Postal Game Developer Shuts Down After AI Controversy Kills Project in 48 Hours

In one of the fastest implosions in gaming history, a new Postal game was announced, cancelled, and its developer shut down within 48 hours. Running With Scissors revealed Postal: Bullet Paradise on December 3, 2025, only to cancel it December 4 after fans accused developer Goonswarm Games of using generative AI art. By December 5, Goonswarm announced it was closing permanently, citing threats, insults, and the impossibility of recovering from false accusations. The entire saga showcases how quickly AI controversies can destroy projects in 2025’s gaming landscape.

Gaming controller with vibrant RGB lighting on dark surface

What Actually Happened

Postal: Bullet Paradise was announced as a top-down roguelike shooter set in the Postal universe, being developed by Goonswarm Games and published by Running With Scissors. The announcement trailer immediately drew criticism from the Postal community, with fans pointing to art assets that appeared AI-generated based on telltale signs like inconsistent details, weird textures, and the uncanny valley quality that AI art often exhibits. The backlash was swift and harsh.

Mike J, a representative from Running With Scissors, initially defended the game on Discord, insisting it wasn’t made with AI and telling critics they could “eat my shit.” This aggressive response backfired spectacularly, turning simmering discontent into full-blown outrage. Running With Scissors quickly backpedaled, issuing an apology before ultimately cancelling the entire project less than 24 hours after announcement. Their statement cited “extreme damage to our brand and our company reputation” and broken trust with the development team.

Multi-monitor gaming setup displaying controversial shooter game

Goonswarm’s Side of the Story

Goonswarm Games responded with their own statement on December 5, maintaining the AI accusations were false and that six years of work had been destroyed in days. Studio head Artem Korkin told Polygon the closure would affect nine developers and contractors. The statement described receiving “a large number of threats, insults, and mockery” that pushed them toward shutting down entirely.

When asked if Goonswarm would continue developing Bullet Paradise without the Postal branding, Korkin said they still possess the source code but don’t believe continuing development is feasible. The statement expressed regret for the artists who “put their soul into this and supported our studio, only to face false AI accusations.” Whether the accusations were truly false remains disputed, as Goonswarm never provided concrete evidence debunking the AI claims beyond blanket denials.

The AI Art Controversy Context

Gaming has become ground zero for AI art controversies in 2025. Players have grown increasingly sensitive to AI-generated content after multiple high-profile incidents. Call of Duty: Black Ops 7 admitted to using AI for cosmetic profile images in November 2025 after player backlash. Korean publisher Krafton declared an “AI-first” transition in October 2025 while simultaneously offering voluntary resignation programs to employees, sparking industry-wide debate about AI replacing human artists.

The resistance stems from multiple concerns. Many players view AI art as soulless, lacking the intentionality and craftsmanship of human-created work. There are ethical issues around AI models being trained on copyrighted artwork without artist permission or compensation. And there’s the economic reality that AI threatens to eliminate jobs for concept artists, illustrators, and other creatives who’ve spent years developing their skills.

DateEvent
December 3, 2025Postal: Bullet Paradise announced
December 3, 2025Community immediately alleges AI art use
December 3, 2025Running With Scissors rep insults critics
December 4, 2025Running With Scissors apologizes, cancels game
December 5, 2025Goonswarm Games announces studio closure

Focused gamer hands gripping controller during intense gaming moment

The Postal Series Context

Postal has always courted controversy since the original 1997 game. Running With Scissors built its brand on shock value, offensive humor, and pushing boundaries that mainstream publishers wouldn’t touch. The series gained notoriety for ultra-violence, crude humor, and deliberately provocative content. The original Postal was so controversial that major retailers refused to stock it, and co-founder Vince Desi has spoken about being essentially “banned in 17 countries” with their marketing.

Postal 2 became a cult classic for its open-ended gameplay and absurdist humor. Postal 3 was a disaster that Running With Scissors later disavowed, blaming Russian developer Trashmasters for a botched production. Postal 4: No Regerts launched in 2019 through Early Access, finally reaching full release in 2022. The series has also spawned spinoffs like Postal: Brain Damaged (2022) and the April Fool’s joke POOSTALL Royale (2023).

