After just six months, Spectre Divide, the tactical FPS backed by Shroud, is shutting down. Mountaintop Studios, the game's developer, announced the closure due to the game failing to meet financial expectations. Read on for details from Mountaintop Studios' CEO and the reasons behind this unfortunate decision.
Spectre Divide to Go Offline in 30 Days
Season 1 and Console Launch Fall Short of Expectations
The announcement, made via Spectre Divide's official Twitter (X) account on March 13th, revealed that the game's first season and console launch significantly underperformed. Mountaintop Studios CEO, Nate Mitchell, explained, "It’s been two weeks since we launched Spectre Divide Season 1: Flashpoint. We’re incredibly grateful for the support you’ve shown, but unfortunately, the launch hasn’t achieved the success needed to sustain the game and keep Mountaintop afloat."
While the game initially saw over 400,000 players and a peak concurrent player count of around 10,000 across platforms, sustained player engagement and revenue proved insufficient to cover operational costs.
As reported by The Verge in December 2024, Mountaintop Studios faced significant challenges. The console launch and Season 1 were considered a final attempt to revive the game. Game Director Lee Horn attributed some of the setbacks to server issues impacting the initial launch momentum, despite marketing efforts. Mitchell added, "If Season 1 didn't perform as hoped, we'd have to assess the viability of continuing."
The game is expected to go offline within 30 days. New purchases will be disabled, and refunds will be issued for purchases made since the Season 1 relaunch. Further details regarding refunds will be announced soon.
Spectre Divide's Demise Despite $30 Million in Funding
The closure comes as a surprise, considering Mountaintop Studios secured $30 million in funding last year. The company previously announced on LinkedIn that this funding came from prominent investors including Anthos Capital, RX3 Growth Partners, A16Z GAMES, and other angel investors.
However, this substantial investment proved insufficient to ensure the game's long-term success. Mitchell stated, "We explored every option, including finding a publisher, additional investment, or acquisition, but ultimately couldn't make it work. The industry is currently facing significant challenges."
He continued, "Our goal was to create something innovative and original. We took risks, created a unique art style, and partnered with key figures. We knew the odds were stacked against us, but we pursued it anyway. It wasn't a guaranteed success, but we tried."
Spectre Divide joins a growing list of live-service games that have failed to thrive due to the inherent challenges of the business model. Games like Multiversus, Babylon's Fall, and Concord, along with cancelled projects such as The Last of Us Online and a rumored God of War live-service game, highlight the difficulties in this space.
Mountaintop Studios to Close This Week
Mitchell announced that Mountaintop Studios will cease operations by the end of the week due to depleted funding. He stated, "Since the PC launch, we've stretched our resources as far as possible, but we're now out of funding to support the game. This means Mountaintop will be closing its doors at the end of this week."
