Mountaintop Studios has announced the closure of its tactical FPS game, Spectre Divide, just six months after launch. The decision, attributed to the game failing to meet financial expectations, marks a significant setback for the studio despite a positive initial response.

Spectre Divide to Go Offline in 30 Days

The game's first season and console launch fell short of projections, ultimately leading to this difficult decision. In a message to fans on March 13th, Mountaintop Studios CEO Nate Mitchell explained that while the initial week saw over 400,000 players and a peak concurrent player count of 10,000, sustained player engagement and revenue proved insufficient to maintain the game and studio operations. Mitchell noted the disappointment of not meeting the success needed to keep Mountaintop afloat, despite the initial positive reception of Season 1: Flashpoint. He highlighted that the lack of engagement after the initial launch week proved insurmountable. Lee Horn, Spectre Divide's Game Director, previously attributed some of the game's struggles to launch-day server issues that hampered initial momentum. Mitchell acknowledged that the lack of engagement after the initial week was a critical factor in the decision.

The Verge previously reported on Mountaintop Studios' financial difficulties in December 2024, highlighting the console launch and Season 1 as a make-or-break moment for the game. The studio anticipated that strong Season 1 performance would determine the game's future.

The game will be taken 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 the refund process will be announced shortly.

$30 Million Funding Couldn't Save Spectre Divide

The closure comes as a surprise considering Mountaintop Studios secured $30 million in funding last year from prominent investors including Anthos Capital, RX3 Growth Partners, A16Z GAMES, and several angel investors. However, even this substantial investment proved insufficient to overcome the game's underperformance. Mitchell attributed the failure to the current challenging market conditions, stating that despite exploring various options including publishing deals, additional investment, and acquisition, the studio was unable to secure the necessary resources. He reflected on the ambition of creating an innovative game in a competitive market, acknowledging the inherent risks involved.

Spectre Divide joins a growing list of live-service games that have struggled to find sustained success, including titles like Multiversus, Babylon’s Fall, and Concord, as well as cancelled projects such as The Last of Us Online and a reportedly planned God of War live-service game.

Mountaintop Studios to Close This Week

With remaining funds depleted, Mountaintop Studios will cease operations by the end of the week. Mitchell expressed the team's disappointment but acknowledged the reality of their situation.