The franchise survives on a dedicated cult following that appreciates the series’ deliberately offensive tone and rebellious attitude. That same fanbase, however, has zero tolerance for perceived inauthenticity. Using AI art in a Postal game strikes fans as lazy and corporate, the exact opposite of the scrappy indie spirit the series represents. Running With Scissors understood this immediately once the backlash started, which explains their rapid cancellation.

What Happens Now

Running With Scissors stated in their cancellation announcement that they have “a lot of good things coming (some you know and some you don’t).” The publisher remains active with Postal 4 continuing to receive updates and potential future projects in development. Some community members expressed hope that Bullet Paradise’s premise – a top-down roguelike in the Postal universe – could be handed to a different developer, though nothing has been announced.

For Goonswarm Games, the situation is terminal. Nine people lost their jobs, six years of work vanished, and the studio’s reputation is permanently damaged regardless of whether the AI accusations were accurate. Even if they were wrongly accused, the court of public opinion has already delivered its verdict. The threats and harassment they received represent the ugly side of online activism, where legitimate concerns about AI usage spiral into personal attacks.

FAQs

Was the AI art actually confirmed?

No official confirmation exists beyond community accusations and Running With Scissors’ decision to cancel based on those accusations. Goonswarm Games denied using AI-generated art, but never provided concrete evidence like development footage, artist portfolios, or process videos that would definitively disprove the claims. The cancellation suggests Running With Scissors believed the accusations had merit or at minimum couldn’t risk being associated with AI controversy.

What is Running With Scissors?

Running With Scissors is the independent studio that created the Postal franchise in 1997. They’re known for controversial, offensive humor and deliberately provocative content. The studio was founded by Vince Desi and has maintained the Postal series for nearly three decades despite retail bans, political backlash, and constant controversy.

What was Postal: Bullet Paradise supposed to be?

Bullet Paradise was described as a top-down roguelike shooter set in the Postal universe. Details were limited since the game was cancelled within 24 hours of announcement, but it represented a different genre take on the franchise compared to the mainline first-person entries. The concept could theoretically be handed to another developer, though nothing has been announced.

Who was Goonswarm Games?

Goonswarm Games was an independent studio that reportedly spent six years developing Postal: Bullet Paradise before its cancellation. The studio employed nine developers and contractors according to studio head Artem Korkin. They’ve now permanently shut down following the cancellation and subsequent harassment.

Why are gamers so against AI art?

Multiple reasons drive resistance to AI art in gaming. Ethical concerns about AI training on copyrighted work without permission, fear that AI will eliminate jobs for human artists, perception that AI art lacks soul and intentionality, and frustration with studios using AI to cut costs while charging full price. The backlash has intensified throughout 2024-2025 as more games get caught using AI assets.

What happens to the people who worked on the game?

All nine developers and contractors at Goonswarm Games lost their jobs when the studio shut down. Finding new employment in the current gaming industry climate, which saw massive layoffs throughout 2024-2025, will be challenging. The cancelled project can’t be used for portfolio work since it’s permanently associated with controversy.

Could Goonswarm have recovered from this?

Unlikely. The combination of cancellation by their publisher, public accusations of using AI art, harassment from online communities, and permanent reputation damage created an impossible situation. Even if the AI accusations were false, the stigma would follow any future projects. Starting fresh with a new studio name might have been theoretically possible, but Korkin’s statement suggested they lost the will to continue.

Will there be more Postal games?

Yes, Running With Scissors confirmed they have other projects in development. Postal 4: No Regerts continues receiving support, and the publisher stated they have “good things coming.” The Bullet Paradise cancellation doesn’t end the franchise, though it might make Running With Scissors more careful about external developers and AI controversies going forward.

The Bigger Picture

The Postal: Bullet Paradise disaster exemplifies how quickly AI controversies can destroy gaming projects in 2025. Whether Goonswarm actually used AI art or was falsely accused almost doesn’t matter at this point. The mere perception of AI usage triggered such immediate, severe backlash that cancellation became inevitable within 24 hours. No investigation, no benefit of the doubt, just instant condemnation.

This creates a chilling precedent for smaller studios. One accusation, even if false, can end your company overnight. The threats and harassment Goonswarm received show how online activism can cross into abuse. But it also demonstrates that gaming communities in 2025 will not tolerate AI art, especially from franchises that built their identity on authenticity and rebellion. Running With Scissors understood their audience well enough to cancel immediately rather than die on that hill. Goonswarm, unfortunately, became collateral damage in gaming’s ongoing war over generative AI.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top