers’ careers with them, destroyed by decisions made thousands of miles away.

Community Reactions and Tributes

The Reddit r/Games thread announcing the closure received 645 upvotes with 50 comments, predominantly expressing sadness and frustration at the industry’s treatment of successful developers. User Ryotian wrote: I found so many skilled artists through that game! It’s a shame— I had a great time playing it, and I’m disappointed that it looks like we won’t see a sequel. Another user ZandatsuDragon lamented: I’m really disappointed because it felt like a heartfelt tribute to metal music, and I was eager to see which artists would be featured in the sequel.

Multiple commenters described discovering metal bands through Metal: Hellsinger, with one user stating I found out about Arch Enemy through this game, and they’ve become one of my favorite bands to listen to! That cultural crossover between gaming and heavy metal represented The Outsiders’ most significant achievement beyond sales numbers. The studio introduced metal music to audiences who might never have explored the genre otherwise, while giving metal fans a game that respected their musical tastes rather than treating metal as edgy window dressing.

What Happens to Metal: Hellsinger Now

Funcom retains ownership of the Metal: Hellsinger IP following The Outsiders’ closure. Whether Funcom will continue supporting the existing game, develop sequels with different teams, or simply let the franchise languish remains unclear. The game remains available for purchase on all platforms with existing owners retaining access, but future updates, DLC, or quality-of-life improvements seem unlikely without the original development team maintaining the codebase.

The most optimistic scenario involves Funcom licensing the IP back to whatever reformed studio Goldfarb and his team create from The Outsiders’ ashes. Publishers sometimes grant IP rights to original developers after acquisitions sour, though those arrangements typically require the reformed studio proving financial viability through investors or crowdfunding first. Less optimistically, Metal: Hellsinger becomes abandonware that Funcom neither develops nor licenses, letting the franchise die alongside the studio that created it.

Frequently Asked Questions

Why is The Outsiders studio closing?

The Outsiders is shutting down as part of broader layoffs at parent company Funcom following Dune: Awakening’s launch. The closure affects the entire Funcom Stockholm office including the roughly 60-person team at The Outsiders.

What did The Outsiders develop?

The Outsiders developed Metal: Hellsinger, the critically acclaimed 2022 rhythm-based FPS where players shoot demons to heavy metal music. The studio also created Metal: Hellsinger VR in 2024. They previously worked on Darkborn (Project Wight) which was cancelled in 2020.

Will there be a Metal: Hellsinger 2?

Very unlikely now that The Outsiders has closed. Studio founder David Goldfarb mentioned they hoped to do something even better after Hellsinger, but those plans died with the closure. Funcom owns the IP but hasn’t announced plans for sequels.

Who is David Goldfarb?

David Goldfarb founded The Outsiders in 2015 after serving as game director on Battlefield 3 at DICE and Payday 2 at Overkill Software. He’s seeking opportunities to continue in some new form following the closure.

Why did Funcom lay off The Outsiders?

Funcom announced layoffs to focus on Dune: Awakening’s ongoing live service support following the game’s launch. The Outsiders became collateral damage from Dune’s resource needs despite Metal: Hellsinger’s success.

When did Funcom acquire The Outsiders?

Funcom acquired The Outsiders in August 2021, about one year before Metal: Hellsinger launched in September 2022. The closure comes just four years after the acquisition.

What happens to Metal: Hellsinger now?

The game remains available for purchase and existing owners retain access. However, future updates, DLC, or sequels seem unlikely without the original development team. Funcom owns the IP and will decide whether to continue the franchise.

Conclusion

The Outsiders’ closure represents the gaming industry’s cruelest pattern: developers who survive cancellation, create beloved hits, earn critical acclaim, and cultivate passionate communities still get shut down when unrelated corporate projects underperform. Metal: Hellsinger proved that rhythm FPS hybrids could work commercially while introducing metal music to new audiences and delivering genuine respect for the genre through legendary vocalist collaborations. Yet none of that success protected the 60-person Stockholm team when Funcom needed scapegoats for Dune: Awakening’s disappointing returns. David Goldfarb’s determination to continue in some new form provides hope that the talent behind Metal: Hellsinger will create again, but the closure destroys years of accumulated experience, relationships, and momentum that no reformation can immediately replace. For the laid-off developers now hurting and seeking placements, the bitter lesson is that even doing everything right, creating games players love and critics celebrate, doesn’t guarantee survival when corporate priorities shift and acquisition chains concentrate risk beyond any studio’s control.

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