The gaming industry faces another significant studio closure as Zynga officially shutters Echtra Games, the development team behind Torchlight 3. This decision marks the end of a four-year journey that began with ambitious plans to expand Zynga's presence in PC and console gaming but ultimately failed to deliver on its promises.
Studio Closure Impacts Dozens of Developers
Zynga confirmed that Echtra Games will cease operations by the end of this month, affecting approximately 61 employees according to LinkedIn data. The San Francisco-based studio had been working on an unannounced cross-platform action RPG that will never see the light of day. In a statement to IGN, Zynga described the closure as part of a strategic realignment of the company's resources and priorities, promising to treat affected employees with the utmost respect and consideration.
From Diablo Legacy to Disappointing Reality
Echtra Games carried significant pedigree in the gaming world. Founded in 2016 by Max Schaefer, a co-creator of the legendary Diablo franchise and co-founder of Blizzard North, the studio initially focused on developing Torchlight Frontiers as an MMO experience. However, after receiving feedback from testers and guidance from publishers, the project pivoted to become Torchlight 3, a more conventional standalone action RPG.
Key Personnel:
- Max Schaefer: Founder of Echtra Games, co-creator of Diablo, co-founder of Blizzard North and Runic Games
- Frank Gibeau: Zynga CEO who announced the acquisition strategy
Torchlight 3's Lukewarm Reception
The studio's flagship title failed to capture the magic that made the original Torchlight series beloved among action RPG enthusiasts. Critics described Torchlight 3 as mechanically sound but ultimately bland compared to other options available in 2020. The game's free-to-play origins remained visible in its final form, with systems that resembled those found in predatory mobile games rather than premium PC experiences.
Zynga's Failed Console Expansion Strategy
Zynga acquired Echtra Games in 2021, less than six months after Torchlight 3's disappointing launch. CEO Frank Gibeau positioned the acquisition as a strategic move to help the mobile-focused company establish a stronger presence in PC and console gaming markets. The plan involved developing a cross-platform RPG in partnership with NaturalMotion studio, but this project never progressed beyond initial announcements.
Studio Timeline:
- 2016: Echtra Games founded by Max Schaefer
- 2020: Torchlight 3 released to lukewarm reception
- 2021: Acquired by Zynga for PC/console expansion
- 2025: Studio closure announced, affecting ~61 employees
Broader Pattern of Take-Two Restructuring
The closure of Echtra Games reflects wider challenges facing its parent company, Take-Two Interactive, which owns Zynga. The publisher recently announced the shutdown of Star Wars: Hunters just nine months after launch, dismantled its Private Division publishing label, and laid off approximately 5% of its workforce in April 2024. These moves suggest a significant strategic shift away from experimental gaming ventures toward more established franchises.
Recent Take-Two/Zynga Closures:
- Star Wars: Hunters shutdown (9 months after launch)
- Private Division publishing label sold off
- 5% workforce reduction in April 2024
- Multiple project cancellations
Industry Implications
This closure represents another example of the gaming industry's ongoing consolidation challenges. Studios with strong creative legacies continue to struggle under corporate ownership structures that prioritize immediate returns over long-term creative development. The loss of Echtra Games eliminates another potential source of innovative action RPG experiences, leaving fans of the genre with fewer options from experienced developers who understand the intricacies of creating compelling dungeon-crawling adventures.